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LaborLawsandSocialLegislationGPPBResolutionNo.02-2012

Dep. Exec. Dir. Dennis S. Nacario

DBMGPPB-TSO

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Legal Bases

Section 63 of Republic Act (RA) No. 9184and its revised Implementing Rules andRegulations (IRR)

GPPB Circular No. 01-2008 DOLE Dept. Order No. 18-A (14 November

2011)

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Section 63 of RA 9184 and its IRR

GPPBs mandate to formulate andamend, whenever necessary, the IRRand the corresponding standard formsof procurement. Section 63, RA 9184

GPPBs mandate to formulate andamend public procurement policies,rules and regulations, and amend,whenever necessary, the IRR. Section

63.1(b)

GPPBs mandate to prepare a genericprocurement and the standard biddingforms for procurement. Section 63.1(c)

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GPPB Circular 01-2008

7March2008

Imposition of additional eligibility or technicaldocuments,i.e.,DOLE,SSS,PhilHealth,orPag-IBIG,isdiscouraged.

Clearance or certificate from appropriategovernment authority that the bidder has nop n ing administrative or labor case filedagainst is violative of due process and

prohibitive.

Submissionofsuchclearancesmayberequiredat specified periods during contractimplementation.

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GPPB Circular 01-2008

Procuring Entities (PEs) may, during post-qualification, verify, validate and ascertainstatements made by a bidder in its statementthat it complies with existing labor laws andstandards:

- ComplieswithMinimumWage;

- Regularly remits mandated premiums toSSS,PhilHealthorPAG-IBIG;or

- Has been finally adjudged by a court of

competent jurisdiction to have violated anylaborlaworsociallegislation.

NON-COMPLIANCE = POST-DISQUALIFIED

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DOLE Dept. Order No. 18-A

14November2011

DOLEidentifiedthatoneofthereasons

fortheviolationistheunscrupulous

undercuttingofcontractrate.

Toaddressthis,DOLEissued

DepartmentOrderNo.18-Aon14

November2011.

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DOLE Dept. Order No. 18-A

DOLEDO18-Aprovides,amongothers,thattheServiceAgreementbetweenthe

PrincipalandtheContractorshould

conformtothefollowing:

1.StandardComputationofadministrative

cost,whichshouldnotbelessthan10%

ofthetotalcontractcost[Sec.9(b)(ii)];and

2.StandardServiceAgreement[Sec.9

(b)].

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DOLE Dept. Order No. 18-A

STANDARD COMPUTATION

Payable Directly to Servicemen: 6500.00

a. Basic Salary

b. Night Differential

c. Emergency COLA

d. 13

th

Month Pay

e. Service Incentive Leave Pay

Payable as Employees Share 500.00

a. Social Security Premiums

b. Philhealth Premiums

c. ECC Insurance Premiums

d. Pag-ibig Fund Contribution

Total Cost 6000.00

10% Administrative Cost 600.00

Possible Bid Price 6600.00

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DOLE Dept. Order No. 18-A

DOLErequestedthefollowingfromGPPB:

1. To issue advisory enjoining all

government agencies to ensure that thebidder with the lowest calculated and

responsive bid complies with labor and

othersociallegislations.

2. ToappendDOLEDO18-Atotheadvisory

thatwillbedisseminatedtoallgovernment

agencies

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GPPB Circular No. 01-2012

Section25.2ofRA9184sIRR:

- Supportsenforcementoflaborlaws

andsociallegislationsbyrequiringbidderstosubmitaswornstatement,whichincludes,amongothers,astatementthattheycomplywithlaborlawsandstandards.

PhilippineBiddingDocumentsOmnibusSwornStatementalsoreflecttheabovestatement.

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GPPB Circular No. 01-2012

ReiteratesGPPBCircular01-2008

- PEsverify,validate,andascertain

compliancebytheLCBwithlaborlawsandstandardsduringpost-qualification.

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GPPB PM 03-2012

Issuedon30November2012.

Section9(b)(ii)ofDOLEDO18-AprohibitsbiddersfromofferingbidslowerthanthesumoftheTotalReimbursableCostsand10%AdministrativeCost.

Scenarioresultsintheimpositionoffloorinbidprices.

RunscountertoSection31ofRA9184.

GPPBisoftheviewthatSection9(b)(ii)ofDOLEDO18-AshouldbeconsideredINVALID,andthus,cannotbeasourceofanyright,duty,obligation,orpower.

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If you have any questions, feel free to contact us:

Government Procurement Policy Board - Technical Support Office (GPPB-TSO)

900-6741 To 44

Thank you