SUPPLEMENTAL/BID BULLETIN
Addendum No. 1
This Bid Bulletin is issued to inform prospective Bidders of some changes and/or modifications introduced by the Bids and Awards Committee pursuant to the letter by the end-user dated July 31, 2024 for the requirements “To furnish labor for Janitorial Services and to provide cleaning tools, equipment and chemicals to clean and to maintain the offices, comfort rooms, lobbies and corridors of the different offices and facilities of the Provincial Government of Negros Oriental for 26 days a month for Sixty (60) personnel to perform duties from August 16 to December 31, 2024” under Bid No. B-255-2024 with an ABC of ABC:P4,981,918.50.
Notice is hereby given that all prospective bidders are reminded to take note of the following item that need to be considered in preparing their Distribution Cost of the abovementioned project, viz:
- Philhealth Contribution – Formula used is Ave. Pay per Month x 5%/12
- Retirement Benefit – Formula used is DW 22 divide by 12
- There is no requirement for the minimum (percentage) of administrative fee as a component of the total contract const. Prospective bidders, however, are reminded to strictly comply with all the relevant labor rules and regulations.
The Government Procurement Policy Board (GPPB), in NPM No. 120-2016 clarified that “similar to the 10% administrative fee imposed under Section 9(b)(ii) of DOLE DO No. 18-A, the 20% administrative fee provided for under Section 4 of DOLE DO No. 150-16 is also a percentage rate that has for its effect the fixing of a floor price on Service Agreements. In this regard and following the position of the Government Procurement Policy Board (GPPB) as stated and explained in the following GPPB issuances, namely: GPPB Resolution (Res.) No. 14-2012 dated 1 June 2012; GPPB Res. No. 14-2015 and GPPB Circular No. 04-2015, both dated 30 April 2015; and Policy Matter Opinion Nos. 03-2012 dated 30 November 2012 and 02-2013 dated 11 April 2014, as well as the case of Philippine Sports Commission, et. Al. vs. Dear John Services, Inc. (G.R. No. 183260 dated 4 July 2012), [GPPB is] of the opinion that Section 4 of DOLE DO No. 150-16, insofar as it impose a minimum administrative fee of 20% of the total contract cost, likewise runs counter to the provision of Section 31 of Republic Act No. 9184 and its 2016 Revised Implementing Rules and Regulations”.
Bidders are enjoined to take note and consider the above mentioned distribution cost in the preparation of their bids.
For the information and guidance of all concerned.
Issued this 31st day of July, 2024.
ARTHUR FRAN P. TOLCIDAS
BAC Chairman