PREVENTIVE MAINTENANCE SERVICE AGREEMENT

THE PUBLIC IS INFORMED:

This Agreement is executed between:
NATIONAL KIDNEY AND TRANSPLANT INSTITUTE
(NKTI), a Philippine tertiary hospital, holding office at East
Avenue, Diliman, Quezon City, represented here by its
Deputy Executive Director for Administrative Services, MS.
BLESILDA A. GUTIERREZ, CPA, duly authorized for this
purpose, as shown by the attached authority;
-andCONCEPCION-CARRIER AIR CONDITIONING CO.
(CCAC), a Philippine corporation, holding office at Km. 20
East Service Road, South Superhighway, Muntinlupa City,
represented here by its Service Sales Head, MR. ANTONIO
GABRIEL, duly authorized for this purpose, as evidenced by
the attached authority.
ANTECEDENTS
NKTI wants its Carrier air conditioning equipment to be in continuous and
efficient operation devoid of machine breakdowns.
CCAC, the exclusive distributor and/or manufacturer of Carrier air conditioning
equipment in the Philippine Islands, submitted a formal proposal for the care and
upkeep such units to minimize the occurrence of major and expensive downtimes.
After a careful study and review of such proposal, NKTIs Bids and Awards
Committee (BAC) issued Resolution No. 2015-663-10 on October 2, 2015 to facilitate
the preventive maintenance coverage for the equipment.
NKTI-BAC maintains that the agreement with CCAC is in accordance with the
alternative methods of procurement provided for under Revised IRR of R.A. 9184 Rule
XVI, Section 50, paragraphs a) to c), which states:
Section 50. Direct Contracting
Direct Contracting or single source procurement is a method of procurement of goods that does
not require elaborate bidding documents. Direct contracting may be resorted to by concerned procuring
entities under any of the following conditions:
a)
Procurement of items of proprietary nature which can be obtained only from the proprietary
source, i.e. when patents, trade secrets and copyrights prohibits others from manufacturing the
same item;
b)

When the procurement of critical plant components from a specific manufacturer, supplier or
Distributor is a condition precedent to hold a contractor to guarantee its project performance, in
accordance with the provisions of its contract, or

c)

Those sold by an exclusive dealer or manufacturer which does not have sub-dealers selling at
lower price and for which no suitable substitute can be obtained at more advantageous terms to
the Government.
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ACCORDINGLY, for and in consideration of the foregoing premises, NKTI and

CCAC hereby agree as follows:
1.

AGREEMENT DOCUMENTS
1.1.

Construction. All documents forming part of this Agreement shall be read

and interpreted in the context of its provision and in relation to one
another.

1.2.

Parts of the Agreement. The following Annexes shall be incorporated and

shall form an integral part of this Agreement:
Annex
A
B
C
D

2.

BID Document Title

NKTI BAC Resolution No. 2015-663-10
(Recommending Alternative Mode of Procurement CY
2015)
Notice of Award in favor of CCAC issued by the
Executive Director of NKTI
Terms of Reference
CCACs Quotation for Periodic Maintenance Service

TERM OF COVERAGE
2.1.

The CCAC undertakes to maintain NKTIs equipment monthly for a

period of one (1) year from August 10, 2015 to August 9, 2016.
Under the foregoing paragraph, the following will be undertaken:
a.
b.
c.
d.

3.

Monthly, quarterly, and annual maintenance service for the five (5)
units, as enumerated in Annex C, under the title Scope of
Works;
Check-up of operating performance;
Calibration of output or functional test; and
Issuance of Annual Calibration/Functional Test report.

STANDARD FEES AND TERMS OF PAYMENT

3.1.

PESOS: FIVE THOUSAND SIX HUNDRED ONLY (PHP 5,600.00) PER

VISIT inclusive of local taxes, for a total cost of PESOS: FIVE HUNDRED
TEN THOUSAND SEVEN HUNDRED TWENTY ONLY (PHP 510,720.00) for
at least twelve (12) visits per year scheduled monthly for the equipment
listed in Section 4.

3.2.

Payment will be collectible within thirty (30) days after preventive

maintenance service with corresponding billing statement supported by
satisfactory acknowledgement report and/or other relevant documents.

3.3.

Total monthly payment will be based on the actual service rendered per
equipment only. Service reports for each equipment will be the basis of
payment for the service rendered.

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4.

5.

EQUIPMENT COVERED
4.1.

Three (3) units 50TR Carrier Water-cooled Screw Chiller

Serial Nos. 10010007, 10010008, 10010009

4.2.

One (1) unit 300TR Carrier Water-cooled Centrifugal Chiller

Serial No. 1002Q56748

4.3.

One (1) unit 400TR Carrier Water-cooled Centrifugal Chiller

Serial No. 2403Q22749

SCOPE OF WORK OF CCAC

The scheduled monthly preventive maintenance service includes:
5.1.

General cleaning of all equipment mentioned in Section 4;

5.2.

Regular services such as:

a.
b.
c.
d.

5.3.

Monthly, quarterly, and annual maintenance service for the five (5)
units, as enumerated in Annex C, under the title Scope of
Works;
Check-up of operation;
Calibration of output/functional test;
Issuance of Annual Calibration/Functional Test report;

Corollary to Section 5.1 & 5.2, CCAC shall:

5.3.1. Furnish NKTI a written report of every maintenance service done,
as well as parts replaced and troubleshooting performed in order to
have a readily available historical data of the maintenance service;
5.3.2. Respond to all emergency calls within 3 to 6 working hours from
notice, including weekends and public holidays. The normal
working hours are from 8:00 a.m. to 5:00 p.m. Mondays to Fridays;
5.3.3. Not be required to make replacements or undertake repairs
necessitated by reason of negligence or misuse of the equipment;
and
5.3.4. Notify NKTIs GSD of the scheduled preventive maintenance before
its performance, to allow CCACs engineer/technician access.

6.

EXCLUDED PARTS AND SERVICES

6.1.

Cost of parts and accessories replaced during the preventive maintenance

and repair is exclusive of the annual fee. However, the end-user should be
provided the necessary parts/accessories in advance if available on
CCACs stock, while Purchase Order is on process to avoid disruption of
service. Provided further that processing of Purchase Order will be
expedited for the parts or accessories supplied or replaced such that as
payment will be collectible fifteen (15) to thirty (30) days after delivery
and installation or submission and verification of invoice. Otherwise CCAC
shall be constrained to suspend all its services under this Agreement if
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another thirty (30) days from the due date lapses and payment remains
unsettled provided that all necessary documents for billing have been
submitted.
6.2.

Maintenance service made necessary due to any cause whatsoever other

than normal and proper use of a machine, including without limiting the
generality of the foregoing maintenance service made necessary by:
a.
b.
c.

7.

Accident, transportation, misuse, abuse, fault or negligence of any

person other than an employee or agent of the Contractor;
Failure of or failure to provide adequate electrical power, air
conditioning, humidity control or otherwise suitable environment for
the location of the machine; and
Vandalism, fire or water damage.

6.3.

Maintenance of equipment not listed in this Agreement;

6.4.

Furnishing accessories or attachment, painting or refinishing the

equipment or furnishing materials therefore, performing service connected
with the relocation of equipment or adding or removing accessories,
attached or other devices.

MISCELLANEOUS PROVISIONS
7.1.

It is agreed by both contracting parties that no changes or adjustments in

prices shall be made in fluctuations or increase whatsoever without the
conformity of both parties.

7.2.

The Parties and their representatives warrant that they have the requisite
authority to sign this Agreement.

7.3.

This Agreement shall be binding on any Partys agents assigns or

successors-in-interest.

7.4.

If CCAC fails to complete the preventive maintenance as scheduled in this

Agreement, inclusive of extensions granted, if any, NKTI shall, without
prejudice to its other remedies under this Agreement and other applicable
laws, deduct from any money due or which may become due to CCAC
under this or any other agreement or from the performance bond filed by
it, as liquidated damages the applicable rate of one tenth of one percent
(1/10 of 1%) of the cost of unperformed portion of the contract for each
day of delay until the completion of the project.

7.5.

It is also understood that a signatory cannot be considered or adjudged to

be in violation of the Agreement when the violation is involuntary and due
to situations beyond their control or caused by force majeure.

7.6.

In case of disagreement in the interpretation of the provisions of this

Agreement, the Parties shall, as far as practicable, undertake to settle the
case amicably, before resorting to litigation.

7.7.

There will be no modification/amendment without written consent of both

parties.

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8.

7.8.

This Agreement will be subject to and construed in accordance with the

laws of the Philippines.

7.9.

Any action or proceeding seeking to enforce any provision of, or based on

any right arising out of this Agreement, shall be brought exclusively in the
courts of Quezon City, and each of the parties consent to the jurisdiction
of such courts in any such action or proceeding and waives any objection
to venue laid therein.

GENERAL PROVISIONS AGAINST GRAFT AND CORRUPTION

NKTI shall not give to, or receive from any Representative of CCAC any
commission, fee, rebate, or any gift or entertainment of value in connection with
goods to be supplied under this Agreement, or enter into any other business
arrangement with any representative of CCAC without the prior written consent
of CCAC. NKTI shall (a) promptly notify CCAC of any violation of this provision;
(b) repay or credit to CCAC any consideration received as a result of such
violation. In addition, if any violation thereof accruing prior to the effectivity of
this Agreement, resulted directly or indirectly in CCACs consent to enter into
this Agreement, CCAC shall have the option to terminate this Agreement at any
time, and shall not be liable to pay the NKTI for any compensation or
reimbursement whatsoever for any claim after the date of such termination,
notwithstanding any contrary provision in this Agreement. That this provision
shall be strictly observed and complied with by both parties. Any violation hereof
shall be a cause for the immediate termination of this Agreement and violation of
R.A. 3019 (Anti-Graft and Corrupt Practices Act).

SIGNED BY THE PARTIES ON ____________ at ____________________.

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NATIONAL KIDNEY AND TRANSPLANT

INSTITUTE

CONCEPCION-CARRIER AIR
CONDITIONING CO.

BLESILDA A. GUTIERREZ, CPA

Deputy Executive Director for Administrative
Services

ANTONIO GABRIEL
Service Sales Head

Funds Available:
VICTORIA V. ELIAS
OIC, Accounting Division

Budget Available:
ARACELI T. FACTOR
Bookkeeper

Signed in the presence of:

ELECIO L. TRIBUNALO
Chief, General Services Division

MARK CHEAN C. CHANCO

Sales Executive

ATTY. BERNARDO V. CABAL

Legal Counsel

ACKNOWLEDGEMENT
REPUBLIC OF THE PHILIPPINES)
_________________________) S.S
BEFORE ME, personally appeared:
Name

BLESILDA A. GUTIERREZ, CPA

ANTONIO GABRIEL

Competent Evidence of Identity

PRC Lic# 47565

Expiry Date

Issued At

July 13, 2016

Manila

They are both known to me to be the same persons who signed the foregoing document and
acknowledged to me that their signatures prove their free acts and the entities they represent.
SIGNED and SEALED on ________ in __________.
__________________________
Notary Public

Doc. No.: _______;

Page No.: _______;
Book No.: _______;
Series of 2015.
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