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Republic of the PhilippinesENERGYREGULATORYCOMMISSION

BACRESOLUTIONNo. 22- ,Series of 2019 PB

A Resolution of the Energy Regulatory Commission Bids andAwards Committee (ERC-BAC)Recommending to Award the

Contractfor the Procurement of Rental of PhotocopyingServices and Multi-Function Printer Services under Lot No.

2018-28 to Quartz Business Products Corporations

WHEREAS, on 10 December 2018, the Energy Regulatory Commission -Bids and and Awards Committee (ERC-BAC) received from the Planning andPublic Information Service - Management Information Service Division (PPIS-MISD) Purchase Request No. 2018-12-340, requesting for the procurement of"Rental of Photocopying Services and Multi-Function Printer Services" with anApproved Budget for the Contract (ABC) in the amount of Five Million FiveHundred Thousand Pesos (PhPS,Soo,ooo.oo), VATInclusive;

WHEREAS, based on the Indicative - Annual Procurement Plan for FY2019, which was approved by the Head of Procuring Entity (HoPE) on 14November 2018, the said service is to be procured through Public Bidding;

WHEREAS, on 13 December 2018, the ERC-BACissued and posted the firstInvitation to Bid (ITB) for the "Procurement of Rental of PhotocopyingServices and Multi-Function Printer Services" under Lot No. 2018-28with an ABC of Five Million Five Hundred Thousand Pesos(PhPS,Soo,ooo.oo), VAT Inclusive at the Philippine Government ElectronicProcurement System (PhiIGEPS) website, at the ERC website and on bulletinboards within the premises of the ERC specifically reserved for the purpose;

WHEREAS, meanwhile, the Annual Procurement Plan for FY 2019 wasapproved by the HoPE on 29 January 2019 and Supplement and Update hereofwere likewise approved on 05 March 2019, This project is under Line item 42,Rental/Lease of Office Space and Equipment, MOOE of the APP;

WHEREAS, after a duly conducted bidding process, the ERC-BAC issuedBAC Resolution No. 10, Series of 2019 PB dated 01 March 2019, declaringthe first bidding of this procurement project a failure as all bid failed post-qualification;

WHEREAS, on 01 March 2019, the ERC-BAC issued and posted the secondITB for this procurement project under the same Lot No. 2018-28 with the sameABC;

WHEREAS, in compliance with Section 22.1 of Rule VII of the RevisedImplementing Rules and Regulations (IRR) of Republic Act No. 9184, the ERC-BAC held anew a Pre-Bid Conference on 11 March 2019 at ten o'clock in themorning (10:00 A.M.);

Pacific Center Building, San Miguel Avenue, Pasig CityMailing Address: P.O. Box 181 Greenhills, Metro ManilaWebsite: http://www.erc.gov.ph

Trunk line: 689-5-372 (ERC)Fax Nos. 633-32-53 • 634-86-41

BAC KESOLUTION NO.J..,2, SERIES OF 2019 PBA RESOLUTION OF THE ENERGY REGULATORY COMMISSION BIDS AND AWARDS COMMITTEE (ERC-BAC) RECOMMENDING TOAWARD THE CONTRACT FOR THE PROCUREMENT OF RENTAL OF PHOTOCOPYING SERVICES AND MULTI-FUNCTION PRINTERSERVICES UNDER LOT NO. 2018-28 TO QUARTZ BUSINESS PRODUCTS CORPORATIONS

WHEREAS, during the Pre-Bid Conference, only one (1) bidder, QuartzBusiness Products Corporations (Quartz) was present and actively participated inthe discussion;

WHEREAS, on 14 March 2019, the ERC-BAC issued and postedSupplemental Bulletin No. 08, Series of 2019, modifying and/or amending SectionIII. Bid Data Sheet and Section VII. Technical Specifications of the BiddingDocuments;

WHEREAS, thereafter, two (2) bidders, Quartz and Otus Copy Systems, Inc.(Otus), timely submitted their separated sealed bids;

WHEREAS, on 25 March 2019 at ten o'clock in the morning (10:00 A.M.),the ERC-BAC, together with the Technical Working Group (TWG) and the BACSecretariat, convened for the opening of bids submitted for the "Procurement ofRental of Photocopying Services and Multi-Function Printer" under LotNo 2018-28. Quartz and Otus were in attendance;

WHEREAS, upon opening of the technical components of their respectivebids, the TWG found that both Quartz and Otus were eligible to further participatein the bidding, having passed all the required eligibility and technical requirements;

WHEREAS, the TWG proceeded to open the financial components of thebids, and found the following results:

Bidder Bid Amount(In PhP)

Quartz Business Products Corporations 4,183,200.00

Otus Copy Systems, Inc. 4,249,257·00

WHEREAS, after due evaluation, the ERC-BAC found that the bid of Quartzin the amount of Four Million One Hundred Eighty Three Thousand TwoHundred Pesos (PhP 4,183,200.00), VATinclusive is lower than that of Otus'and is within the ABC. Consequently, the ERC-BAC directed the TWG to conductpost-qualification on the Quartz's bid, being the Lowest Calculated Bid;

WHEREAS, in its Memorandum dated 25 March 2019 (the "Memorandum"),TWG reported that, based on their post -qualification, Quartz, with its bid in theamount of the Four Million One Hundred Eighty Three Thousand TwoHundred Pesos (PhP 4,183,200.00), VAT inclusive, has met all the legal,technical, and financial requirement of this procurement project;



BAC l<ESOLUTION NO. ot02, SERIES OF 2019 PBA RESOLUTION OF THE ENERGY REGULATORY COMMISSION BIDS AND AWARDS COMMITTEE (ERC-BAC) RECOMMENDING TOAWARD THE CONTRACT FOR THE PROCUREMENT OF RENTAL OF PHOTOCOPYING SERVICES AND MULTI-FUNCTION PRINTERSERVICES UNDER LOT NO. 2018-28 TO QUARTZ BUSINESS PRODUCTS CORPORATIONS

WHEREAS, the ERC-BAC reviewed the Memorandum and concurred withthe TWG's evaluation;

WHEREAS, Item 2.1.2 of DBM Circular Letter No. 2019-1 authorizesgovernment agencies to obligate, pending approval of the FY 2019 GeneralAppropriations Act (GAA), amounts corresponding to their actual operatingexpenditure requirements under the regular budget for the first quarter of FY 2019but not exceeding twenty-five per cent (25%) of the FY 2018 GAA and FY 2019National Expenditure Program (NEP), whichever is lower. Said provision ishereunder quoted as follows:

"2.0 Pending the approval of the FY 2019 GeneralAppropriations Act (GAA), all operating units, i.e.,agencies of the national government receivingallotment/Notice of Cash Allocation (NCA) directlyfrom DBM, are authorized to obligate the amountcorresponding to their actual requirement under theregular budget for the first quarter of FY 2019 butnot to exceed the following percentages:

"2.1 Chargeable Against Agency Specific Budget

xxx

2.1.2 Maintenance and Other OperatingExpenditures (MOOE) - twenty-fivepercent (25%) of regular programs andongoing foreign assisted/locallyfunded projects funded under the FY2018 GAA (R.A. No. 10964) and the FY2019 NEP, whichever has the loweramount.

WHEREAS, moreover, Item 6.1 ofGPPB Circular 09-2018 permits the awardof the contract of procurement projects covering recurring projects undertakenthrough the early procurement activities using the 2019 National ExpenditureProgram under the FY 2019 Reenacted Budget, to wit:

"6.1 The Award of Contract on any activity or projectundertaken through EPA using the 2019 NEO underthe FY 2019 Reenacted Budget shall be acted uponaccordingly:

"6.1.1Procurement projects covering recurringactivities or projects, hence appropriationstherefor are included in both the FY 2018 GAAand FY 2019 NEP, undertaken through EPA


Trunk line: 689-5-372 (ERC)Fax os. 633-32-53 • 634-86-41

BAC RESOLUTION NO.J,l, SERIES OF 2019 PBA RESOLUTION OF THE ENERGY REGULATORY COMMISSION BIDS AND AWARDS COMMITTEE (ERC-BAC) RECOMMENDING TOAWARD THE CONTRACT FOR THE PROCUREMENT OF RENTAL OF PHOTOCOPYING SERVICES AND MULTI-FUNCTION PRINTERSERVICES UNDER LOT NO. 2018-28 TO QUARTZ BUSINESS PRODUCTS CORPORATIONS

under the FY 2019 NEP may be awarded onthe basis of the FY2019 Reenacted Budget."

WHEREAS, this subject procurement project is an actual operatingexpenditure and recurring project falling under the purview of DBM Circular LetterNo. 2019-1 and of GPPB Circular 09-2018;

WHEREAS, considering that there are only nine (9) months remaining forthe current year, the contract period and contract price should be reducedaccordingly;

WHEREAS, this downward adjustments is allowed pursuant to the provisionsof Item 1.1 of the Contract Implementation Guidelines for the Procurement of Goods,Supplies and Materials, to wit:

"1.1Subject to the conditions setforth below, amendmentsto order may be issued at any time by the procuringentity concerned. If any such oder increases ordecreases the cost of, or the time required forexecuting any part of the work under the originalcontract, an equitable adjustment in contractprice and/or delivery schedule shall be mutuallyagreed upon between the parties concerned, and thecontract modified in writing."

WHEREAS, the reduced contract price in the amount Three Million OneHundred Thirty Seven Thousand Four Hundred Pesos(PhP3,137,400.00), VAT Inclusive, does not exceed twenty-five per cent (25%)of either the FY 2018 GAAor the FY 2019 NEP. The reduced amount is equivalent tothe total amount of monthly service fees for the duration of the contract from April 1- Decemember 31,2019;

NOW, THEREFORE, We, the Members of the Bids and Awards Committee,hereby RESOLVEto recommend to the Head of the Procuring Entity, throughits duly authorized signatory, ERC Chairperson and CEO AGNES VSTDEVANADERA,to AWARDthe Contract for the "Procurement of Rental ofPhotocopying Services and Multi-Function Printer Services" under Lot No.2018-28 to Quartz Business Products Corporations for submitting theLowest Calculated Responsive Bid in the amount of Four Million One HundredEighty Three Thousand Two Hundred Pesos (PhP4,183,200.00), VAT inclusive.Considering that only nine (9) months remain of the current year, the ERC-BAClikewise RESOLVESto recommend to AWARDthe said Contract with the ContractPeriod starting from 01 April 2019 to 31 December 2019 and with the ContractPrice in the amount of Three Million One Hundred Thirty Seven ThousandFour Hundred Pesos (PhP3,137,400.00) VATInclusive. Accordingly, the ERCshall pay Quartz Business Products, Inc. the amount Three Hundred FortyEight Thousand Pesos (PhP348,600.00), VATInclusive, per month;

Pacific Center Building, San Miguel Avenue, Pasig City Trunk line: 689-5-372 (ERC)Mailing Address: P.O. Box 181 Greenhills, Metro Manila Fax Nos. 633-32-53 • 634-86-41Website: http://www.erc.gov.phlJi

BAC RESOLUTION NO.~, SERIES OF 2019 PBA RESr:;LUTION OF THE ENERGY REGULATORY COMMISSION BIDS AND AWARDS COMMITTEE (ERC-BAC) RECOMMENDING TOAWARD THE CONTRACT FOR THE PROCUREMENT OF RENTAL OF PHOTOCOPYING SERVICES AND MULTI-FUNCTION PRINTERSERVICES UNDER LOT NO. 2018-28 TO QUARTZ BUSINESS PRODUCTS, INC.

,MAR 2 6 Z019.RESOLVED at the ERC Main Office, Pasig City, this day of _

~ ~ev~MARIA CORAZ6N C. GINES

BAC Chairperson

JUDITH L~""TGOSINGBAC vic;Jl:;person

LEGARIO L. GALANG, JR.BACMember

MARINAA. CRUZ-BUGAYONGBACMember

BASILIA S. ELESBACM mber

Alternate Member:

TJYN CALATAv

Approved / DisapprovedFORAND BYAUTHORITY OF THE COMMISSION:

AGNESVSTDEVANADERAChairpe on and CEO IlJ

o Approved sapproved on: 01, M~lCd d-,CtqReason: 0 GPRA-IRR, §41.a. Prima facie collusion

o GPRA-IRR, §41.b. Failure to follow prescribed bidding procedureso GPRA-IRR, §41.c. Contract award will not benefit ERC

o §41.c. (i) project no longer physically and economically feasibleo §41.c. (ii) project no longer necessary

.~,! 0 §41.c. (iii) project fund has been withheld or reduce

~MI ACC/CLSG-BAC Resolution _, Series of 2019 PB

