CONTRACT AGREEMENT FOR OUTSOURCING OF MANPOWER

SERVICES (JANUARY 2022 – SEPTEMBER 2022)

KNOW ALL MEN BY THESE PRESENTS:

This Contract Agreement for Outsourcing of Manpower Services is made and entered into
this ____________________ at _______________ by and between:

The ADVANCED SCIENCE AND TECHNOLOGY INSTITUTE, a government

agency attached to the Department of Science and Technology (DOST) created by
virtue of laws of the Philippines, with principal address at U.P. Technology Park
Complex, C.P. Garcia Avenue, U.P. Campus, Diliman, Quezon City 1101,
represented in this Agreement by its Director, FRANZ A. DE LEON, Ph.D.,
hereinafter referred to as the “CLIENT”;

-and-

The DBP SERVICE CORPORATION a corporation duly organized and existing

under and by virtue of the laws of the Republic of the Philippines, with principal
address at 2nd Floor Executive Bldg., Sen. Gil Puyat cor. Makati Ave., Makati City
represented by its President, RAUL LUIS D. MANALIGOD, hereinafter referred
to as the “EXTERNAL PROVIDER”.

WITNESSETH:

WHEREAS, the Client requires the services of a qualified and licensed outsourcing firm
engaged in staffing services, which will provide manpower personnel to the Client, to carry out its
mandate;

WHEREAS, for the procurement of said services, a public bidding was conducted pursuant to
the provisions of Republic Act No. 9184 and its 2016 revised Implementing Rules and Regulations;

WHEREAS, in said public bidding the External Provider was the Single Calculated Responsive
Bid based on the bidding criteria set by the Client;

WHEREAS, Client accepted the bid of the External Provider and the latter conformed with
such acceptance; and

NOW, THEREFORE, for and in consideration of the foregoing premises, and of the terms and
conditions herein set forth, the parties hereby agree as follows:

I. WORK SCHEDULE

A. The External Provider shall provide and assign to the Client the staff from Monday-Friday and
render at least eight (8) hours of work per day or a total of forty (40) hours of work per week or at
schedules to be agreed by both parties. Assigned staff must observe the Client’s work schedule
(sliding flexi, i.e., time in any time between 7:00 am – 9:00 am and time out after eight (8) hours of
work, any time between 4:00 pm – 6:00 pm, excluding lunch break).

B. Personnel assigned to the Client must observe its schedule including work suspension as well as
regular, special, and non-working holidays.

C. The Work Schedule is subject to change at any time when required by the Client and upon written
communication to the External Provider.

II. PERSONNEL MATTERS

A. The Client has the right to screen applicants and choose the personnel to be assigned. The External
Provider shall consider hiring the existing contract of service staff of the Client in relation to this
Contract. Digitally signed by
Cayaban May Celicious

Digitally signed by De
Leon Franz Asunta
B. The External Provider shall provide a copy of the pre-employment examinations results to the
Client and a copy of employment requirements submitted by the assigned employees. These
documents should be submitted to the Client on the first day of employee assignment to the Client.

C. The personnel shall be exclusively assigned by the External Provider to the Client. They are
required to observe the Client’s Office Rules and Regulations and must conduct themselves in a
manner appropriate for a government employee (even if there is no employee-employer relationship)
as they are serving as part of the organization.

D. The External Provider is not precluded from implementing its own Office Rules and Regulations
governing the employment of staff assigned to the Client, such as but not limited to, attendance and
punctuality. It should be noted, however, that the former should notify the latter in writing at least
two (2) weeks before any disciplinary action is meted out.

E. The employees to be hired under this Contract are monthly-paid employees consistent with the
definition of the Department of Labor and Employment as “those who are paid every day of the
month, including unworked rest days, special days, and regular holidays” (Handbook Workers’
Statutory Monetary Benefits, 2019 Edition, Section 1, Minimum Wage, Subsection D).

F. The External Provider shall pay the personnel the required salaries and benefits mandated by law.

G. The External Provider shall provide the Client the list of benefits to be given to the assigned
personnel, including those that are company-initiated.

H. The personnel shall undergo performance evaluation by the Client, which will serve as basis for
his/her continuation of services/assignment to the Client.

I. The Client has the right to request for the relief and immediate replacement of assigned personnel
from the Client in case of violation of the rules and regulations, as well as internal policies of the
Client and of the External Provider, or for any other reasonable cause such as, but not limited to:

1. Serious misconduct or willful disobedience of the assigned personnel of the rules and
regulations, as well as internal policies of the Institute;
2. Habitual neglect of duties;
3. Fraud or willful breach of trust by the assigned personnel; and
4. Commission of a crime or offense by the assigned personnel against Client.

J. The Client has the right to request for a reliever to temporarily substitute the assigned personnel to
cover unexpected events, such as but not limited to long-term sickness absence, maternity leave,
bereavement leave, study leave, among others, of the assigned personnel.

K. The External Provider shall, on behalf of its employees to be assigned to the Client, agree to assign
to the Client all IP rights including but not limited to patents, utility models, industrial designs,
trademarks, copyrights and related rights arising and generated from the services its employees will
render for the Client in exchange of salary, honorarium, or any remuneration that the employees will
be receiving.

L. The External Provider shall ensure that a Deed of Assignment, provided by the Client, is signed by
each employee assigned to the Client as an annex to their employment contract. It shall provide that,
in exchange of the salary received, the employee shall assign all its IP rights to the Client, which are
related to their outputs produced during the course of their assignment to the Client. The External
Provider shall provide the Client a certified true copy of the signed Deed of Assignment.

M. The External Provider shall require its personnel who will be assigned to the Client to execute all
documents and do all acts as may be deemed necessary by the Client, to give effect to the terms
provided under Personnel Matters Section, Items 10 and 11 of this Contract. All documents should
be submitted to the Client on the first working day of the assigned employee.

N. The personnel must secure clearance for all accountabilities at the end of his/her assignment in the
Client. The External Provider must ensure that the assigned personnel shall secure necessary
clearances for all accountabilities at the end of his/her assignment in the Client or in case of voluntary
resignation or retirement. Failure to submit all the required documents and clearances shall mean
withholding of monetary benefits due to the assigned personnel. Digitally signed by
Cayaban May Celicious

Digitally signed
by De Leon
Franz Asunta

2
O. The External Provider shall guarantee payment of salaries of staff for the first three (3) months of
the contract even prior to the release of funds from the Client.

P. In case the Client requires deployment and other activities that require traveling, the External
Provider shall process requirements for travel, per advice of the Client. Travel expenses shall be
billed separately, the cost of which is exclusive of the contract price.

III. CONTRACT PRICE

A. The total contract price for the Outsourcing of Manpower Services is Forty-Nine Million Eight
Hundred Sixty-One Thousand Four Hundred Twelve Pesos and 1/100 Only (₱49,861,412.01).

B. The billable amount under this contract and/or the contract price may be adjusted or updated in
consideration of any of the following, subject to availability of funds:

1. Government-mandated increase on the minimum wage, cost of living allowance, Social Security
System (SSS), Philippine Health Insurance Corporation (PhilHealth) and Home Development
Mutual Fund (Pag-IBIG Fund) contributions or other similar increase mandated by the
appropriate government authority.

2. In order to implement the adjustment, the External Provider should notify the Client, in writing,
about the increase in contributions duly supported by an updated/adjusted monthly billing rate
per salary grade. Upon approval of the Client of the updated/adjusted monthly billing rate, the
same can be immediately implemented.

3. Additional work/Overtime (OT) required by the Client or deductive work (undertime and
absences). The total cost of additive work or deductive work shall be based on the unit cost
specified in the Contract Price including any approved adjustments during contract
implementation. Payment for overtime work may also be charged against the savings generated
from undertime and absences of outsourced staff.

4. The External Provider should ensure that the OT claim is supported by required supporting
documents per the internal rules and regulation of the Client on the matter.

5. Increase in salaries of government employees pursuant to a directive/issuance by the Department

of Budget and Management (DBM) which was used as basis in the computation of monthly basic
salary rates. In case of salary increase, the unit cost referred to in Contract Price, Item b., shall
accordingly be adjusted to the approved amended salary rates.

6. To implement the salary adjustment, the Client should notify the External Provider, in writing,
about the increase in prescribed basic salary rates of employees. The External Provider should
submit an updated/adjusted monthly billing rate per salary grade. Upon approval of the Client
of the updated/adjusted monthly billing rate, the same can be immediately implemented.

If any of these adjustments will result in an amount greater than the current contract price a
Supplemental Contract indicating the adjusted/updated contract price should be prepared.
Otherwise, the documents stipulated above shall suffice.

IV. CONTRACT PERIOD

A. The term of this Contract shall be effective for a period of nine (9) months starting and ending in
January 2022 and September 2022, respectively.

B. The date of delivery of services to the Client shall be on 03 January 2022.

C. For positions that are required for less than nine (9) months, the Client shall notify the External
Provider, in writing, on the specific start date of said positions.

D. The Client reserves the right to terminate the contract in case the External Provider fails to fulfill
any of the obligations set forth in this contract. In case of termination, a thirty (30) day notice shall
be made by the Client. Digitally signed by
Cayaban May
Celicious

Digitally signed
by De Leon
Franz Asunta

3
 V. OTHER CONDITIONS

A. Any judicial action to enforce any of the terms stated herein shall be instituted and prosecuted in the
court of appropriate jurisdiction in Quezon City, Philippines.

B. The External Provider shall guarantee for the loss or damage of the Client’s property, unless it has
been duly established after investigation that said loss or damage did not result from the act, omission,
negligence, or fault of the External Provider or any of its employees. Such loss or damage must be
reported in writing to the External Provider within five (5) working days from occurrence or
discovery thereof. When such loss or damage is caused by force majeure or fortuitous event, the
External Provider shall not, in any way, be made responsible.

C. The assigned personnel are the exclusive employees of the External Provider and there exists no
employer-employee relationship between them and the Client. As such, claims of any nature,
financial or otherwise, by the assigned personnel arising out of and/or in connection with their
employment by the External Provider shall be the sole responsibility of the External Provider.

D. The personnel to be assigned must be trained and with adequate experience, physically and mentally
fit, courteous and honest, and are provided by the External Provider with identification cards.

E. The cost of coverage of the assigned personnel for SSS, PhilHealth, Pag-IBIG and other benefits due
them shall be the sole responsibility of the External Provider.

F. The assigned personnel shall submit to personnel search and spot check by the Client’s Security
Guards when required and must observe/abide by all security regulations and requirements of the
Client.

G. Upon the request of the Client, the External Provider shall relieve any of its assigned personnel
with whom the Client has lost trust and confidence, or who was found inefficient, disobedient, or
disrespectful or for any other valid or justifiable reason.

H. The Client is not answerable or liable whatsoever for any claim of the assigned personnel arising
from the performance of their duties and/or in the course of employment with the External Provider,
including claims for benefits due to the External Provider’s personnel.

I. The External Provider shall provide a dedicated contact person who shall be responsible in
addressing concerns relative to the implementation of this contract.

VI. CONFIDENTIALITY

The Client and the External Provider shall hold in strict confidence all information furnished by one
to the other and shall not disclose the same to any third party without the prior written consent of the
other party to the party providing such confidential information. The Client and the External Provider
shall sign a non-Disclosure agreement to effect this provision. Additionally, the External Provider shall
extend such agreement with all employees to be assigned to the Client by requiring the signing of a
similar document. The External Provider shall furnish the Client a copy of such document.

It is hereby further agreed that both parties shall likewise hold on strictest confidence all information
relating to this Contract that may be entered into by the parties and shall not disclose to information
unless expressly agreed upon in writing by the parties hereto.

VII. AMENDMENT

The Client may change the number of positions and position titles, as well as create additional positions,
initially identified under this procurement contract, provided that the amendments shall not exceed the
approved contract price and that the position titles are based on the DOST Profile of Contract of Service.
These changes shall be communicated in writing with the External Provider and shall take effect upon
the agreement of both parties.

Any other amendment in the terms, conditions, or provisions not stipulated in this document should be
covered by a separate agreement as proposed and agreed upon by the Client and External Provider.
Digitally signed by
Cayaban May Celicious

Digitally signed
by De Leon
Franz Asunta

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 VIII. PERFORMANCE SECURITY

The External Provider shall post a Performance Security prior to the signing of Contract, in the form
of surety bond callable upon demand issued by a surety or insurance company duly accredited by the
Insurance Commission, equivalent to thirty (30%) percent of the annual Contract Price.

IX. SEPARABILITY

Any part, provision, or representation relative to this Contract, which is prohibited, or which is held to
be void or unenforceable shall be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof.

ADVANCED SCIENCE AND DBP SERVICE CORPORATION

TECHNOLOGY INSTITUTE
by: by:
Digitally signed
by De Leon Franz
Asunta
FRANZ A. DE LEON, Ph.D. RAUL LUIS D. MANALIGOD
Director, DOST-ASTI President

SIGNED IN THE PRESENCE OF

Digitally signed
by Cayaban
May Celicious
MAY C. CAYABAN Digitally
signed by
________________________________
Melendrez
Chief Administrative Officer Lester Mae
Dela Cruz

CERTIFIED FUNDS AVAILABLE

Digitally signed by
Gay Concepcion S.
Bugagao
GAY CONCEPCION S. BUGAGAO
Accountant III
ORS 2022-01-000001 Amount: 49,861,412.01

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 ACKNOWLEDGMENT

BEFORE ME, a Notary Public for and in the ________________ of _______________, personally
appeared Franz A. De Leon with Identification No. with Identification No. DFA P8081541A
(Passport) issued on 25 July 2018 at DFA, Manila and Raul Luis D. Manaligod with Identification
No. ________________ issued on _______________ at _______________, both known to me and to
me known to be the same persons who executed the foregoing instrument which they acknowledged to
me to be their free and voluntary act and deed, consisting of only six (6) page/s, including this page in
which this Acknowledgment is written, duly signed by them and their instrumental witnesses on each
and every page hereof.

WITNESS MY HAND AND SEAL this _____________ at _____________, Philippines.

NOTARY PUBLIC

Doc. No. __________;

Page No. __________;
Book No. __________;
Series of __________.

Digitally signed by
Cayaban May Celicious

Digitally signed
by De Leon
Franz Asunta