MEMORANDUM OF AGREEMENT

T 's ME •RANDUM OF AGREEMENT is made and entered into this 3 day of

(n3 _4. 2016 by and between:

The TECHNICAL
TECHNICAL EDUCATION AND SKILLS DEVELOPMENT AUTHORITY (TESDA)
a national government agency created and existing under and by virtue of Republic Act
No. 7796, with principal address at TESDA Complex, East Service Road, South Luzon
Expressway, Taguig City, Metro Manila, Philippines, represented herein by its Director
General, SEC. GUILING A. MAMONDIONG, and hereinafter referred to as the "FIRST
PARTY";

and —

ACMI OFFICE SYSTEM PHILIPPINES, INC., a private business entity, registered

under the laws of the Republic of the Philippines with business address at 268-A N.
Domingo St., Barangay Pasadena, San Juan City, herein represented by its President,
MR. RICHARD ANTHONY S. NGUI, and hereinafter referred to as the "SECOND
PARTY".

— WITNESSETH

WHEREAS, the FIRST PARTY through its Bids and Awards Committee (BAC)
issued and posted an Invitation to Apply for Eligibility and to Bid (IAEB) in the Philippine
Star and in the Philippine Government Electronic Procurement System (PhilGEPS) on
10 May 2016 in compliance with Section 21 of the Revised Implementing Rules and
Regulations of Republic Act No. 9184, otherwise known as the Government
Procurement Reform Act, for the procurement of starter toolkits for the Special Training
for Employment Program (STEP) for FY 2016 — Phase II;

WHEREAS, during the bid opening, the SECOND PARTY was the lone bidder
which was declared to be eligible to bid since it was able to comply with the eligibility
requirements as prescribed by Sections 23 and 25 of the Revised Implementing Rules
and Regulations of Republic Act No. 9184;

WHEREAS, the bids of the SECOND PARTY for the following lots/qualifications
have satisfactorily passed the legal, financial and technical requirements set forth by
Republic Act No. 9184 and the bidding documents:

LOT QUALIFICATIONS AMOUNT OF BID

NO. ;‘
1 Produce Organic Vegetable (Leading to Organic Php205,200.00
Agriculture Production NC II)

2 Raise Organic Chicken (Leading to Organic Agriculture Php107,000.00

Production NC II)

3 Raise Small Ruminants (Leading to Animal Productions Php50,610.00

NC II)

4 Raise Swine (Leading to Animal Production NC II) Php121,800.00

1
LOT QUALIFICATIONS AMOUNT OF BID
NO.
5 Perform Diesel/Gas Engine Tune Up • Php4,579,890.00
(Leading to Automotive Servicing NC I)

6 Perform Preventive Maintenance On Motorcycle Php8,138,520.00

Mechanical and Electrical System (Leading to
Motorcycle/Small Engine Servicing NC II)

7 Perform Underchassis Preventive Maintenance Php398,840.00

(Leading to Automotive Servicing NC II)

8 Service Automotive Battery Php632,700.00

(Leading to Automotive Servicing NC II)

9 Service Automotive Electrical Php1,661,520.00

(Leading to Automotive Servicing NC II)

10 Service Engine Mechanical Components Php3,191,960.00

(Leading to Automotive Servicing NC II) 1 ,

11 Service Ignition System (Leading to Automotive Servicing Php1,041,590.00

NC II)

12 Service Power Train Components Php71,100.00

(Leading to Automotive Servicing NC II)

13 Service Small Engine System and Components (Leading Php7,520,500.00

to Motorcycle/Small Engine Servicing NC II)

14 Test and Repair Wiring & Lighting System (Leading to Php754,020.00

Automotive Servicing NC II)

15 Carpentry NC 11 Php1,565,100.00

16 Construction Painting NC II Php719,680.00

17 Install Pre-Cast Balusters and Handrail Filip253,920.00

(Leading to Masonry NC II)

18 Install Wiring Devices/Install Lighting System (Leading to Php9,863,170.00

Electrical Installation and Maintenance NC II)

19 Masonry NC I Php1,661,520.00

20 Perform Single Unit Plumbing Installation and Repair Php788,400.00

Maintenance Work (Leading to Plumbing NC II)

21 Pipefitting NC 11 Php425,400.00

22 Plaster Concrete/Masonry Surface (Leading to Masonry Php535,440.00

NC II)

23 Tile Setting NC II Php1,616,250.00

2
LOT QUALIFICATIONS AMOUNT OF BID
NO.
24 Maintain and Repair AudioNideo Products and Systems Php400,400.00
(Leading to Consumer Electronics Servicing NC II)

25 Maintain and Repair Electronically-controlled Domestic Php972,400.00

Appliances (Leading to Consumer Electronics Servicing
NC II)

26 Maintain and Repair Cellular Phones Php1,139,905.00

(Leading to Consumer Electronics NC II) ' •
1 .
27 Dressmaking NC II Php4,923,400.00

28 Tailoring NC II Php239,000.00

29 Hilot (Wellness Massage) NC II Php5,672,676.00

30 Perform Body Massage (Leading to Beauty Care NC II) Php733,392.00

31 Perform Facial Make-Up (Leading to Beauty Care NC II) Php626,290.00

32 Perform Facial Treatment (Leading to Beauty Care NC II) Php1,100,125.00

33 Perform Foot Spa (Leading to Beauty Care NC II) Php754,000.00

35 Perform Manicure and Pedicure (Leading to Beauty Care Php634,846.00

NC II)

36 Perform Haircutting Services (Leading to Hairdressing Php1,191,100.00

NC II)

37 Perform Hair Coloring/Bleaching Services (Leading to Php584,200.00

Hairdressing NC II)

38 Perform Hair Perming and Straightening (Leading to Php875,700.00

Hairdressing NC II)

39 RAC Servicing DOM/RAC NC II Php1,159,400.00

40 Troubleshoot and Repair Transport Airconditioning Php501,160.00

System (Leading to Transport RAC Servicing NC II)

41 Service and Maintain Transport Airconditioning Unit Php411,400.00

(Leading to Transport RAC Servicing NC II)

42 Shielded Metal Arc Welding (SMAW) NC I Php26,219,200.00

43 Process Food by Salting, Curing and Smoking Php2,456,800.00

(Leading to Food Processing NC II)

44 Process Foods by Fermentation and Pickling Php822,000.00

(Leading to Food Processing NC II)

45 Process Foods by Sugar Concentration Php938,000.00

(Leading to Food Processing NC II)

3
LOT QUALIFICATIONS AMOUNT OF BID
NO.
46 Bread Making (Leading to Bread and .Pastry. Production Php8,250,500.00
NC II)
1 ,
47 Cake Making (Leading to Bread and Pastry Production Php3,889,600.00
NC II)

48 Pastry Making (Leading to Bread and Pastry Production Php7,021,300.00

NC II)

49 Prepare and Cook Hot Meals (Leading to Cookery NC II) Php4,840,940.00

50 Prepare Cold Meals (Leading to Cookery NC II) Php2,947,010.00

51 Service Consumer Electronic Products and Systems Php1,436,600.00

(Assembly of Solar Nightlight and Post Lamp)

TOTAL Php126,645,474.00

WHEREAS, after post-qualification prescribed by Section 34 of the Revised

Implementing Rules and Regulations of Republic Act No. 9184, the bids offered by the
SECOND PARTY on the abovementioned lots/qualifications had been found to be the
most responsive bids;

WHEREAS, pursuant to Section 34.4 of the Revised Implementing Rules and

Regulations of Republic Act No. 9184, the recommendation to award the contract in
favor of the SECOND PARTY pertaining to the abovementioned lots/qualifications
through BAC Resolution No. 15-2016 issued on 27 June 2016 had been elevated by the
Director General to the TESDA Board for approval;

WHEREAS, the TESDA Board approved the award of contract to ACMI Office
System Philippines, incorporated in the total amount of One Hundred Twenty-Six
Million Six Hundred Forty-Five Thousand Four Hundred Seventy-Four Pesos
(Php126,645,474.00) through Board Resolution No. 2016-12 dated 21 September 2016
for the following lots/qualifications:

LOT QUALIFICATIONS AMOUNT OF BID

NO.
1 Produce Organic Vegetable (Leading to Organic Php205,200.00
Agriculture Production NC II)

2 Raise Organic Chicken (Leading .to Organic Agriculture Php107,000.00

Production NC 11)

3 Raise Small Ruminants (Leading to Animal Productions Php50,610.00

NC II)

4 Raise Swine (Leading to Animal Production NC II) Php121,800.00

5 Perform Diesel/Gas Engine Tune Up Php4,579,890.00

(Leading to Automotive Servicing NC I)
. .

4
LOT QUALIFICATIONS AMOUNT OF BID
NO.
6 Perform Preventive Maintenance On Motorcycle Php8,138,520.00
Mechanical and Electrical System (Leading to
Motorcycle/Small Engine Servicing NC II)

7 Perform Underchassis Preventive Maintenance Php398,840.00

(Leading to Automotive Servicing NC II)

8 Service Automotive Battery Php632,700.00

(Leading to Automotive Servicing NC II)

9 Service Automotive Electrical Php1,661,520.00

(Leading to Automotive Servicing NC II)

10 Service Engine Mechanical Components Php3,191,960.00

(Leading to Automotive Servicing NC II)

11 Service Ignition System (Leading to Automotive Servicing Php1,041,590.00

NC II)

12 Service Power Train Components Php71,100.00

(Leading to Automotive Servicing NC II)

13 Service Stha11 Engine System and Components (Leading Php7,520,500.00

to Motorcycle/Small Engine Servicing NC II)

14 Test and Repair Wiring & Lighting System (Leading to Php754,020.00

Automotive Servicing NC II) •

15 Carpentry NC II Php1,565,100.00

16 Construction Painting NC II Php719,680.00

17 Install Pre-Cast Balusters and Handrail Php253,920.00

(Leading to Masonry NC II)

18 Install Wiring Devices/Install Lighting System (Leading to Php9,863,170.00

Electrical Installation and Maintenance NC II)

19 Masonry NC I Php1,661,520.00

20 Perform Single Unit Plumbing Installation and Repair Php788,400.00

Maintenance Work (Leading to Plumbing NC II)

21 Pipefitting NC II Php425,400.00
•
22 Plaster Concrete/Masonry Surface (Leading to Masonry Phpp35,440.00
NC II)

23 Tile Setting NC II Php1,616,250.00

24 Maintain and Repair AudioNideo Products and Systems Php400,400.00

(Leading to Consumer Electronics Servicing NC II)

5
LOT QUALIFICATIONS AMOUNT OF BID
NO.
25 Maintain and Repair Electronically-controlled Domestic Php972,400.00
Appliances (Leading to Consumer Electronics Servicing
NC II)

26 Maintain and Repair Cellular Phones Php1,139,905.00

(Leading to Consumer Electronics NC II)

27 Dressmaking NC II Php4,923,400.00

28 Tailoring NC II Php239,000.00

29 Hilot (Wellness Massage) NC II Php5,672,676.00

30 Perform Body Massage (Leading to Beauty Care NC II) Php733,392.00

31 Perforim Facial Make-Up (Leading to Beauty Care NC II) Php626,290.00

32 Perform Facial Treatment (Leading to Beauty Care NC II) Php1,100,125.00

33 Perform Foot Spa (Leading to Beauty Care NC II) Php754,000.00

35 Perform Manicure and Pedicure (Leading to Beauty Care Php634,846.00

NC II)

36 Perform Haircutting Services (Leading to Hairdressing Php1,191,100.00

NC II)

37 Perform Hair Coloring/Bleaching Services (Leading to Php584,200.00

Hairdressing NC II)

38 Perform Hair Perming and Straightening (Leading to Php875,700.00

Hairdressing NC II)

39 RAC Servicing DOM/RAC NC II Php1,159,400.00

40 Troubleshoot and Repair Transport Airconditioning Php501,160.00

System (Leading to Transport RAC Servicing NC II)

41 Service and Maintain Transport Airconditioning Unit Php411,400.00

(Leading to Transport RAC Servicing NC II)

42 Shielded Metal Arc Welding (SMAW) NC I Php26,219,200.00

43 Process Food by Salting, Curing and Smoking Php2,456,800.00

(Leading to Food Processing NC II)

44 Process Foods by Fermentation and Pickling Php822,000.00

(Leading to Food Processing NC II)

45 Process Foods by Sugar Concentration Php938,000.00

(Leading to Food Processing NC II)

46 Bread Making (Leading to Bread and Pastry Production Php8,250,500.00

NC II)

6
LOT QUALIFICATIONS AMOUNT OF BID
NO.
47 Cake Making (Leading to Bread and Pastry Production Php3,889,600.00
NC II)

48 Pastry Making (Leading to Bread and Pastry Production Php7,021,300.00

NC II)

49 Prepare and Cook Hot Meals (Leading to Cookery NC II) Php4,840,940.00

50 Prepare Cold Meals (Leading to Cookery NC II) Ph p2,947,010.00

51 Service Consumer Electronic Products and Systems Php1,436,600.00

(Assembly of Solar Nightlight.and Post Lamp)

TOTAL Ph pl 26,645,474.00

NOW, THEREFORE, for and in consideration of the foregoing, this Agreement is

entered into by and between the FIRST PARTY and the SECOND PARTY with the
following covenants, to wit:

GENERAL PROVISIONS:

1 The SECOND PARTY shall supply and deliver all the items prescribed in
the bidding documents and verified through actual inspection by the
Technical Evaluation Group (TEG) within ninety (90) calendar days from
receipt by the SECOND PARTY of the Notice to Proceed;

2. The FIRST PARTY shall pay by lot/qualification as the public bidding was
done by lot/qualification. However, payment shall only be made after
delivery of all the items prescribed in the bidding documents per
lot/qualification and acceptance by the FIRST PARTY are completed. Since
the goods will be delivered to TESDA Regional Offices prescribed in the
bidding documents, a team shall be created by the FIRST PARTY to look
into the delivery of goods by the SECOND PARTY. A Certificate of
Acceptance as to the completeness of the delivery and compliance with the
requirements prescribed by the FIRST PARTY shall be issued by the team
and must be duly approved by the Regional Director concerned of TESDA
before any payment is made in favor of the SECOND PARTY. At any rate,
payment shall be made in accordance with the government accounting and
auditing rules and regulations;

3. The following documents shall be deemed to form and be read and

construed as part of this Agreement:

(a) Bidding Documents of the SECOND PARTY;

(b) BAC Resolution No. 15-2016 dated 27 June 2016;
(c) TESDA Board Resolution No. 2016-12 dated 21 September 2016;
(d) Notice of Award;
(e) Performance Security;
(f) Notice to Proceed; and
(g) Bid Bulletin No. 01 dated 19 May 2016;

4. To guarantee the faithful performance by the SECOND PARTY of its

obligations, a performance security should have been posted prior to the

7
 signing of the contract pursuant to Section 39 of the Revised Implementing
Rules and Regulations of Republic Act No. 9184. The performance security
shall remain valid until the issuance by the FIRST PARTY of the Certificate
of Acceptance. The performance security should be posted in favor of the
FIRST PARTY and shall be forfeited in the event it is established that the
SECOND PARTY is in default in any of its obligations under the contract.

5. The goods subject of the delivery shall be covered by the provisions of

Section 62 of the Revised Implementing Rules and Regulations of Republic
Act No. 9184 on warranty. The SECOND PARTY hereby warrants that the
tools and equipment subject of this Agreement are free from material
defects or faulty workmanship under normal use and operation for a period
covered by the law. Warranty shall be for one (1) year after acceptance by
the procuring entity of the non-expendable goods. In case of expendable
goods, the warranty shall be valid for three (3) months after acceptance by
the procuring entity of the expendable goods.
The obligation for the warranty shall be covered by either retention money
or a special bank guarantee equivalent to at least ten percent (10%) of the
total contract price.
Any goods found to be defective which is not due to the normal wear and
tear or improper use of the FIRST PARTY during warranty period shall be
repaired or replaced immediately for free by the SECOND PARTY.

6. Any delay in the delivery of goods shall be governed by Section 68

(Liquidated Damages) of the Revised Implementing Rules and Regulations
of Republic Act No. 9184. For the procurement of goods, the amount of the
liquidated damages shall be at least equal to one-tenth of the one percent
(0.1%) of the cost of the unperformed portion of every day of delay. Once
the cumulative amount of liquidated damages reaches ten percent (10%) of
the amount of contract, the procuring entity shall rescind the contract,
without prejudice to other courses of action and remedies open to it.

7. Cost of applicable taxes, deployment and insurance of goods shall be

shouldered by the SECOND PARTY.

8. The obligations and rights arising from this Agreement shall not be
assigned and transferred by the SECOND PARTY to any third party without
the written consent of the FIRST PARTY.

9. The SECOND PARTY shall comply with the provisions of the law on
working conditions and labor standards.

10. If any dispute or difference of any kind whatsoever shall arise between the
Parties in connection with the implementation of this contract, the Parties
shall make every effort to resolve amicably such dispute or difference by
mutual consultation.
Any and all disputes arising from the implementation of this contract shall
be submitted to arbitration in the Philippines according to the provisions of
Republic Act No. 876, otherwise known as the "Arbitration Law" and
Republic Act No. 9285, otherwise known as the "Alternative Dispute

8
 Resolution Act of 2004". Any cost arising from the arbitration shall be
charged against the SECOND PARTY.

IN WITNESS whereof, the Parties hereto have caused this Agreement to be executed in
accordance with the laws of the Republic of the Philippines on the day and year
indicated above.

TECHNICAL EDUCATION AND ACMI OFFICE S STEM

SKILLS DEVELOPMENT AUTHORITY PHILIPPINES, I

RICHARD AN ONY S. NGUI

Director General/Secretary President

SIGNED IN THE PRESENCE 0

ROSA NA A. URDANETA ROS P. DELA CRUZ

Deputy Director General Acc • nt Executive
Policies and Planning

ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES)

- ) S.S.

BEFORE ME, a Notary Public for and in the Province/City of

this OCT 0 5 21310 2016 personally came and appeared:

NAME VALID ID NO. ISSUED BY

GUILING A. MAMONDIONG Ogg— 'MI •1-1->cip
" A-
RICHARD ANTHONY S. NGUI :0-39,(ApN-b c.PV

Known to me and to known to be the same persons who executed the foregoing
instrument which they acknowledge before me as their free and voluntary act and
deed.
Cif:T 0 5 'Lli6
WITNESS MY HAND AND SEAL this day of 2016 at
A A

Doc. No. ° ATTY. JOSEL BONNIE V. VALEROS

Page No. Qi/ NOTARY P' BLIC, ROLL NO. 54515
PTR No, 4913213, Issued on 12.22-15 Maniii
Book No. IBP life No, 723963 Issued on: Aug, 21, MT
Series of 2016 Commission No, 2015.099, Issued on 04.05-16 Manila Until 11914
Office Add: Imperial Bayfornt Tower, 1642 A, MAK Mark
NiciF. No. v4":73138 Itw ON 11,4 14, 2515
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