(Generator Sets) (PMO Legazpi). - Philippine Ports Authority

-H r PHILIPPINE PORTSAUTHORITYPORT MANAGEMENT OFFICE OF LEGAZPIGovernment Regional Center, Rawis, Legazpi City 4500Telefax (052) 482-0303, (052) 482-0304, (052) 480-7087NOTICE TO PROCEEDOctober 10, 2012Mr. Eduardo S. Salgado, Jr.General ManagerFIL GENERATORS AND SERVICES COMPANYUpper Floor Unit B FJO Building, M.C. Briones Street,Mandaue CitySUBJECT:Bidding for the Supply, Delivery, Commissioning andInstallation of 50KVA and 25KVA Generator SetsDear Mr. Salgado:GREETINGS!We are pleased to inform you that the Contract for the Supply, Delivery,Commissioning and Installation of 50KVA and 25KVA Generator Sets has beenapproved. In this regard, Notice is hereby given to your firm to commence workeffective on the date of the effectivity of this contract.Upon receipt of this Notice to Proceed, you are responsible for performing theservices under the terms and conditions of the contract and in accordance withthe implementation schedule.Please acknowledge receipt and acceptance of this Notice by signing bothcopies in the space provided below. Keep one copy and return the other to thisOffice.Very truly yours,ROJMAGAYSAYPort Manager j * —I acknowledged receipt and acceptance of this Notice to Proceedon_________________________VamLA jCmU________ e -Name and'Signature of Authorized Signing Official

T f PHILIPPINE PO R TSa u t h o r i t yPORT MANAGEMENT OFFICE OF LEGAZPIGovernment Regional Center, Rawis, Legazpi City 4500_________________________ Telefax (052) 482-0303; (052) 482-0304; (052) 480-7087_________________________________CONTRACT FOR THE SUPPLY, DELIVERY,COMMISSIONING AND INSTALLATION OF50KVA & 25KVA GENERATOR SETSKNOW ALL MEN BY THESE PRESENTThis Contract is entered into and executed this 10th day of October 2012 inthe City of Legazpi by and between:PHILIPPINE PORTS AUTHORITY, PORT MANAGEMENT OFFICEOF LEGAZPI (PPA PMO Legazpi), a government instrumentalitywith office address at Government Center, Rawis, Legazpi Cityrepresented herein by its Port Manager, ROSENDA G.SUMAGAYSAY, hereinafter referred to as the “PPA PMOLegazpi”.FIL GENERATORS AND SERVICES COMPANY, a firm dulyregistered and existing under and by virtue of the laws of theRepublic of the Philippines, with office address at Upper Floor UnitB FJO Building M.C. Briones Street, Mandaue City represented byits Sales Engineer, MR. DANNY L. DOLLOSO duly authorized forthis purpose by Partnership Resolution passed and adopted onSeptember 27, 2012, a copy of which is hereto attached as annex“A” and hereinafter referred to as the “SUPPLIER”.-and--WITNESSETH-WHEREAS, the PPA PMO Legazpi is in need of generator set equipment toensure the continuous supply of power in the Terminal Management Offices andPassenger Terminal Buildings during brown-outs/power outage from local powerservice provider;WHEREAS, in accordance with Republic Act No. 9184 and its RevisedImplementing rules and Regulations, the PMO Legazpi Bids and Awards Committeefor the Procurement of Goods (BAC-PG), posted in the PhilGeps website, PPAwebsite and PMO Legazpi Bulletin Board and in other conspicuous places in theTerminal Management Offices, an Invitation to Bid for the Supply, Delivery,Commissioning and Installation of 50KVA and 25KVA generator sets;WHEREAS, after the opening of bids on October 1, 2012, and the conduct ofbid evaluation and required post-qualification, the bid submitted by the SUPPLIER atits unit and lump sum prices set forth in its proposal was found to be the lowestcalculated responsive bid in the amount of One Million Two Hundred Thirty EightThousand Pesos (Php1,238,000.00), Philippine Currency;

WHEREAS, pursuant to BAC Resolution No. 09-2012 dated October 5, 2012the contract to supply, deliver, commissioning and installation of above mentionedgenerator sets was awarded to the SUPPLIER through a Notice of Award dated 06October 2012 , in the amount of One Million Two Hundred Thirty Eight ThousandPesos (Php1,238,000.00), Philippine Currency;WHEREAS the SUPPLIER duly accepted the award by signing the Conformeportion on said Notice of Award;NOW THEREFORE, for and in consideration of the foregoing premises and the mutualterms, conditions and stipulations hereinafter set forth,, the parties hereto have agreedand covenanted, as they hereby agree and covenant, as follows:1. CONTRACT DOCUMENTS1.1 The following documents shall constitute integral parts of this Contract,as fully as if the contents of said documents are reproduced,incorporated and set forth herein, to wit:a. Bidding documents;b. Winning Bidder’s bid, including the Eligibility Requirements,Technical and Financial Components and all other documents/statements submitted;c. Performance Securityd. Addenda and/or Supplemental/Bid bulletin, if any;e. Credit Line in accordance with the provisions of the RevisedIRR of R.A. 9184, if applicable;f. Notice of Award;g. Other contract documents that may be required by existinglaws and PPA PMO Legazpi such as;1. Latest Income and business Tax Returns2. Tax Clearance3. Certificate of PhilGeps Registration4. Certificate of Availability of Funds1.2 All contract documents are and shall remain as the property of PPA PMOLegazp.2. PAYMENT - For and in consideration of the generator sets supplied delivered,commissioned and installed by the SUPPLIER on site in accordance with the terms ofthis contract and which have been duly inspected and accepted, PPA PMO Legazpihereby agrees to pay the former the amount as provided in the Financial Proposal ofthe SUPPLIER which forms part of this Contract.3. PERFORMANCE SECURITY - to guarantee the faithful performance of theSUPPLIER under this contract, it shall post upon signing of the contract a performancesecurity in accordance with the following schedule:

a) Cash or cashier's/manager’s check issuedby a Universal or Commercial Bankb) Bank draft/guarantee or irrevocable letterof credit issued by a Universal or CommercialBank; Provided, however, that it shall beconfirmed or authenticated by a Universal orCommercial Bank, if issued by a foreign bankc) Surety bond callable upon demand issuedby a surety or insurance company dulycertified by the Insurance Commission asauthorized to issue such securityFive Percent(5%) of the totalcontract priceThirty Percent(30%) of thetotal contractpriceThis performance security shall be posted in favor of PPA PMO Legazpi andshall be forfeited in favor of PPA PMO Legazpi in the event it is established that theSUPPLIER is in default in any of its obligations under this contract.4. LIQUIDATED DAMAGES - Should the SUPPLIER refuse or fail to satisfactorycomply with its undertakings, and is hereby in default under this contract, theSUPPLIER shall be liable for damages for the delay and shall pay PPA PMO Legazpifor liquidated damages and not by way of penalty, an amount equivalent to one-tenth(1/10) of one percent (1%) of the cost of the unperformed portioned thereof, for everyday of delay until the same is finally performed/completed and accepted by PPA PMOLegazpi.It is understood that the damages herein provided are fixed and agreedliquidated damages and to be entitled to such damages, PPA PMO Legazpi need notprove that, it has incurred actual damages. Such amount shall be deducted from anymoney due or which may become due to SUPPLIER under the contract and/or collectsuch liquidated damages from the securities or warranties posted by the SUPPLIER,whichever is convenient to PPA PMO Legazpi.In no case, however, shall the total sum of liquidated damages exceed tenpercent (10%) of the total contract price, in which event the contract shall automaticallybe terminated by PPA PMO Legazpi and the erring SUPPLIER’S performancesecurity shall be forfeited. The amount of the forfeited performance security shall beset aside from the amount of the liquidated damages that the SUPPLIER shall payPPA PMO Legazpi under this section and the other appropriate sanctions that may beimposed to the former.5 CANCELLATION/TERMINATION OF CONTRACT - PPA PMO Legazpi hasthe right to terminate or cancel this contract without need of judicial action at any timeon reasonable grounds, such as, but not limited to: unsatisfactory service andperformance or violation of the terms and conditions of this contract, by giving theSUPPLIER at least fifteen (15) calendar days written notice in advance to that effect,which Notice shall be final and binding on all parties.Within thirty (30) days after the termination, cancellation, or rescission of thiscontract, the parties shall settle their respective accountabilities as of the date oftermination, cancellation or rescission.

6. WARRANTY - The SUPPLIER hereby warrants compliance with therequirements stipulated under this contract and the generator sets supplied are new,unused, of current models and all recent improvements are incorporated in the designand materials.7. SUPPLIER’S LIABILITY - The SUPPLIER shall assume full responsibility andagrees and binds itself to indemnify PPA PMO Legazpi for any loss, damage,destruction and/or injury that may be incurred by the latter and/or its employees whichare attributable to the negligence, fault, misconduct or unlawful acts of the former andits personnel.8. DELIVERY, COMMISSIONING AND INSTALLATION - The SUPPLIERshall cause the delivery, commissioning and installation of the 50KVA and 25KVAGenerator Sets on site, thirty (30) calendar days upon receipt of Notice to Proceed.The Generator Sets must be 100% functional and in good operating condition.Intensive testing should be done by the SUPPLIER together with PMO LegazpiEngineering personnel to achieve the functionality and benefits of the equipment. TheSUPPLIER must provide an actual result of the testing of the 50KVA and 25KVAGenerator Sets.9. MAINTENANCE/TECHNICAL SUPPORT - During the warranty period, theSUPPLIER shall provide at least one (1) highly qualified generator set technician inhis/her employ to service the said equipment on site, in case of malfunctioning or anyother related problem wholly or partly attributable to the operating condition of thegenerator sets.On call support shall be available 24 hours a day, 7 days a week. A one (1)hour response from time of the call (through telephone/mobile call) shall be providedby the winning bidder for trouble shooting.Onsite support must have a response time of not more than 8 hours from thetime of the call in cases of on call/phone support could not solve the problem.On generator set repair, testing shall be done on-site to know the extent of theproblem. Travel and other incidental expenses of the responding technician shall beborne by the SUPPLIER. During warranty period, all parts beyond repair shall bereplaced at no cost to PPA PMO Legazpi.10. TECHNOLOGY TRANSFER - The SUPPLIER must provide technologytransfer/in-depth technical training to PPA PMO Legazpi Engineering personnel, freeof charge.11. THIS CONTRACT SHALL TAKE EFFECT OCTOBER 15, 2012.Training shall commence before issuance of Certificate of Acceptance by PPAPMO Legazpi

IN WITNESS WHEREOF, the parties have hereunto affixed their signature this 10thday of October 2012 at Legazpi City, Philippines.PPA-PMO LEGAZPIFIL GENERATORS AND SERVICES COMPANYby:ROSENDA G. SUMAGAYSAYPort ManagerDANNYU9OLLOSOSales EngineerSigned in the Presence of:. AGAOPSD ManagerACKNOWLEDGEMENTEMMABRAN'-S.SALGADOMANAGERRepublic of the Philippines)x .....................................x ) S.S.City of Legazpi )Before me, a Notary Public for and in the City of ^ ^. day of rrT 1fll l >____ 2012, personally appeared:2 2 O C T 2 M EthisDANNY L. DOLLOSO 11900219ROSENDA G.SUMAGAYSAY 30913731Bacolod CityLegazpi CityAug. 1, 2012Jan. 24, 2012And they acknowledged to me that the same is their free and voluntary act and deedas well as their free and voluntary act of the corporation they represent.This foregoing instrument refers to the CONTRACT for the Supply, Delivery,Commissioning and Installation of Generator Sets for PPA PMO LEGAZPI consistingof five (5) pages including the page on which this acknowledgement is written, dulysigned by the parties and their witnesses on each and every page thereof.I 2 O C T 2012WITNESS MY HANQ^ND SEAL, this day o f____________ 2012 at theCity of Legazpi, Philippines?Doc. No.Page No. .Book No. A 11/Series of 2012k Cil L NO. 1784-6