NPM 106-2014

Requesting Entity: Atty. Manuel L.G. Capistrano

Issues Concern: Section 5.2.3 of Resolution No. 24-2007



Clarification on the interpretation of Section 5.2.3 of the Guidelines on the Procurement of Security and Janitorial Services (Guidelines)

Section 5.2.3 of the Guidelines should be read together with Section 5.2 of the same Guidelines for a complete understanding of its context. Section 5.2 of the Guidelines provides the general rule that all bid prices shall be fixed for the duration of the multi-year contract, e.g., three (3) years, and shall not be adjusted during contract implementation. Section 5.2.3 of the Guidelines is one of the three exceptions where contract price adjustment is allowed when the procuring entity sees the need for an increase or decrease in the number of security guards or janitorial attendants. The contract price adjustment shall be based on the resulting cost of the increase or decrease in the number of manpower originally identified. It should be emphasized, however, that the contract price adjustment shall not exceed the ABC for the relevant year, i.e., the ABC for the year when the increase or decrease was identified.