In compliance Renewal of Contract of Lease of Real Property (New Provision) the

end-user is hereby submitting herewith the CBA conducted on the Real Property
leased by the Field Office since May 2018 to store Records ans uncerviceable
materials and equipment of Administrative Division. A total of at least 600 square
meter warehouse space needs to be leased by DSWD FO VIII.

The current rental rate of the Office Space is Php 230,000.00 per month and there
were no notice from the owner for any rental retes adjustment.

In view therof the Administrative Division through conducted a Cost Benefit Analysis,
to determine if the said offer is beneficial to the agency/government.

The following are the consideration were taken into account;

1. Comparative Rental Rate in the vicinity;

Particulars
Monthly Rental Php 36,300.00* Php 300,000.00* Php 230,000.00*
Rate for CY 2020
Area in Square 160 928 600
Meter
Unit Rate/Square Php 226.50 Php 323.28 Php 383.34
meter
Increase none none none
*rate as of January to December of the current year.

It can be noted that the offer of

2. is the second lowest rate per square meter unit with at least 18.6% lower than
Corporation. However, the area in which we will be compeled to rent is much
bigger that what is actually required. Thus we will be paying rents unusable
spaces of no significant benefits to us. Moreover, the entire rental cost for six
months to Padilla Property would worth One Million Eight Hundred Thousand
(Php 1,800,000.00) which is higher than our Approved Budget Cost, which is
only One Million Three Hundred Eighty Pesos. (Php 1.380,000.00)

3. If in case the Field Office opted to transfer to other warehouse space, even at
a lower rental rate, the total effect would be the same or still disadvantageous
as this would entail additional cost for hauling expenses, and transfer of
utilities and equipment expenses. Our estimates for this additional cost to
transfer would amount to One Hundred Fifty two Thousand Pesos (Php
152,800.00) not to mention the imminent disruption in the office proceedings
and transactions.
 Below is the breakdown of possible expenses if we opted to transfer;

Possible Cost Item Estimated Cost

Hauling Cost (Laborers) Php 24,200.00
Logistic Cost to Haul Content of the Php 120,600.00
Warehouse
Other miscellaneous cost Php 8,000.00
TOTAL Php 152,800,00

Staying in the same warehouse for the second sementer of 2020 would still
be beneficial to our agency considering that our area requirement for facility
storage is met, and the increase in rent is commensurate to space being
offered.

4. Non-monetary benefits of continuing our contract of lease.

A. The avilabity on Site hence the location of this warehouse is with the same
compound of our

B. The existing location is accessible with less traffic volume, and very
conducive for storage and warehousing. The area is five to ten minutes
ride

C. Considering that the warehouse has been rented by since 2018, it is

already known to the clients as our existing Extension Office.

In view of the forgoing, it is more advantageous to the agency to continue the

contract of lease with Rofladjo Corporation, for our required warehouse space based
on the following;

1. Lowest Total Rental Cost for the entire six months contract.
2. The space requirement is met with the most practical and commensurate
money’s worth for space rentals.
3. We can save transfer expenses
4. Other non-monetary benefits stated.

Thus, it is recommended by the undersign to renew the Contract of Lease with

Rofladjo Corporation along