NPM No. 025-2015

Requesting Entity: Department of Environment and Natural Resources (DENR)

Issues Concern: Philippine Association of Detective and Protective Agency Operations (PADPAO) prescribed Retirement Benefit



Whether the Retirement Benefits of security guards may be offered for free by a participating bidder to a procuring entity.

Republic Act (RA) 9184, through Section 25.2 of its Implementing Rules and Regulations (IRR), supports the enforcement of labor laws and social legislations by requiring bidders to submit an Omnibus Sworn Statement (OSS), which includes, among others, a statement that they comply with labor laws and standards. This is to ensure that winning bidders in government contracts, where engagement of labor is a necessary component, are compliant with existing labor laws and standards and social legislations.

Thus, an offer by the bidder of Retirement Benefits for free to the government is not in accordance with Wage Order No. NCR-18b issued by PADPAO since the prescribed rate (PhP 845.63) was not specified in its offer, which is contrary to its declaration in the OSS requiring compliance with labor laws and standards.