Republic of the Philippines

PRIVATIZAITON AND MANAGEMENT OFFICE

104 Gamboa St., Legaspi Village, Makati City

17 April 2012

Bid Bulletin
Security Services (PMO 02-2012)

All concerned participating prospective bidders are hereby informed of the following
amendments/changes and clarifications in the requirements for procurement of PMO’s
Security Services for 2012-2013:

Amendments

1. PMO will implement DOLE Department Order No. 18-A, series of 2011, dated November
14, 2011 specifically:

Section 9 (b)(ii)

“The place of work and terms and conditions governing the contracting
arrangement, to include the agreed amount of the services to be rendered, the standard
administrative fee of not less than ten percent (10%) of the total contract cost”.

The terms of which will be included in the service contract between PMO and the
winning bidder.

2. PMO will implement PADPAO Cost Distribution Per Month, Region VII-CentalVisayas,
Wage Order No. ROVII-16, Class C-Cities and municipalities in the Province of Bohol and
Negros Oriental (effective September 22, 2011).

3. Financial Proposal

3.1 The percentage used representing the administrative overhead margin of the
offered bid and PADPAO Circular (must not be less than 10% and not more than
24%) must be clearly indicated in the itemized presentation of the financial bid
component and shall serve as attachment to the Financial Proposal Submission
Sheet labeled as Annex “D-1”. Prospective bidder’s financial proposal whose
administrative fee is less than 10% or more than 24% of the contract cost will be
automatically disqualified.

3.2 The excess of twelve (12) days COLA as indicated in PADPAO Cost Distribution
Per Month, Wage Order No. NCR-16 (effective May 26, 2011) should be
incorporated in the Financial Proposal, which will have to be shouldered by the
security agency.
 Reminders/Clarifications

1. BDS Section 13.1The Performance Security may be in any of the following forms:

a) Cash, certified check, cashier’s check, manager’s check issued by a Universal or

Commercial Bank in the amount equivalent to five percent (5%) of the Total Contract
Price; or
b) Bank guarantee or irrevocable letter of credit issued by as Universal or Commercial
Bank; provided, however, that it shall be confirmed or authenticated by a Universal
or Commercial Bank, if issued by a foreign bank, in the amount equivalent to five
percent (5%) of the Total Contract Price; or
c) Surety Bond preferably issued by the Government Service and Insurance System
(GSIS) in the amount equivalent to thirty percent (30%) of the Total Contract Price;
or Surety Bond callable upon demand issued by a reputable surety or insurance
company duly certified by the Insurance Commission as authorized to issue such
security in the amount equivalent to thirty percent (30%) of the Total Contract Price.

2. Date of Opening of Bids

The Opening of Bids is on Tuesday, 24 April 2012,9:00 A.M. for NCR and Luzon,
and 2:00 P.M. for Visayas and Mindanao,at 6/F PMO Bldg., 104 Gamboa St., Legaspi
Village, Makati City. Late comers will not be entertained and will be declared in default.

3. Submission of Eligibility, Technical Component and Financial Proposals

Each Bidder shall submit its Eligibility Documents, Technical Component and
Financial Proposal in three (3) sets each,one (1) set of original/authenticated and two
(2) sets of photocopies.The original/authenticated documents should be placed inside an
envelope and this envelope should be marked “ORIGINAL”. The first set of photocopies
of the original/authenticated documents should be placed inside an envelope and this
envelope should be marked “COPY 1”, and the other set of photocopies should also be
placed inside an envelope and this envelope should be marked “COPY 2”.

The original/authenticated Eligibility Documents and Technical Component should

be sealed in one envelope, and the Financial Proposal should be sealed in a separate
envelope. These two (2) envelopes should be the content of envelope marked as
“ORIGINAL”. The procedure should be repeated for the first set of photocopies of the
said documents, which should be the content of envelope marked as “COPY 1”, and
another set of photocopies of the same documents should be the content of envelope
marked as “COPY 2”. All of these three (3) envelopes marked “ORIGINAL”, “COPY 1”
and “COPY 2” should be placed in one envelope upon submission to PMO BAC.

The Eligibility Documents, Technical Component and Financial Proposal should be

initialed by the authorized person(s). The true/genuine original of the Eligibility
Documents submitted (e.g. SEC/DTI Registration Certificates, Mayor’s Permit, Audited
Financial Statementreceived by BIR, etc.) should be presented for verification purposes
only and will bereturned immediately after the bidding.
4. Tie in Bid Amount

In the event of a tie among bidders, such that two or more bidders submitted the
same bid amount in their financial proposals, PMO shall use non-discretionary/non-
discriminatory measure, such as “draw lots” or similar methods of chance.

Further, PMO may opt to bring the concerned bidders to agree on a better
selection criteria which should also be non-discretionary/non-discriminatory and similarly
based on sheer luck or chance.

5. Bidding Forms/Annexes

Please take note and be reminded of the legal documents (as indicated in the
Sample Forms/Annexes in the Bidding Documents (PMO 02-2012) that need to be
notarized as submitted. Failure to do so would mean an automatic disqualification.

6. Security Contract

The Security Contract as one of the Annexes in the bidding document shall be
subject to modification/negotiation with the winning bidder.

7. Prospective bidder(s) who fails to purchase the Bidding Document (PMO 02-2012) for
PMO’s Security Services will not be allowed to join the bidding process.

For the guidance and information of all concerned.

ELLEN H. RONDAEL
Deputy Privatization Officer and
Chairperson, PMO BAC
 Annex “D-1”

Breakdown for Financial Proposal

Security Services for ___________
2012-2013

Days worked per week 7 days

No. of days/year 8 hrs work/day

Amount Directly to Guard P

New Daily Wage (DW)

Ave. Pay/Month (DW x no. of days per year/12) P

Night Differential Pay (Ave. Pay/Month x 10% x 1/3)
13th Month Pay (DW x 365/12/12)
5 days Incentive Pay (DW x 5/12)
Uniform Allowance (R.A. 5487)

Amount to Government In Favor of Guard

Retirement Benefit (R.A. 7641) P
SSS Premium
Philhealth Contribution
State Insurance Fund
Pag-Ibig Fund

A. TOTAL AMOUNT TO GUARD & GOV'T.

B. AGENCY FEE
Administrative Overhead and Margin

C. VALUE ADDED TAX (Agency Fee x 12% VAT - RMC - 039-20-07)

MINIMUM CONTRACT RATE FOR 8 HOURS

MINIMUM CONTRACT RATE FOR 12 HOURS

(Minimum contract rate for 8 hours x 1.5)
Note:
1. New PADPAO Rate in accordance to latest wage adjustment effective on date state above
2. Agency Fee (Admin Overhead and Margin) covers operation costs such as taxes and licenses (local &
national), supervision, training, insurances, and other incidental expenses relative to security guarding to
include return on investments and margin of profit.
3. Withholding Tax Computation are as follows: (Agency Fee x applicable rate)
a. For Non-Gov't. Account - 2% Expanded Withholding Tax (Agency Fee x 2%)
b. For Gov't. Account - 6% Creditable Withholding Tax (Agency Fee x 6%)

New Formula on the computation of the equivalent Monthly Minimum Wage Rates based on the latest NWPC (National Wages &
Productivity Commission) dated ______________ for NCR/Luzon and dated _______________ for Visayas/Mindanao