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Metropolitan Cebu Water District MCWD Janitorial Services

Purchase Requisition No. 26241-001

Republic of the Philippines

Metropolitan Cebu Water District Magallanes-Lapulapu Streets, Cebu City

TERMS OF REFERENCE FOR THE PUBLIC BIDDING OF JANITORIAL SERVICES

1. PREFACE

This Terms of Reference (TOR) supplements the contents of Section V.

Special Conditions of Contracts and Section VI. Schedule of Requirements, and

encloses that of Section VII. Technical Specifications of the Philippine Bidding

Documents (PBDs) for the Procurement of Goods and Services.

2. OBJECTIVE

This TOR aims to guide those interested to participate in the public

bidding for janitorial services procurement of Metropolitan Cebu Water District

(MCWD) in accordance with the provisions of Republic Act (RA) No. 9184

(Government Procurement Reform Act) and its Revised Implementing Rules and

Regulations (IRR) as well as GPPB Resolution No. 24-2007 as amended by GPPB

Resolution No. 03-2011.

3. LEGAL BASIS

Aside from conformity with Republic Act (RA) No. 9184 and its

Implementing Rules and Regulations as well as pertinent GPPB Resolutions,

conformity with Presidential Decree (PD) No. 442 (Labor Code of the

Philippines) and its Implementing Rules and Regulations, among others, is herein

mandated. These are among the legal basis of this procurement.

4. SCOPE AND DESCRIPTION OF SERVICE

The work to be undertaken by the AGENCY in this contract includes the

supply of labor, tools, equipment, and any other means necessary to complete all

works required to thoroughly clean, disinfect and perform facilities maintenance

of the interior and exterior of MCWD Main Building and Talamban Compound as

detailed in the Scope of Work and Supply (Annex “A”) and the Methodology of

Janitorial Services (Annex “B”).

4. COMMENCEMENT AND DURATION OF THE CONTRACT

The contract for janitorial services shall commence within thirty (30)

calendar days from Contractor’s receipt of Notice of Award. Its duration shall be

for a period of three (3) years.



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However, the same may be extended upon written agreement by both

parties subject to the provisions of R.A. 9184 or other existing laws, rules &

regulations.

5. APPROVED BUDGET OF THE CONTRACT

For the purpose of this public bidding in accordance with paragraph 5.1.2

of GPPB Resolution No. 24-2007 as amended by GPPB Resolution No. 03-2011,

the Approved Budget for the Contract (ABC) amounts at:

Per day/per janitor - FOUR HUNDRED EIGHTY-SIX

PESOS AND SEVENTY-TWO

CENTAVOS

(Php486.72)

ABC for one (1) Year - TWO MILLION SEVEN HUNDRED

FORTY- TWO THOUSAND

ONE HUNDRED EIGHTY

PESOS AND FORTY-EIGHT

CENTAVOS

(Php2,742,180.48)

Total ABC - EIGHT MILLION TWO HUNDRED

for three (3) Years TWENTY-SIX THOUSAND

FIVE HUNDRED FORTY-ONE

PESOS AND FORTY-FOUR

CENTAVOS

(Php8,226,541.44)

6. SERVICE PROVIDER (AGENCY)

The following are the minimum qualifications of JANITORIAL

AGENCY:

6.1 Has an office located within the service area of MCWD;

6.2 Has been engaged in the janitorial services for at least six (6) years

immediately prior to Bid Opening;

6.3 Filipino citizen or corporation, association, partnership, seventy-five

percent (75%) of which is owned and controlled by Filipino citizens;

6.4 Must neither be currently under suspension by MCWD nor blacklisted

by any government agency or office; and



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6.5 Must not have been adjudged liable with finality in any labor case for

the last three (3) years prior to Bid Opening.

7. EQUIPMENT, TOOLS & RESOURCES

7.1 Number, Kind and Ownership of Equipment and Tools

Please refer to Scope of Work and Supply (Annex “A”).

7.2 Number of Personnel

The AGENCY shall provide sixteen (16) janitors and 2 skilled workers

whose areas of assignment are provided in the table of Janitorial Services

Personnel Distribution (Annex “C”).

The two (2) skilled workers shall perform facilities maintenance and must

know of the following skills like masonry, carpentry, painting, welding, air

conditioning and electrical maintenance works. They shall be equipped with tools

and necessary Personal Protective Equipment (PPE).

8. RECRUITMENT AND SELECTION OF PERSONNEL

MCWD requires agency personnel with the following minimum

qualifications:

8.1 Filipino citizen;

8.2 At least second year high school;

8.3 Of legal age;

8.4 With good moral character and cleared by major law enforcement

agencies, and without any records of any conviction by final judgment

of a criminal offense involving moral turpitude; and

8.5 Drug free as attested by a drug test clearance.

9. OBLIGATIONS AND RESPONSIBILITIES OF THE JANITORIAL

AGENCY

The following are the obligations of the JANITORIAL AGENCY:

9.1 Deployment of Personnel. The JANITORIAL AGENCY shall deploy

to MCWD competent sixteen (16) janitors and two (2) skilled workers

to be assigned at MCWD main building and Talamban compound.



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9.2 Provision of Janitorial Equipment and Tools. The AGENCY shall

provide and maintain at their own cost the required service

equipment/tools indicated in the Scope of Work and Supply (Annex

“A”). All these must be in good and operational condition to ensure

that works will be performed timeously and in good standard.

9.3 Provision of Company Uniform and Personal Protective Equipment,

Warning Devices, Signages, Equipment and Tools. The AGENCY

shall provide company uniform, personal protective equipment (PPE),

warning devices, signages, equipment and tools necessary to perform

the day-to-day task of the janitors and skilled workers at the cost of the

Agency.

9.4 Conduct of Annual Trainings and Programs. The AGENCY shall

annually, at the least, provide trainings to its personnel to upgrade their

knowledge and skills and shall give MCWD the right to review and

evaluate them (programs).

9.5 Full Exclusive Obligation to Pay. The AGENCY shall assume full

exclusive obligation to pay the mandated wage provided for by laws to

its personnel, including claims and other compensation as may be

legally due them, and to promptly remit to the proper local agencies in

MCWD the required premiums and contribution for the benefit of the

janitors and skilled workers, such as withholding taxes on salaries,

Social Security System (SSS) premium, Philippine Health Insurance

Corporation (PhilHealth) contribution, Pag-IBIG contribution and the

like.

9.6 Wage Increases or Adjustment Notification. The AGENCY shall notify

or inform the MCWD in writing on such wage order / adjustment in

the event of wage increases or adjustments when mandated by law or

wage order after the execution of contract.

9.7 Conduct of Annual Random Drug Test. The AGENCY shall conduct

an annual random drug test to all personnel deployed to MCWD. The

AGENCY shall furnish MCWD a copy of the result.

9.8 Grant MCWD Right to Validate Janitorial Agency’s compliance to

Statutory Benefits. The AGENCY grants MCWD the right to conduct a

random checking of the personnel’s pay slips, SSS contribution and the

like to confirm or validate compliance by the AGENCY of minimum

wage and other statutory monetary benefits.

9.9 Assumption of Sole Responsibility on Labor related matters. Any and

all money claims of janitors and skilled workers arising out of their

employment with the AGENCY shall be solely assumed by the latter.



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The AGENCY expressly agrees and binds itself that MCWD

shall be protected and absolved from any labor case or problem as the

same shall be fully assumed solely and exclusively by the AGENCY.

9.10 Indemnify MCWD for Loss or Damage. The AGENCY shall assume

responsibility to compensate or indemnify MCWD for loss or damage

that may occur to MCWD properties during the performance of its

work and such damages are the result of the acts, omission, direct

negligence or fault of the personnel. Provided, it must be reported to

the Agency either orally or in writing within seventy-two (72) hours

from the time the same came to MCWD’s knowledge. After

investigation, deduction may be made from AGENCY’s amount

receivable from MCWD. However, the AGENCY shall not be held

responsible when such loss or damage was due to force majeure or

fortuitous event.

9.11 Reserved Personnel. The AGENCY shall have a pool of reserved

personnel to ensure the presence of adequate relievers whenever the

need arises.

9.12 Periodic Inspection. The AGENCY shall coordinate with MCWD

through its (MCWD) General Services Department (GSD) or

authorized representative to ensure the standard quality of cleaning

practice of all area of offices and facilities by conducting periodic

inspection. The Inspection Report shall be submitted every time the

AGENCY requested for billing.

10. OBLIGATIONS AND RESPONSIBILITIES OF MCWD

The following are the obligations of MCWD:

10.1 Payment for Services rendered. MCWD shall pay the JANITORIAL

AGENCY for the services rendered by its personnel.

10.2 Screen, Select, Accept and/or Reject Agency Personnel. MCWD shall

accept and/or reject AGENCY’S personnel in accordance with

MCWD’s preset criteria.

10.3 Conduct of Briefing/Orientation. MCWD, together with the

JANITORIAL AGENCY, shall conduct prior briefing/orientation of

the personnel, concerning the MCWD, its mission, organizational

structure, key officials, policies, including among others, their

(personnel’) wages and other benefits.

10.4 Supervision of MCWD. The JANITORIAL AGENCY’s personnel shall

be under the supervision of MCWD as regards compliance to MCWD

rules and regulations.



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10.5 Wage Increase. The prescribed increases in the wage rate of

AGENCY’s personnel, when mandated by law or wage order after the

execution of the appropriate janitorial service contract, shall be borne

by MCWD.

10.6 MCWD shall cause no janitor or skilled worker to render more than

eight (8) hours a day and/or more than forty (40) hours a week except

in cases of extreme necessity and only upon its (MCWD’s) prior

written request or permission.

11. RIGHTS OF MCWD

The following are the rights of MCWD, in addition to those in other

paragraphs found somewhere in this Terms of Reference and other documents

forming parts of this writing:

11.1 Right to Deduct/Withhold. To ensure indemnity or compensation on

the part of the MCWD for any loss or damage arising from the fault /

negligence of the AGENCY or its personnel, MCWD has the right to

automatically deduct or withhold any monies due or payable to the

AGENCY.

Further, in case the AGENCY is found to pay any personnel below the

minimum wage or fail to remit to the proper agencies the required

employer’s shares in the premiums or contributions, it (JANITORIAL

AGENCY) shall authorize MCWD to withhold from any money due to

it (JANITORIAL AGENCY) any amount owing to the SSS,

PhilHealth, Pag-IBIG, Bureau of Internal Revenue, the janitors and

skilled workers, among others.

11.2 Right to Require Replacement of Janitor. MCWD shall have the right

to require the AGENCY to replace its personnel whom it can no longer

trust or was found ineffective or inefficient in the discharge of his

duties based on MCWD’s findings. Replacement shall take effect

within twenty-four (24) hours from AGENCY’S receipt of the request.

This shall be without cost to MCWD.

11.3 Right to Conduct Spot Inspection. Although the janitors and skilled

workers are under the strict supervision of the Agency, MCWD

however, shall have the right to conduct spot inspection on the

performance of the said personnel at any time it may deem necessary.

This right shall neither diminish the obligations of the AGENCY nor

absolve it from liability for all the acts or negligence of its personnel.

12. EMPLOYER-EMPLOYEE RELATIONSHIP



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It is expressly understood that each and all personnel deployed/assigned by

the AGENCY to MCWD are considered employees of the AGENCY.

13. CONFIDENTIALITY

Unless authorized by MCWD, the AGENCY and its personnel shall not

use or disclose to any unauthorized person, firm or entity, any classified

information concerning the business affairs of MCWD which any member of the

AGENCY’s personnel may have acquired by reasons of contractual relationship

created under this janitorial service.

14. PAYMENT

The AGENCY hereby binds itself to pay its employees in accordance

with the provisions of pertinent laws and/or other legal issuances governing

janitorial services. The agency shall solely be responsible for the payment of

indemnities to its personnel which may arise under existing laws.

14.1 MCWD shall pay the AGENCY based on the contractual price

and the latter’s actual services rendered, taking into account, among others, the

actual number of personnel as well as their actual hour of services.

14.2 The AGENCY guarantees that the salaries of the personnel

assigned with MCWD shall be paid during the regular working hours not later

than the 20th day of the month and the 5th day of the following month.

14.3 The AGENCY shall bill MCWD for the janitorial services on a

monthly basis, on or before the 15th day of the following month.

In fine, MCWD pays the AGENCY after the latter has paid its

personnel assigned to the former.

14.4 To bill MCWD, the AGENCY shall submit Billing Statement

with the following attachments:

14.4.1 Personnel DTR individually prepared by employee and signed

by the Head of Office or authorized personnel;

14.4.2 Machine validated SSS remittances (R3 and/or R5) with

certification from the issuing agency;

14.4.3 Machine validated PHIC remittances (ME5 and/or RF) with

certification from the issuing agency;

14.4.4 Machine validated HDMF remittances (M1) with certification

from the issuing agency;

14.4.5 For manual payroll, signed pay slip;



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14.4.6 For ATM-based payroll, bank transmittal indicating the name

of each employee and the amount deposited to their account, subscribed and

sworn to, and a waiver from the AGENCY holding MCWD free from liability

against any claims from its personnel;

14.4.7 Copy of payroll summary of personnel duly signed by the

AGENCY’s representative; and

14.4.8 Spot Inspection Report signed by MCWD representative/s, and

AGENCY representative/s.

These shall be subject to usual accounting and auditing rules and

regulations and prior verification by MCWD.

14.5 It is understood that the AGENCY’s billing includes all the

statutory compensation and benefits due to its personnel assigned to MCWD.

In the event however that a competent authority orders the AGENCY to pay

any of those statutory compensation or benefits to its personnel, such money

claim shall be fully satisfied by the AGENCY as the employer of the latter.

14.6 In the event where some personnel are required to render

overtime as requested by MCWD and/or during special/regular holidays,

MCWD shall pay the required statutory remuneration.

14.7 No payment shall be made to the AGENCY for any

unauthorized and/or unilateral increase in the number of personnel assigned in

any other MCWD facilities, without the authority/approval of MCWD’s head

of office.

14.8 In the event of wage increases or adjustments mandated by law

or wage order after the execution of this contract, the service contract shall be

deemed amended accordingly. The AGENCY shall notify or inform MCWD

in writing on such wage order or adjustment.

14.9 The AGENCY hereby authorizes MCWD to withhold such

amount owing to the AGENCY as might be sufficient to satisfy its liability to

MCWD and/or persons as determined identified hereof. The authority shall

include any and all liabilities of the AGENCY to the MCWD in connection

with the service contract.

15. PERFORMANCE SECURITY

To guarantee the faithful performance of security services, the

JANITORIAL AGENCY shall post in favor of MCWD within the contract period,

a surety or performance security, according to the following schedule of

acceptable form and the corresponding required amount in percent of total

contract price:



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Form of Surety / Performance Bond

Minimum Amount in

Percentage (%) of the

Contract Price

1. Cash, certified check, cashier’s

check, manager’s check, bank

draft or irrevocable letter of

credit

Five percent (5%)

2. Bank Guarantee

3. Surety Bond Thirty percent (30%)

Regardless of the form of the performance security posted by the

AGENCY, it shall renew the yearly performance security one (1) month prior to

its expiration. In the event the AGENCY fails to do so, MCWD has the option to

renew the said security and to pay the premium in advance and automatically

deductible from the AGENCY’s billing or any money due to it.

In the execution of the performance security, the following conditions

shall be complied with:

15.1 It shall be executed in accordance with the form prescribed

therefore, and

15.2 It shall be at least one (1) year in duration and to be renewed yearly

by the AGENCY one (1) month prior to its expiration. After such

renewal, original copy of the policy should be submitted

immediately to MCWD.

16. PERFORMANCE EVALUATION

MCWD shall conduct an assessment or evaluation of the performance of

the janitorial agency (winning bidder) based on the Spot Inspection Report before

the end of each year, at the least, or oftener.

The agency (winning bidder) shall maintain a satisfactory level of

performance throughout the term of the contract based on the prescribed criteria.

Otherwise, based on the assessment, MCWD may pre-terminate the contract for

failure by the janitorial agency (wining bidder) to perform its obligations

following the procedure prescribed under the Guidelines on Termination of

Contracts issued by the Government Procurement Policy Board (GPPB) under

Resolution No. 018-2004 dated December 22, 2004 as amended by Resolution

No. 03-2011.

17. TERMINATION OR REVOCATION OF CONTRACT

Unless extended, the janitorial services contract shall be terminated at the

lapse of the period of three (3) years.



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For contract termination due to reasons other than expiration of contract

duration, the procedure prescribed under the Guidelines on Termination of

Contracts issued by the Government Procurement Policy Board (GPPB) under

Resolution No. 018-2004 dated December 22, 2004 as amended by Resolution

No. 03-2011 may be followed.

Except those that are expressly provided by law, the right and obligations

of the parties are defined and governed by the terms and conditions of the

contract. Any violation shall be ground for termination of contract.

The following constitute ground for revocation/termination of contract:

17.1 In the event that MCWD is ordered by a competent authority to

pay money claims to personnel, the AGENCY binds itself to reimburse the

MCWD the amount it actually paid within thirty (30) days from its (MCWD)

notice and demand. Failure on the part of the agency to pay such demand within

the afore-stated period shall be a ground for a unilateral termination of contract by

MCWD and forfeiture of performance security in accordance with Republic Act

(R.A.) 9184 and its Implementing Rules and Regulations (IRR).

17.2 In addition to MCWD’s right to withhold payment from the

AGENCY if it fails to pay the loss and damage to MCWD properties it had

suffered, the same shall constitute a valid cause for the outright termination of the

services of the JANITORIAL AGENCY. In case the amount withheld is not

sufficient to answer the loss or damage that MCWD suffered, then it (MCWD)

shall have the right to use and collect from the performance security placed by the

AGENCY.

17.3 Violation by the AGENCY of labor standards applicable to its

employees or non-remittance of the personnel’s statutory deductions such as SSS,

PAG-IBIG, among others, shall constitute a ground for unilateral revocation of the

contract by MCWD. To ensure that the MCWD will not be held jointly liable for

violation of the labor standard law of the personnel and the withholding tax

requirement of the Bureau of Internal Revenue (BIR), the AGENCY shall furnish

and submit to MCWD, a copy of its monthly remittance and payment of the

employees’ SSS, PhilHealth, Pag-ibig & BIR withholding taxes contributions and

this will form part of the monthly billing statement. The monthly remittance

requirement shall be exclusive for the remittances of the statutory deductions for

the personnel who are assigned or deployed by the MCWD.

17.4 The MCWD, however, has the right to terminate this Contract

at any time before the end of its term under any or all of the following

circumstances:

17.4.1 Willful violation by the AGENCY of its obligation under the

Contract;

17.4.2 Failure of the Agency to comply with the provisions of RA No.

5487, as amended, and PD 442 (Labor Code of the

Philippines), as amended, and other related laws;



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17.4.3 Discovery of any fraud, falsification or misrepresentative in

any of the documents submitted by the AGENCY during the

accreditation or eligibility check by the AGENCY;

17.4.4 Violation of the applicable provisions of GPPD Resolution No.

018-2004 dated December 2004.

Termination due to unsatisfactory performance for three (3) consecutive

months.

18. PENAL CLAUSE

Schedule of violations and penalties are provided. This is in addition to

those provided somewhere in this writing. Please refer to Schedule of Penalties

(Annex “D”).

19. ASSIGNMENT OF RIGHT

The AGENCY shall have no right to assign or otherwise transfer in any

manner whatsoever its right, interest and obligation under the janitorial service

contract or any parts thereof without the prior approval of MCWD.

20. BID REQUIREMENTS

In addition to the requirements enumerated in the Bidding Documents [Section

II. Instructions to Bidders (12.1)], the following are also required:

Technical Requirements

20.1 Proof of ownership of or right to use a Business Office;

20.2 Notarized List of Clients within the prior three (3) with

Contract Duration;

20.3 Certification for Satisfactory Service from not more than three

(3) clients, within the past three (3) years prior to the Bid Opening, with

corresponding addresses and contact numbers;

20.4 Copy of the latest submitted accomplished forms as follows: a)

SSS Contribution Collection (SSS R-3 Form), and if applicable and when

necessary with SSS Employment Report (SSS R-1A Form); and equivalent

forms required by b) Home Development Mutual Fund (Pag-IBIG Fund) & c)

Philippine Health Insurance Corporation;

20.5 Bureau of Internal Revenue Registration Certification;



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20.6 Certification from National Labor Relations Commission

(NLRC) to the effect that the AGENCY has not been adjudged liable in any

labor case which has already been decided with finality for the past three (3)

years;

20.7 Sworn statement to the effect of that the AGENCY has no

pending case against MCWD;

20.8 Updated Certification under Oath that the Bidder complies with

Labor Laws and Standards and other Social Legislation such as those of the

Department of Labor and Employment (DOLE), SSS, Phil. Health and Pag-

IBIG as specified under GPPB Circular No. 01-2008;

21. FINANCIAL PROPOSAL

The Financial Proposal shall contain a breakdown of all costs using the form

(Annex “E) provided for Janitorial Service Contract for MCWD.

22. BID PRICE

Bid prices shall be fixed and shall not be adjusted during contract

implementation, unless the law requires otherwise.

23. VENUE OF ACTIONS

Any and all actions relating to the bidding or contract, which any party may

brought, shall be instituted exclusively before the appropriate court in the City of

Cebu, Philippines and not anywhere else.

24. NOTICES

Any notice required to be served hereunder shall be deemed sufficient if given

by facsimile, personal service or through a reputable international courier,

addressed as indicated below.

In the case of Procuring Entity:

METROPOLITAN CEBU WATER DISTRICT

MCWD Main Office

Magallanes - Lapu-lapu Streets

Cebu City, Cebu

Attention: Head, BAC Secretariat

In the case of the Service Provider:

[to be inserted at the time of contract award]



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JANITORIAL AGENCY’S NAME Corporate Address

Attention: AUTHORIZED REPRESENTATIVE

Designation

25. ANNEXES

Annex “A”: Scope of Work and Supply

Annex “B”: Methodology

Annex “C”: Personnel Distribution

Annex “D”: Schedule of Penalties

Annex “E”: Financial Form