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CONTRACT AGREEMENT FOR SECURITY SERVICESContract No. RO-PG2017-004

This Agreement is executed between:

METROPOLITAN WATERWORKS AND SEWERAGE SYSTEM (MWSS), a governmentcorporation duly organized and existing under and by virtue of R.A. 6234, as amended, withprincipal business office at Katipunan Road, Balara, Quezon City, Metro Manila, through itsREGULATORY OFFICE, herein represented by its Chief Regulator, JOEL C. YU, dulyauthorized for this purpose by the MWSS Board of Trustees by virtue of a Board Resolution No.2017-76-RO hereto attached, (hereinafter called "the MWSS RO");

-and-

MASADA SECURITY AGENCY, INC., with principal business office at Room 310 SenorIvan De Palacio Bldg., 139 Malakas St., Corner Matalino St., Diliman, Quezon City, MetroManila, herein represented by its President/General Manager, LT. COL. JOSE M. SOMBILLO(RET.), by virtue of a Secretary's Certificate and a Board Resolution No. 06, series of 2017,hereto attached as part of the Bid, and (hereinafter called "MASADA").

ANT E C E DEN T S:

The MWSS RO is in need of a security contractor for the purpose of deploying licensed securityguards to safeguard and protect its office premises, properties, equipment, facilities, andconfidential information within its premises, against any and all unlawful acts by strangers orthird persons.

The security services engaged in this Agreement shall also cover the necessary security andsafety measures for all RO officers, employees and its visitors transacting legitimate business inthe MWSS RO premises;

The MWSS RO Bids and Awards Committee (MWSS RO BAC) advertised the procurement ofSecurity Services Contract No. RO-PG2017-004, on 04 May 2017 wherein two (2) prospectivecontractors submitted their bids;

In the bidding duly conducted, MASADA was declared the Lowest Calculated and ResponsiveBidder that meets the standards ofMWSS RO and complies with the Eligibility, Technical, andFinancial Requirements;

The MWSS RO has accepted the bid of MASADA amounting to One Million Two HundredSixty Six Thousand One Hundred Ninety One and 82/100 Pesos Only (Php 1,266,191.82)under the terms and conditions set forth in the Bidding Documents and herein below specified;

The MWSS Board of Trustees (MWSS-BOT) approved the award of the Procurement ofSecurity Services Contract No. RO-PG2017-004 to MASADA through MWSS-BOT ResolutionNo. 2017-76-RO.

ACCORDINGLY the parties agree as follows:

1. In this Agreement, words and expressions shall have the same meaning as are respectivelyassigned to them in the Conditions of Contract;

2. The following documents shall be deemed to form and be read and construed as part of thisAgreement, viz.:

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a) MWSS BOT Resolution No. 2017-029-RO approving the Terms of Reference (TOR) andthe Approved Budget for the Contract (ABC);

b) Terms of Reference;

c) Certificate of Availability of Funds;

d) Bidding Documents containing the following:

Section 1. Invitation to Bid;Section II. Instructions to Bidders;Section III. Bid Data Sheet;Section IV. General Conditions of Contract;Section V. Special Conditions of Contract;Section VI. Schedule of Requirements;Section VII. Technical Requirements; andSection VIII. Bidding Forms.

e) Bid Bulletin No. 01;

f) The supplier's winning bid comprising of the following:

1. Eligibility and Technical Bid;2. Financial Bid/Proposal;3. Other documents/statements submitted (e.g. bidder's response to clarifications on the

bid): Letter of Query from MASADA, dated 15 May 2017;4. Corrections to the bid resulting from the Procuring Entity's bid evaluation; Abstract

and Calculation of Bids; and

g) RO-BAC Resolution declaring the bid of MASADA as the Lowest Calculated andResponsive Bid.

h) MWSS BOT Resolution No. 2017-76-RO approving the award and Authorizing the ChiefRegulator to enter into Agreement with MASADA;

i) The MWSS RO's Notice of Award; and

j) Performance Security.

3. The MWSS RO shall pay MASADA the total amount of One Million Two Hundred SixtySix Thousand One Hundred Ninety One and 82/100 Pesos Only (Php 1,266,191.82) inthe manner and in accordance with Section VI, Schedule of Requirements, and Item NO.6Administrative and Billing Requirements of Section VII, Technical Specifications of theBidding Documents;

4. In consideration of the payments to be made by the MWSS RO to MASADA as hereinaftermentioned, MASADA hereby covenants with the MWSS RO to provide the goods andservices, and to remedy defects therein in conformity in all respects with the provisions of theContract;

5. The MWSS RO hereby covenants to pay MASADA in consideration of the provision of theservices and the remedying of defects therein, the Contract Price or such other sum as maybecome payable under the provisions of the contract at the time and in the manner prescribedby the contract;

01 AI.\3c.l'st 20116. This agreement shall be for a period of one (1) year, to commence on the date as

stipulated in the Notice to Proceed (NTP) up to a twelve (12) months period. The MWSSRO shall have the option to renew this Agreement for another year, subject to a maximum ofthree (3) years in total. However, extension of this contract may be allowed subject toAppendix 24 - Revised Guidelines on the Extension of Contracts for General Support

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Services of the Implementing Rules and Regulations (IRR) of RA 9184 otherwise known asthe "Government Procurement Reform Act";

7. Should the contract be renewed in the succeeding year, the amount of the ABC must beequivalent to the cost of the first year contract on the basis of the awarded monthly rate persecurity guard and shall not be adjusted during the contract implementation, except forincrease in minimum daily wage pursuant to law or new wage order issued after date ofbidding, increase in taxes, and if during the term of the contract, the MWSS RO sees theneed for an increase or decrease in the number of security guards. Should any of theforegoing exceptions occur during the implementation of the contract, the increase in costmust not exceed the ABC of the relevant year. Provided, further, that in no case shall beincreased in the ABC of the succeeding year to accommodate the adjustment, exceed fifteenpercent (15%) of the prior year;

8. It is understood that no employer-employee relationship shall exist between MWSS RO andemployees of MASADA and that MASADA assumes all responsibilities for its ownemployees;

SIGNED by the parties on 2017 at Quezon City, Philippines.

MWSS REGULATORY OFFICEBy:

MASADA SECURITY AGENCY, INC.By:

'~~~u<vief RegUlatoU

qt:;q -~. Signed in the Pres nc:;;e~"'ff'l-7"_

Republic of the Philippines)Quezon City ) S. S.

BEFORE ME II d, persona iy appeare

Name Identification Document DatelPlace Issued

JOELC. YUDriver's License No. N04-87-

Representing MWSS Regulatory Office 046474 13 January 20171 Quezon City

LT. COL. JOSE M. SOMBILLO (RET.) D(i~e("!t Lice-nCe No· CUID - "7D-K \lvly 1-o1v/ GvGl,on CJ~Representing MASADA Security Agency, 002.\132

Inc.

They are known to me to be the same persons who executed the foregoing Contract with appendices and theyacknowledged to me that their signatures confirm their voluntary acts and of the corporations they represent. Theywere identified by me through competent evideli!~ of identity as defined in the 2004 Rules on Notarial Practice(A.M. No. 02-8-13-SC). 11.~\\'

. \\)\.. ~SIGNED and SEALED on J at Quezon Ci .

Notary Publ~Doc. 7=:Page ~:Book ~;Series of2017.

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