Addendum No. 1


This Bid Bulletin is issued to inform prospective Bidders of some provisions with concerns/clarification during the Pre-bid Conference for the requirements “To furnish Security Services good for One Hundred Eighty-Five (185) Security Guards to perform duties from May 16 to August 31, 2024 to the different offices and hospitals of the Provincial Government of Negros Oriental, 395 days factor (24 hours for 7 days a week with at least 8 hours per shift) for 185 Security Guards” under Bid No. B-182-2024, ABC:P14,753,048.86, viz:


Social Security System (SSS) contribution

  • The SSS contribution rate that will be used for the computation of the price schedule is SSS Circular No. 2022-033 entitled as “New Schedule of Social Security (SS) Contributions Effective January 2023” since no suspension has been issued.


PhilHealth contribution rate

  • The implementation of the expected 4.5% rate, the 5% rate will be used in the computation for PhilHealth contributions.


Agency Fee

  • 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 for Service Agreement for security services, likewise runs counter to the provision of Section 31 of Republic Act No. 9184 and its 2016 Revised Implementing Rules and Regulations”.



For the information and guidance of all concerned.


          Issued this 10th day of May, 2024.



 BAC Chairman