NPM No. 093-2016

Requesting Entity: Supreme Court (SC) of the Philippines

Issues Concern: Department of Labor and Employment (DOLE) Department Order (DO) No. 150-16



Clarification on the procurement of security services for the Halls of Justice nationwide and the applicability of DOLE DO No. 150-16, particularly its requirement for a minimum administrative cost of 20% of the total contract price.


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 a percentage imposition that has for its effect the fixing of a floor price on bid prices. In this regard and following the position of the GPPB as stated and explained in the above-mentioned various issuances, as well as the case of Philippine Sports Commission, et. al. v. Dear John Services, Inc., we are of the opinion that Section 4 of DOLE DO No. 150-16, insofar as it imposes a minimum administrative fee of 20% of the total contract cost per the Service Agreement for security services, runs counter to the provision of Section 31 of RA 9184 and its IRR.