subject : transmittal of contract between pms and …

PRESIDENTIAL MANAGEMENT STAFF Document Tracking System v4.12

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Doc. Control No: - Date Received: Date of Letter: Received from:

Subject: Contract between PMS and the Maximum Security and Services Corporatioi

DATE FROM TO INSTRUCTIONS

30 January 2020 LS GTS (ô f IPFM S-Accounting

and Budget Divisions BACSec.

COA LS

AMPS tA 2jw 3-

Due Date:

u1tce of tje PreMbent of t1j fjrttpptne PRESIDENTIAL MANAGEMENT STAFF

Malacanang

MEMORANDUM

FOR The Director, General and Transport Service

FROM : The Chief, Legal Division

SUBJECT : TRANSMITTAL OF CONTRACT BETWEEN PMS AND THE MAXIMUM SECURITY AND SERVICES CORPORATION

DATE 10 February 2020

As the designated end-user unit1, your office is hereby furnished a copy of the contract between PMS and the Maximum Security and Services Corporation for the procurement of security services for the PMS Central Office and its thirteen (13) Regional Field Units

For appropriate action. Thank you.

Cc: IPFMS Accounting Division IPFMS Budget Division BAC Secretariat Commission on Audit Legal Division Asset Management and Procurement Service

1 It is that unit or office which has direct supervision or administration over the implementation of the contract (cf., "Annex I', Item II par. 6 of the Revised Implementing Rules and Regulations of RA No. 9184).

SECURITY SERVICE CONTRACT

KNOW ALL MEN BY THESE PRESENTS:

This SECURITY SERVICE CONTRACT, executed and entered into this by and between:

The PRESIDENTIAL MANAGEMENT STAFF (PMS), a government agency under the Office of the President, created by virtue of Executive Order no. 130, series of 1987, with office address at the Automobile Association of the Philippines Tower, no. 683 Aurora Boulevard, Barangay Mariana, Quezon City, represented by Assistant Secretary ANA MARIA A. CADENA, hereinafter referred to as the "CLIENT";

-AND —

The MAXIMUM SECURITY AND SERVICES CORPORATION, a private corporation operating as Security Agency duly organized and existing by virtue of the laws of the Republic of the Philippines, with business and postal address at Unibond Building, 51h Floor Block 11 Lot 21 and 23, Sgt. Catulos Street, Barangay Immaculate Conception, Cubao, Quezon City, represented by its President and General Manager, HELEN C. AQUINO, and hereinafter referred to as the "AGENCY".

WITNESSETH

WHEREAS, the CLIENT is in need of the services of a security agency for its Central Office and its thirteen (13) Regional Field Units (RFUs);

WHEREAS, the AGENCY is a duly licensed security agency authorized to render security services pursuant to Republic Act no. 5487, otherwise known as "The Private Security Agency Law", as amended; and

WHEREAS, after the conduct of competitive public bidding for the procurement of security services, the CLIENT, through PMS-BAC Resolution no. 99 (s. 2019),1 awarded the Contract therefor to the AGENCY.

9 NOW THEREFORE, for and in consideration of the foregoing premises, the parties hereby agree as follows:

SECTION 1. The AGENCY shall provide the CLIENT the services of private security guards to secure, protect and guard the lives and properties of the CLIENT within and around the offices, premises and other compounds of the CLIENT under the AGENCY's guarding responsibilities, or even outside thereof if escorted by a guard or guards as stipulated in the CONTRACT.

SECTION 2. The AGENCY shall provide the CLIENT with sixty-nine (69) qualified, licensed, trained, uniformed, and armed security guards including CCTV operators and one (1) K9 dog handler or any number of additional guards as the CLIENT may require, to provide security protection in the PMS Central Office, PMS

1 Entitled "Recommending the Award of contract to the Maximum Security and Services corporation for the Procurement of Security Services for the PMS Central Office and Its Regional Field Units from 01 January to 31 December 2020."

- 060-01

i111L1

Contract between PMS and Maximum Security and Services Corporation for 2020... .Page 2 of 9

warehouse located at the Philippine Ports Authority and its RFUs in accordance with the Implementing Rules and Regulations of RA No. 5487, as amended, as well as with the Rules and Regulations of the Philippine National Police (PNP). To ensure that all the guards' posts are always manned during the time required, the AGENCY shall maintain and make available relievers and/or replacements when the need therefor arises. In case of shortage of relievers, the AGENCY shall have the option to extend the working hours of any guard at the premises to cover the post of an absent guard.

The security guards assigned by the AGENCY must be of good moral character, physically and mentally fit, in proper uniform and armed with a duly licensed firearm as specified by the CLIENT, with sufficient ammunitions at all times during their tour of duty.

The CLIENT agrees to provide the guards all the log-books or other materials that will be necessary for all recording purposes to be accomplished by them. However, the said log-books and other materials shall form part of the CLIENT's records.

SECTION 3. Prior to the assumption of duty, the security guards shall be required to submit to the CLIENT, through the AGENCY, the following:

Training certificate from Security Training Center accredited by the PNP-Security Agencies and Guard Supervision Division (SAGSD);

Security License issued by the PNP-SAGSD; Neuro-Psychiatric Clearance from PNP Centers and Hospital accredited by PNP-SAGSD; Drug Test Certificates/Clearances from Drug Testing Centers accredited by the PNP-SAGSD; PNP Intelligence Clearances (Dl) or NBI Clearances; and Licenses of Firearms and Restricted Land Mobile (RLM) certificates.

Copies of the foregoing documents duly authenticated or certified by the AGENCY may be subject to verification by the CLIENT at any time.

SECTION 4. The CLIENT may increase or decrease the number of security '3 guards posted in the AGENCY's premises, whenever

necessary, provided a written notice therefor is sent to the AGENCY. The increase or decrease in the contract price shall be subject to the corresponding adjustment as prescribed in Section 13 hereof. Toward this purpose, the AGENCY may conduct a security survey of the CLIENT's premises, and may periodically make similar surveys in the future without additional service fees or charges and recommend to the CLIENT measures that would be necessary to safeguard its premises, properties and interest.

The AGENCY shall not terminate any assigned security guard in any offices of the CLIENT without prior consultation with the

Contract between PMS and Maximum Security and Services Corporation for 2020.. ..Page 3 of 9

Assistant Secretary for Institutional Support (AS-IS) or the Director of the General and Transport Service (GTS).

Section 6. The CLIENT may have a security guard changed or replaced anytime whose work it finds or believes to be below standard, or whose conduct is unsatisfactory and/or prejudicial to the interest of the CLIENT. The judgment of the CLIENT on such matters shall be final and binding and should the AGENCY refuse, the former may consider the same as a valid cause for the termination of this CONTRACT.

SECTION 7. The AGENCY shall provide investigators to investigate any incident affecting the security of the CLIENT and shall act as its security consultant. The AGENCY shall also provide on its own expense, facilities for the investigation and solution of the security cases of the CLIENT as herein defined.

SECTION 8. The AGENCY shall at its own expense, make daily and periodic appropriate inspections of the security guards assigned to the CLIENT's premises and shall exercise discipline, control, supervision and administration over its security guards or personnel assigned to the CLIENT in accordance with the provisions of RA No. 5487 as implemented by the PNP-SAGSD. The CLIENT, through its duly authorized representative, shall have the right to observe the performance of the security guards or personnel of the AGENCY with the purpose of determining the quality of services being rendered by the AGENCY.

SECTION 9. The AGENCY shall be responsible for the proper conduct and performance of its security guards assigned to the CLIENT and shall be solely responsible for any act or omission by the said guards during their watch. The CLIENT shall be absolutely released from any liability to third persons arising from the act/s and/or omission/s of the AGENCY's security guards and personnel.

SECTION 10. The AGENCY shall assume full and immediate responsibility for loss or damage incurred by the CLIENT from theft, pilferage, robbery, and other unlawful acts committed within the premises and immediate surroundings being guarded by the security guards of the AGENCY, provided that there is indication of negligence or fault on the part of the security guard/s on detail, except when loss or damage are due to fortuitous events or "force majeure", or other acts beyond the control of any parties herein. If such loss has been recovered and damage been repaired, whatever amount remitted by the AGENCY to the CLIENT shall be correspondingly refunded to the AGENCY within a period of one (1) month from the date of such recovery/repair.

The term "force majeure" as employed herein shall mean acts of the public enemy, wars, blockades, insurrections, riots, epidemics, landslides, earthquakes, storms, lightning, floods, washouts, civil disturbances, explosions, and any other similar events, not within the control of either party which with the exercise of due diligence neither party is able to overcome.

06 0-03

I

Location Number Minimum Contract Rate er guard/per month of Day shift Night shift Day shift Night shift

Guards (8hrs) (8hrs) (12hrs) (12hrs) PMS Central Office

Relocation 30 P27,083.01 Area (P812,490.30)

9 P29,386.89 (P264,482.01)

3 P40,922.16 (P122,766.48)

2 P43,079.16 (P86,158.32)

RFUs Day shift Night shift (12 hours duty) (12 hours dy)

Region I - 2 P26,583.94 P28,047.57 Dagupan City Region II - 2 P27,791.82 P29,246.63 Tuguegarao Region III - 2 P31,052.75 P32,659.45 Pampanga Region IV-A - 2 P29,108.90 P30,607.15 CALABARZON

Region IV-B - 2 P25,045.37 P26,428.65 MIMAROPA Region V - 2 P24,276.09 P25,619.22 Legaspi City Region VII - 2 P30,044.28 P31,594.74 Cebu City Region IX - 2 P24,708.29 P26,075.50 Zamboanga City Region X - 2 P28,532.62 P29,998.75 Cagayan de Oro

Region XI - 2 P30,764.62 P32,355.26 Davao City Region XII - 2 P24,349.13 P25,696.27 General Santos Region XIII - 2 P24,501.41 P25,824.44 Butuan Region CAR - 2 P25,045.37 P26,428.65 Baguio City Total per 2,008,283.98 month Grand Total 70 P24,099.407.76

Contract between PMS and Maximum Security and Services Corporation for 2020... .Page 4 of 9

SECTION 11. The CLIENT, upon discovery of theft, robbery, property damages and other unlawful acts of stranger/s, shall immediately notify the AGENCY in writing of such theft, robbery, property damages or losses.

SECTION 12. Once the liability of the AGENCY is established, the CLIENT shall immediately bill the AGENCY for the value of the loss or damage, without prejudice to the CLIENT's right to forfeit the Performance Bond mentioned in Section 18 hereof, until the loss and/or damage suffered by the CLIENT shall have been fully compensated.

SECTION 13. For and in consideration of the services rendered by the AGENCY, the CLIENT shall pay the AGENCY based on the following schedule:

0

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Two Million Eight Thousand Two Hundred Eighty-Three Pesos and Ninety-Eight Centavos(P2,008,283.98) per month or a total of Twenty Four Million Ninety-Nine Thousand Four Hundred Seven Pesos and Seventy-Six Centavos (P24,099,407.76) for one (1) year, which shall be payable on or before the 5th day of every month, provided that in case the date of payment is a Saturday, Sunday or legal holiday, payment shall be made immediately on the following working day.

The AGENCY shall be paid within a reasonable time upon receipt by the CLIENT of the billing statement, daily time records of the security guards, certificate of services rendered and other documentary requirements.

Any change in the existing minimum wage rates, emergency cost of living allowances, SSS, Philhealth, Pag-ibig, and ECC Contributions by virtue of legislation, wage orders or the like shall cause a corresponding adjustment in the present contract price between the CLIENT and the AGENCY. However, to facilitate the release of the needed funds, the AGENCY must notify the CLIENT in writing within seven (7) days regarding such changes.

SECTION 14. The AGENCY shall provide two (2) security officers, namely: (a) one (1) detachment commander who shall, on a daily basis, at random hours, monitor the performance of the security guards assigned at the PMS Central Office; and (b) one (1) roving supervisor/inspector who shall regularly oversee the operations of the security guards deployed in the RFUs at no extra cost to the CLIENT.

The GTS shall regularly monitor the activities of the security personnel stationed thereat and shall submit to the Director, GTS a daily security report. A similar report shall also be submitted by the roving supervisor overseeing the operations of security guards deployed in the RFUs every 5th and 201h day of every month, or at any time as required by the GTS. Reports of the detachment commander/roving supervisor shall be submitted to the AGENCY for consolidation. The consolidated reports shall be submitted to the Director, GTS copy furnished the Assistant Secretary for Institutional Support.

SECTION 15. It is understood that this CONTRACT does not create an employer-employee relationship between the CLIENT and the security guards of the AGENCY, and that the services rendered by the said personnel are not considered and will not be accredited as government service.

SECTION 16. The AGENCY hereby warrants to fully comply with the provisions of the Labor Code, as amended, as well as other laws, rules and regulations pertaining to employment, including remittance to the proper government agencies of the full contributions being deducted by the AGENCY from its security personnel pursuant to existing laws, rules and regulation.

The AGENCY further undertakes to pay the security guards their salaries, emergency cost of living allowance, 13th month pay, 5-day annual leave incentive pay, night shift differential pay

O6U-O:i


for security guards assigned from 10:00 P.M. to 6:00 A.M. in accordance with the pertinent provisions of existing labor standard laws.

The AGENCY shall submit to the CLIENT's GTS within five (5) working days of every month a written report on payment of salaries and benefits, as well as remittances of contributions to SSS, Pag-IBIG and Phil-health deducted from its security personnel.

Implementation of this CONTRACT shall be in accordance with RA no. 5487,2 as amended, and the Implementing Rules and Regulations prescribed thereunder by the PNP Supervisory Office for Security and Investigation Agencies.

The AGENCY shall hold the CLIENT free and clear from:

Any liability course/s of action, and claim/s which may be filed by the security guards or any third person in connection with their employment under this Contract or under the provisions of the Minimum Wage Law, Workmen's Compensation Act, Memorandum of Agreement no. 1, Series of 1996 of the Philippine Association of Detective and Protective Agency Operators, and any labor or other laws which are now in effect or which hereafter be enacted;

Any and all responsibility for claim, injury, death or damage suffered by or caused by the security guard/s or personnel of the AGENCY arising out of or in the course of the performance of their functions, unless the security guard's injury, damage or death is due to the negligence of the CLIENT's personnel; and

Any and all liability for any personal injury or death caused by the AGENCY's security guard/s or personnel assigned to the CLIENT to any person or persons and damage to property or properties which are the sole obligation of the AGENCY.

SECTION 17. During the term of this CONTRACT, no official, employee, security guard, agent or representative of the AGENCY shall participate in any picketing within the premises of the CLIENT. In the event that any industrial dispute may arise or take place and that the personnel of the AGENCY are unable to perform their obligation herein defined, the CLIENT may unilaterally terminate this CONTRACT.

SECTION 18. The AGENCY shall allow its security personnel to participate in the CLIENT's disaster preparedness drills such as fire, earthquake, typhoon, and the like, and to provide the necessary telecommunication equipment appropriate under the circumstances.

SECTION 19. In order to guarantee the fulfillment of its obligations under this agreement, and to secure the payment of wages of all the AGENCY's security guards to be contracted pursuant to this

Entitled 'An Act to Regulate the Organization and Operation of Private Detective, Watchmen or Security Guards Agencies."

F' -

'3


CONTRACT, the AGENCY hereby agrees to put up a Performance Bond issued by the Government Service Insurance System (GSIS), surety or insurance company duly certified by the Insurance Commission as authorized to issue such security in favor of the CLIENT in the sum equivalent to Seven Million Two Hundred Twenty-Nine Thousand Eight Hundred Twenty-Two Pesos and Thirty-Two Centavos (P7,229,822.32) or equivalent to 30% of the total contract price for one (1) year to answer for the prompt and faithful compliance by the AGENCY of all its obligations under the contract and for all damages that may be sustained by the CLIENT by reason of the AGENCY's fault or negligence in its operation. Said bond shall be automatically forfeited in favor of the CLIENT in the following cases:

When the CLIENT terminates this CONTRACT before the expiration by reason of any violation by the AGENCY of any term or condition herein set forth; or

When the AGENCY is at fault.

The forfeiture of the bond shall be without prejudice to the CLIENT's right to enforce payment of unsatisfied liability or liabilities incurred by the AGENCY under this CONTRACT.

SECTION 20. The AGENCY hereby attests that its security guards to be deployed in the CLIENT's premises are not related within the third degree of consanguinity or affinity to the Head of the CLIENT; that they have not been previously dismissed from government service by reason of any administrative offense; and that they have not reached the compulsory retirement age.

SECTION 21. The AGENCY shall pay taxes in full and on time and that failure to do so will entitle the CLIENT to suspend payment for any goods or services delivered by the AGENCY, in line with the provisions of Executive Order no. 398, dated 12 January 2005, entitled "Directing Timely and Complete Payment of Taxes as a Precondition for Entering Into, and as a Continuing Obligation in Contracts with the Government, its Department, Agencies and

J Instrumentalities".

SECTION 22. The AGENCY shall pay taxes in full and on time and that failure to do so will entitle the CLIENT to suspend payment for any services rendered by the AGENCY.

SECTION 23

The AGENCY shall present to the CLIENT, within the duration of this CONTRACT, a tax clearance from the Bureau of Internal Revenue as well as copy of its income and business tax returns duly stamped and received by the BIR and duly validated with the tax payments thereon (Section 3 of EO no. 398).

The AGENCY shall provide the required security equipment and supplies listed in "Annex A" hereof.

The walkthrough detector and baggage x-ray/scanner shall be installed at the newly retrofitted PMS Building. The compact discs (CDs) of the surveillance monitor shall become the

06 0 -0/


property of the CLIENT, which shall have the right to store and erase the contents of the CDs.

SECTION 24. This CONTRACT shall take effect on 01 January to 31 December 2020. The CONTRACT may be terminated by the CLIENT either unilaterally or in case of violation of any provision in this CONTRACT, only after giving the AGENCY a 30-day notice in advance of such termination in writing.

SECTION 25. The AGENCY shall maintain a satisfactory level of performance throughout the term of this CONTRACT based on the following set of performance:

Quality of service delivered; Time management; Management and suitability of personnel; Contract administration and management; and Provision of regular progress report.

SECTION 26. The CLIENT shall conduct an assessment or evaluation of the performance of the AGENCY based on the set of performance criteria prescribed under Section 25 hereof. In case the AGENCY fails the assessment, the CLIENT may terminate the contract following the procedure prescribed under the Guidelines on Termination of Contracts issued by the Government Procurement Policy Board (GPPB) under Annex I Republic Act no. 9184 and its 2016 Revised Implementing Rules and Regulations.

SECTION 27. Any dispute arising from the implementation of this CONTRACT shall be submitted for arbitration in the City of Manila according to the provisions of Republic Act no. 876, as amended, otherwise known as the "Arbitration Law", provided, that by mutual agreement, the parties may agree in writing to resort to alternative modes of dispute resolution.

SECTION 28. In case of litigation/dispute not falling within the purview of RA no. 876, as amended, the parties agree that the exclusive venue of such action shall be in the proper court of the City of Manila.

SECTION 29. If any terms or conditions of this CONTRACT are held invalid or contrary to law, the validity of the other terms and conditions hereof shall not be affected thereby.

IN WITNESS WHEREOF, the parties through their duly authorized representatives, have hereunto signed and executed this CONTRACT in Quezon City Philippines this

PRESIDENTIAL MANAGEMENT STAFF

ANA MARIA A. CADENA Assistant Secretary fr-

MAXIMUM SECURITY AND SERVICES CORPORATION

MS. HELJ C. AQU!,NO President\

60 fl - U

SIGNED IN THE PRESE

Contract betwt:en PMS and Maximum Security and Services Corporation for 2020... .Page 9 of 9

CERTIFIED FUNDS / ALLOTMENT AVAILABLE ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES) City CITY )S.S.

JUL 1IRZ

OIC. Bc. .. '... C;u Account

Ref. Nc.O Amount __________

4 2112M N()Ü BEFORE ME, this FEB 07 ZO in cAl

personally appeared the following persons in the1ty as ASSISTANT SECRETARY of PMS, and PRESIDENT of MAXIMUM SECURITY AND SERVICES CORPORATION, respectively, with their corresponding valid identification cards, to wit:

Name Proof of Identity Issued on/at

ANA MARIA A. CADENA PMS ID No. 010

HELEN C. AQUINO

known to me and to me known to be the same persons who executed and signed the foregoing instrument which consists of nine (9) pages including this page and acknowledged to me that the same are of their free and voluntary act and deed.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal on the date and place above mentioned.

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MCLE (Exempt No.) VI-Ofli 54: fl2-27-I9

Doc. No. t03 Page No. Book No. ILL Series of 2020.

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B. DEPLOYMENT OF SECURITY EQUIPMENT 0

Communication Equipment

1.1/ Sixteen (16) units handheld radio - 1.2 Sixteen (16) pieces extra Battery pack

1.3 / Sixteen (16) Battery chargers with adaptor z

Firearms and Ammunitions

2:1 Six (6) units 9mm handgun with ammos 2.2 Seven (7) units .38 Cal. Rev, with ammos 2.3. Three (3) units 12 GA Shotgun with ammos

3.. Other Security Equipment 0

3.1.. Two (2) units handheld metal detector 3.2- One (1) unit Walkthrough metal detector

'

3.3 One (1) unit Motorcycle 3.4 K9 Dog with handler 3.5 One (1) unit Baggage x-ray/scanner

4.,' One (1) complete set of computer with printer

j' One (1) unit computer with camera 0.. -

18 One (1) unit 1-Terrabyte hardisk 0 9 tv&(2) Under Chassis mirror.

Flash lights (all guards) CG

3.11 Medical kit (all guards) 12-3.12 Tear Gas (all guards) 3.13 Night sficks/Batuta (all guards) / 4:

- 3.14 Two (2) sets traffic vest/gloves 3.15- Five (5) Big umbrellas 3.16 Two (2) search sticks 3.1.7 Rain coats (all guards) 3.18 Rain boots (all guards) 3.19 Log books, bond papers, stationery, ball pens

and other office supplies for security reports.

4. PMS Regional Field Units (RFUs)

4.1 Thirteen (13) units appropriate firearms WI ammos

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subject : transmittal of contract between pms and …

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