Republic of the Philippines. DEPARTMENT OF FINANCE Roxas Boulevard Corner Pablo Ocampo, Sr. Street Manila 1004

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1 Republic of the Philippines DEPARTMENT OF FINANCE Roxas Boulevard Corner Pablo Ocampo, Sr. Street Manila 1004 RECEIVING COpy September 17, 2015 Mr. ANTONIO D. KALAW President Devetopment Academy of the Philippines DAP Building, San Miguel Avenue Pasig City Subject: NOTICE TO PROCEED Dear Mr. Kalaw: In view of the award of the contract to your company, you are hereby given Notice to Proceed with the contract for the Engagement of Consultancy Services for the Development of a Quality Management System (QMS) Certifiable to ISO 9001:2008 for the Department of Finance (the "Contract''). The effective date of the Contract is upon receipt of this Notice to Proceed and shall be in full force for the project duration of seven (7) months, unless sooner terminated by either party upon mutual agreement. Very truly yours, ~O~~G Undersecretary ".:.::: " " <:!:! ",,". ~... :::::.:::::~ate: CbNFORME: Mr. Antonio President D. Kalaw :; 28. t"' fj c t. J {.,.~)

2 Republic of the Philippines DEPARTMENT OF FINANCE Roxas Boulevard Corner Pablo Ocampo, Sr. Street Manila 1004 September 4, 2015 Mr. ANTONIO D. KALAW President Development Academy of the Philippines DAP Building, San Miguel Avenue Pasig City Subject: NOTICE OF AWARD Dear Mr. Kalaw: We are pleased to inform you that your bid equivalent to Two Million Nine Hundred Twenty One Thousand Four Hundred Ninety Eight Pesos (PhP2,921,498.00), VAT inclusive, for the contract for the Engagement of Consultancy Services for the Development of a Quality Management System (QMS) Certifiable to ISO 9001:2008 for the Department of Finance is hereby accepted. You are therefore required to provide the Performance Security within ten (10) days from receipt hereof. Failure to comply will constitute sufficient ground for the cancellation of this award and forfeiture of the bid security.... CONFORME: Very truly yours, (j..{t(~ CARLO A. ClRAG Undersecretary Date: Mr. Antonio D. Kalaw President

3 I(J.,!l~'l\ Know all Men by These Presents: MEMORANDUM OF AGREEMENT This Memorandum of Agreement made and entered by and between: The DEPARTMENT OF FINANCE, a government agency with principal office at the DOF Building, Roxas Boulevard, Malate, Manila, represented herein by Undersecretary CARLO A. CARAG, hereinafter referred to as the "DOF"; I and The DEVELOPMENT ACADEMY of the PHILIPPINES, a government institution, duly organized and existing under and by virtue of Presidential Decree No. 205, as amended with principal office address at the DAP Building, San Miguel Avenue, Ortigas Center, Pasig City, represented herein by its President, ANTONIO D. KALAW, JR. hereinafter referred to as the "DAP"; Hereinafter, collectively referred to as "PARTIES" - WITNESSETH, that - WHEREAS, in line with the need for government agencies to improve quality in their operations and service delivery in the light of the Administration's thrust to adopt transformational leadership, the approved Philippine Development Plan (PDP) cites enhancing and standardizing the quality of public service delivery to become consistent with the requirements of the International Organization for Standardization (ISO); I ~8 ~ ~ d) ~ t> d) r:n ~ d) "0 8 < ~~ ~i... ft ~ ~~ ~... C,!) ~ ~CI) WHEREAS, the Executive Order No. 605, Institutionalizing the Structure, Mechanism, and Standards to Implement the Government Quality Management Program, was issued to all departments and agencies under the executive branch, government-owned and controlled corporations, and government financial institutions to enhance public sector efficiency and citizen's satisfaction;. WHEREAS, the PDP strengthens compliance to Executive Order (EO) No. 605 to ensure the consistency of products and services through quality processes; WHEREAS, the DOF, in conjunction with its mandate of being the steward of sound fiscal policy, would like to transform its current management system into an ISO 9001-certified quality management system; WHEREAS, the DAP, as member of the Technical- Working Group on Advocacy and Capability-Building of the Government Quality Management Committee, and as the National Productivity Organization, spearheads the development of productivity consciousness and promotes the principles, techniques, and practice of productivity and quality in key sectors of the economy; WHEREAS, in order to comply with EO No. 605, the DOF is in need of an independent service provider to undertake the consultancy services for the development of quality management system certifiable to ISO 9001:2008. NO''', THEREFORE, for and in consideration of the foregoing premises, the Parties agree as follows: ~~ d< ~ o ~ 'l~~ ~u:::> ~ ti ~.. 0- <! C Section 1. Scope of Work/Description of the Project. The Parties hereby undertake to perform the Project entitled "Development of a Quality Management System (QMS) Page 1 of 16

4 1.\.' Certifiable to ISO 9001:2008 for the Department of Finance (DOF)", more particularly described in the Project Proposal attached hereto and made an integral part hereof as Annex "A". Section 2. Obligations of the DAP. The DAP shall: J3 a. Organize a team who will conduct the project within the agreed timeframe;! J ~ 8 ~ b. Prepc:r.e the program and course designs for all the training and workshop <; ~ activrties; c. Provide log~stical arrangements ~or the trah~ing sessi?~s such.as venue, : ~ accommodations, meals, snacks, equipment, supplies and trammg matenals; ~ d. Provide supplies and materials needed for writeshops and technical guidance G S sessions; e. Provide transportation (local transportation) for.the DAP Project Team, from DAP Office, Pasig City to meeting venue during writeshops, technical guidance sessions and gap readiness assessment sessions and vice-versa; f. Provide resource person/s and facilitator; g. Provide certificates to qualified participants of training courses conducted; h. Review the draft Quality Manual, Quality Policy, Quality Procedures, Operations Manual and Forms, and recommend necessary revisions to ensure their alignment with ISO 9001:2008 standard; 1. Conceptualize, design, lay-out, produce and package one Master Copy and one hundred fifty (150) additional copies of the approved initial version of the Quality Manual and Six Mandatory Procedures of the Department of Finance for distribution; and, J. Provide teclmical advice and guidance to counterpart team in the establishment and implementation of Quality Management System for DOF's mandates that are being performed by the Municipal Development Fund Office and the Revenue Operations Group. Section 3. Obligations of the DOF. The DOF shall: a. Designate a counterpart support team who will work closely with the DAP project team regarding teclmical and administrative requirements of the project, including the monitoring of the progress of the various project activities; b. Provide transportation for the participants and DAP Project Team to and from the venue during training sessions; c. Provide logistical arrangements for writeshops, technical guidance sessions and gap assessment sessions such as meeting venues and meals and snacks for the participants and DAP Project Team; d. Draft the Quality Manual, Quality Procedures, Operations Manual, and Forms with guidance from DAP project team; e. Ensure implementation of relevant project activities and provide policy support for the implementation of quality systems and procedures adopted by the DOF; and, f. Ensure availability and participation of concerned staff/participants durin~ the conduct of training courses and other activities necessary in the course of the project. Section 4. Statement of Consideration (Fees). For and in consideration of the services of the DAP, the DOF shall pay the DAP the sum of Two Million Nine Hundred Twenty-One Thousand Four Hundred Ninety-Eight Pesos (PHP 2,921,498.00), inclusive of the 12% VAT, payable as follows: Activity/Expected Output Cost (PhP) 15% Upon submission of Project Work Plan 438,225 15% Upon completion of the Initial Gap Assessment 438,225 Page 2 of 16

5 i 1\.'..~ Activity/Expected Output Cost (PhP) 15% Upon completion of Training Course on ISO 9001 : ,225 QMS Requirements and Documentation 15% Upon completion of reviewed documents 438, Quality Manual 2. QMS Mandatory Procedures a. Control of Documents b. Control of Records c. Internal Quality Audit d. Control of Non conforming Product e. Corrective Action f. Preventive Action 10% Upon submission of printed copies of the Quality Manual 292,150 and Six Mandatory Procedures 10% Upon completion of Training Course on Basic 292,150 Productivity and Quality Improvement Approaches 10% Upon completion of Training Course on Internal Quality 292,150. Audit (IQA) 5% Upon completion of Technical Guidance on IQA and 146,074 Management Review 5% Upon submission of Readiness Assessment Report 146,074 TOTAL (PhP) 2,921,498 A Certificate of Availability of Funds duly signed by the DOF's FinancelBudget Officer, is hereto attached and marked as Annex "B" and made an integral part of this Agreement. The DOF shall pay DAP an additional fee of Five Thousand Pesos (PhP 5,000.00) inclusive of 12% VAT, per participant per day in excess of twenty-five (25) participants up to a maximum of thirty (30) participants per training batch. In the event this Agreement is terminated for causes not attributable to the DAP, the DAP shall be entitled to payment determined on a pro rata basis for services satisfactorily performed or delivered as well as reimbursement for reasonable expenses incurred in performing its obligations prior to the termination. Section 5. Confidentiality. Each party undertakes not to divulge at any time to any Ithird person any confidential information relating to the other, except upon prior written consent of the other or by a valid order of a court or other governmental authority with competent jurisdiction. Section 6. Intellectual Property Rights. All materials and work provided by the DAP shall belong exclusively to DAP and shall not be used for any purpose other than the implementation of this Agreement. Any use, reproduction, publication, sale or distribution of these materials and work shall be subject to the prior written consent of the DAP and such other terms as DAP shall require. Any original work created arising out of or in connection with this Agreement shall belong to the DAP, except where the original work uses any data or material belonging to DOF, in which case, the work shall be owned jointly by the parties, with each party having royalty free non-exclusive and irrevocable license to use, publish, copy, reproduce or distribute the work for government or public purposes. Section 7. Liability. The DAP shall not be liable to DOF for loss or damage to the DOF's property unless due to the gross negligence or breach of this Agreement. The DAP shall not be liable to DOF for any indirect, special or consequential loss arising out of or in connection with the provision of goods and the services pursuant to this Agreement and the total liability of DAP for any other loss of DOF arising out of or in connection with this Agreement in respect of any event shall not exceed the charges payable by DOF to the DAP for the Project. Page 3 of 16

6 Section 8. Indemnity. The DOF shall indemnify and hold the DAP free and harmless from any and all claims or causes of action of third parties arising from a negligent or otherwise wrongful act, or omission by thedof or its employees or representatives. ' Section 9. Warranties. All conditions and warranties whether expressed or implied by law or otherwise (including but not limited to those as to description, merchantability or fitness for a particular purpose) are excluded from this Agreement. Section 10. of Term of the Agreement. This Agreement shall become effective upon execution thereof and shall be valid and subsisting until the final and satisfactory fulfillment by the Parties; provided, however, that there shall be flexibility in the Project duration as long as the specified Project deliverables agreed upon by the Parties are met. Section 11. Changes. If changes under this section should result in an increase or decrease in the services originally provided and scheduled, an equivalent adjustment on the contract frice, time or both shall subsequently be agreed upon in writing by both Parties. ' Section l2. Force Majeure. No party shall be liable to the other for the delay or nonperformance of its obligations under this Agreement arising from any cause or causes beyond its reasonable control, including, without limitation, any of the following: act of God, government act, war, fire, flood, explosion or civil commotion. Section 13. Termination. The following events shall entitle the party not in breach to terminate this agreement by immediate written notice: (1) Failure on the part of DOF to make punctual payment of all sums due to the DAP, within two weeks from date of receipt of billing statement, under the terms of this Agreement; (2) Failure on the part of the DAP to remedy any breach of its obligations hereunder within fifteen (15) days following written notice from DOF specifying the breach with full particulars; and, (3) Any serious and persistent breach by either party of any provision of this Agreement. The Parties may terminate this Agreement upon mutual agreement.! Section 14. Dispute Settlement or Arbitration. All disputes and controversies arising out of in connection with this Agreement, or for breach of any provision hereof, which cannot be solved by the herein contracting Parties, shall be settled through Arbitration in accordance with PD 242 in relation to Sections 66, Chapter XIV, Book IV of the Administrative Code of 1987, in conjunction with Section 10, Chapter 3 Book VII, of the same code. The venue of any legal action arising out of this Agreement court in Pasig City. ' shall be brought to the proper Section 15. Amendments. No amendment or modification of any of the terms and conditions of this Agreement shall be valid unless evidenced by a written Agreement executed by the Parties' respective authorized representatives. Section 16. Severability. If any part of this Agreement is declared unenforceable or void, the rest of the Agreement shall nevertheless remain in full force and effect. Section 17. Waiver. No failure, omission or delay of any of the Parties in exercising any of its right, privileges and remedies hereunder shall operate as a waiver thereof. No waiver or departure from the terms of this Agreement shall be valid unless made in writing and signed by the party's authorized representative. Such waiver shall be effective only in the specific instance and for the purpose for which it is given. Page 4 of 16

7 , \. Section 18. Assignment. The benefit of this Agreement may not be assigned in whole or in part by a party without the prior written consent of the other. Section 19. Binding Effect. This Agreement shall be binding on the Parties and their respective successors-in-interest. IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the day of 2015in _ DEPARTMENT OF FINANCE DEVELOPMENT ACADEMY OF THE PHILIPPINES By: ~~O---p CARLO A. CARAG Undersecretary Signed in the presence of: d\f- 'I- ~fk- GIL S. BELTRAN Undersecretary WITNESSES MAG~ND~ZA Senior Vice President Page 5 of16

8 i '.,' ACKNOWLEDGMENT REPUBLIC CITY OF OF THE PHILIPPINES) l_.~_a_i~_iu_! \ _-~ --,; S.S. ~ \(\N 'Ltn~ ~! BEFORE ME, on this 2 \.)day of 2015 at _'.A_t\_~'_i~i;_g.,_f., personally appeared the following public officials, namely: CARLO A. CARAG, with TIN , in representation of the DOF; -and- ANTONIO D. KALA W, JR., with identification number , in representation of the DAP who are known to me to be the same officials who executed the foregoing instrument and they both acknowledged to me that the same is their free and voluntary act and deed and that of the government agencies they represent therein. This instrwnent consisting sixteen (16) pages including this page and Annexes "A and B" on which this acknowledgment is written and signed by the parties and their instrumental witnesses on the right hand margin of each page thereof and at bottom of the same instnunent on page "5", refers to a Memorandum of Agreement executed for the purpose(s) therein set fu~. I WITNESS MY SIGNATURE AND NOTARIAL SEAL on the date and place first above written. '-, Doe No. Page No. Book No. Series of2015. Page 6 of16

9 , " ", '; " ANNEXA A Project Proposal for the Department of Finance (Version 03) Project Title: Development Certifiable to Finance of a Quality Management System ISO 9001 :2008 for the Department of Submitted by: Center for Quality and Competitiveness Development Academy of the Philippines DAP Building, San Miguel Avenue Ortigas Center, Pasig City Telefax nos. (02) / (02) This document has been prepared by and remains the sole property of the Development Academy of the Philippines (DAP). It is submitted solely for use by the requesting office in evaluating DAP's qualifications and/or proposal in connection with the purpose with which it was prepared. Recipient agrees, by its acceptance of this document, to return the document upon DAP's request, not to reproduce, copy, lend or otherwise disclose the contents directly or indirectly, and not to use it for any purpose other than that for which it was specifically furnished. Page 7 of16

10 " ":'i- I. BACKGROUND / RATIONALE The need for government agencies to improve quality in their operations and service delivery has never been more urgent in the light of the Administration's thrust to adopt transformational leadership. The approved Philippine Development IPlan (PDP) cites enhancing and standardizing the quality of public service delivery to become consistent with the requirements of the International Organization for Standardization (ISO). Under Chapter 7, ensuring high quality, effective, efficient, transparent, accountable, economically and physically accessible, and non-discriminatory delivery of public service are the key elements of the strategic framework to create an enabling environment for citizens and the private sector to reach their full potential. The PDP strengthens compliance to Executive Order (EO) No. 605, Institutionalizing the Structure, Mechanisms, and Standards to Implement the Government Quality Management Program (GQMP), which was issued to effect improvement in public sector performance by ensuring the consistency of products and services through quality processes. Effective management and good governance are essential elements of quality that can be achieved through an effective Quality Management System (QMS). Aligning an organization's planning, service, and support operations to ISO 9001 International Standards is one reliable approach in establishing QMS. This methodology provides a clear perspective of the quality system requirements and the areas of control to assure the consistency in the quality of services and continuous process improvement that will generate approaches to improve customer/citizen satisfaction.! The value of developing an ISO 9001:2008 Certifiable QMS has been recognized by the Department of Finance (DOF) as a crucial step that will enable them to continue to live up to their mandate. As the country's "steward of sound fiscal policy," the Department is tasked with crafting revenue policies to ensure that government programs, especially those aimed to promote the people's welfare, accelerate economic growth and stability, are having their proper share in government funds (Source: Department of Finance Website). To support the achievement of the Department's vision of "a strong economy with strong growth, equity and productivity," the Academy's Center for Quality and Competitiveness is proposing the project: Development of a Quality Management System Certifiable to ISO 9001:2008 for the Department of Finance. The ISO 9001 shall provide a globally recognized standard that would transform current management system to a certified QMS (Source: Department of Finance Website). H. OBJECTIVES The project aims to provide the necessary interventions to facilitate the establishment of ISO 9001:2008 QMS for the DOF. Specifically, it shall: a. Enhance understanding and appreciation of the DOF officers and staff on the principles and requirements ofiso 9001:2008 quality management system; b. Develop the capabilities of key officers and staff of the DOF in preparing for and sustaining the ISO 9001 certification; and, c. Prepare the documentation and implementation requirements for the certification of the DOF QMS and for maintaining and sustaining the established QMS. Page 8 of 16

11 III.DAP'S SCOPE OF WORK a. Development and conduct of customized Training Course on ISO 9001 :2008 Requirements and Documentation; Training Course on Internal Quality Audit (IQA) and Training Course on Basic Quality and Productivity Improvement Approaches for the QMS Core Team and selected officers and staff of the DOF. -2 ~ 8 b. Provision of technical guidance on establishing the quality policy, quality manual, ~ ~ is quality objective, plans, and quality procedures covering the DOF's frontline services ~~ ~ administered by the Municipal Development Fund Office and the Revenue Operations' ~ g G v: ~ roup. ~.g c. Provision of technical guidance in cascading and implementing the QMS in the D'OF. 0 d. Conduct of readiness review/assessment of the QMS and recommend final preparations for the ISO 9001 :2008 certification processes. IV. PROJECT COMPONENTS AND METHODOLOGY To realize the project's objectives, the following shall be undertaken: A. ESTABLISHING AND DOCUMENTING THE QMS 1. Training Course on ISO 9001:2008 QMS Requirements and Documentation The DAP project team shall conduct training on ISO 9001 :2008 QMS requirements and documentation to develop an in-depth understanding of QMS concepts, principles and requirements, and to facilitate documentation of the following: a. Quality Manual b. Six (6) QMS Mandatory Procedures During the training course, the DAP project team shall also provide guidance to the participants in developing the structure and format for the DOF's QMS documentation. Expected Outputs QMS Core Team members trained on the requirements of the ISO 9001:2008 standard and on QMS documentation Twenty-five (25) participants including core team members, key officers, and staff No of Batch ' One (1) batch Three (3) days 2. ISO 9001 Quality Planning The DAP project team shall guide the core team in establishing quality objectives and plans at the organizational and functional levels in preparation for ISO 9001 Certification. The ISO 9001 Quality Planning shall serve as a guide for the core team in the achievement of the quality policy of the DOF. Expected Outputs Draft Quality Policy, objectives and plans Twenty-five (25) participants including core team members, key officers, and staff : Two (2) days Page 9 of16

12 3. Technical Guidance on QMS Documentation DAP project team shall provide technical guidance to the QMS Core Team in the following activities: a. b. c. Documentation of the Quality Manual ~ t) This will involve guidance on the establishment of mechanism on (1) J ~~ management of resources to support QMS; (2) control of core/frontline ~ ~ ~ service delivery; (3) customer satisfaction determination; (4) control Of:fJ ~ outsourced. services; (5) competency-based HRD; and (6) management, ~ ~ ~~ ~~ Documentation of the Six (6) Mandatory QMS Procedures Documentation of Work Instructions and Forms The DAP's guidance shall focus on ensuring that DO'F meets the above mentioned requirements, as well as the requirements of the ISO' 9001 Standards. The actual crafting of customer satisfaction determination, competency-based HRD, among others shall be done by the DO'F QMS Core Team. Expected Outputs : Finalized Quality Manual, Six (6) QMS Mandatory Procedures, and Standard Operating Procedures/Work Instructions for approval and implementation : QMS Core Team members and key officers and staff : Fifteen (15) days spread over a period of three (3) months 4. Production of Quality Management System Documents The DAP Project Team, following the completion and finalization of the Quality Manual and the Six (6) Mandatory Procedures, shall conceptualize, design, lay-out and, subject to the approval of the DO'F Core Team, produce the master copy of these QMS documents. The DAP shall likewise produce these documents for distribution within the DOF. ' Expected Outputs : Printed and Packaged Master Copy of the Quality Manual and Six (6) QMS Mandatory Procedures and one hundred fifty (150) copies for distribution : Forty-five (45) days from approval of final lay-out B. IMPLEMENTING THE QMS 1. Technical Guidance on QMS Implementation The DAP' project team shall provide technical guidance to the QMS Core Team during the implementation of the established QMS. Expected Outputs : Monitoring and technical advice/inputs to enhance the implementation of the established QMS : QMS Core Team members and key officers and staff : Eight (8) days spread over a period of one (1) month 2. Training Course on Basic Productivity and Quality (r&q) Improvement Approaches A three-day session on the use of basic quality and productivity improvement approaches, such as SS and Work Improvement Team (WIT), shall be conducted to develop the awareness and understanding of core team members, key officers Page 10 of16

13 'I~ and staff on the basic tools for good housekeeping applications to the established QMS. and problem solving, and their Expected Outputs QMS Core Team members having awareness and understanding of the concepts and applications of basic quality and productivity improvement approaches ~ C; Twenty-five (25) participants including core team c --.J ~ 0 I ~ ~ n members, key officers and staff. ~~ ~ No of Batch One (1) batch '- ~ t)... Three (3) days. g Cl) ~ ~.g 3. Training Course on Internal Quality Audit (IQA) ~ ~ The DAP project team shall conduct training on internal quality audit and facilitate workshops on establishing the Internal Quality Audit Program. This training includes mock-audit to guide and enhance auditing skills of the participants. The training shall enable participants to understand, interpret and audit ISO-QMS requirements, as well as, address audit findings. Expected Outputs IQA team leaders and members able to perform internal quality audit from planning to execution, and reporting of No of Batch audit findings Twenty-five (25) participants including core team members, designated internal quality auditors, and key officers and staff One (1) batch Four (4) days 4. Technical Guidance on Internal Quality Audit (IQA) The DAP project team shall provide technical guidance on the first conduct of Internal Quality Audit and recommend corrective actions to address audit findings. Expected Outputs : Technical advice/inputs to enhance the conduct of Internal Quality Audit (IQA) : QMS internal quality auditors and staff : Four (4) days 5. Technical Guidance on Management Review The DAP project team shall provide technical guidance in facilitating the first Management Review meeting to evaluate the effectiveness of QMS. Expected Outputs Feedback/recommendations to enhance the conduct of management review and the effectiveness of the QMS Four (4) days I C. QMS GAP ASSESSMENT AND EVALUATION 1. Initial Gap Assessment The DAP project team shall conduct an initial gap assessment of the current quality management practices of DOF and shall determine its specific needs with regard to ensuring that requirements of ISO 9001:2008, applicable to each process, are addressed. Appropriate actions shall be planned to address the quality management gaps between the present practices and ISO 9001 :2008 standard requirements. Page 11 of 16

14 Expected Outputs Initial Gap Assessment Findings and Recommendations Key officers and staff representing the management, core and support processes of DOF Three (3) days 2. Final Gap Assessment and Readiness Review c,j ~ 8 -.."". ~ ~ The DAP project team shall conduct a final gap/readiness assessment of the:}j' ~ i' established QMS and shall recommend necessary actions to eliminate the gaps, if ~ ~ any. Likewise, the DAP project team shall recommend final preparations fof ISO ~ ~ 9001 :2008 Certification. ' ~ :5 Expected Outputs : Readiness Assessment Findings and Recommendations Identified personnel from each functional unit : Five (5) days D. PROJECT CLOSURE The DAP project team shall submit the completion report containing the highlights of the project and the documentation of the various activities conducted in the implementation. Expected Output : Project Terminal Report submitted : Within one (1) month after the management review or readiness assessment V. PROJECT DURATION AND COST The project, which is expected to be completed within seven (7) months, has a total cost of Two Million Nine Hundred Twenty-One Thousand Four Hundred Ninety-Eight Pesos (PHP 2,921,498.00), inclusive of 12% VAT. Activity/Expected Output Venue PSF* OPC** Cost (Php) Initial Gap Assessment Month 1 DOF 62,400 12,000 74,400 Training Course on ISO 9001 :2008 QMS Requirements and Documentation Month 2 DAPCC 179, , ,860 ISO 9001 Quality Planning Month 2 DOF 86,800 9,000 95,800 Technical Guidance on ISO 9001:2008 QMS Months Documentation and 3-6 Implementation DOF 360,800 79, ,800 Training Course on Basic Productivity and Quality Month 4 DAPCC 179, , ,860 Approaches Improvement! Training Course on Internal Quality Audit Technical Guidance on Internal Quality Audit Month 5 DAPCC 222, , ,360 Month 6 DOF 63,000 15,000 78,000 Page 12 of16

15 ActivitylExpected Output Venue PSF* OPC** Cost (Php) Technical Guidance on Management Review Readiness Assessment Month 6 DOF 63,000 15,000 78,000 DOF Submission of Readiness Month ,400 17, ,400 N/A Assessment Report Production of Quality Manual and Manuals of Procedures *PSF- Professional Months 5-6 VI. PROJECT TERMS AND CONDITIONS A. The DAP shall: I N/A 60, , ,000 SUBTOTAL 1,380,580 1,227,900 2,608,480 12% VAT 313,018 TOTAL COST 2,921,498 Service Fees **OPC- Out of Pocket Cost 1. Organize a team who will conduct the project within the agreed timeframe; 2. Prepare the program and course designs for all the training and workshop activities; 3. Provide logistical arrangements for the training sessions such as venue, accommodations, meals, snacks, equipment, supplies and training materials; 4. Provide supplies and materials needed for writeshops and technical guidance sessions; 5. Provide transportation (local transportation) for the DAP Project Team, fromldap Office, Pasig City to meeting venue during writeshops, technical guidance sessions and gap readiness assessment sessions and vice-versa; 6. Provide resource personls and facilitator; 7. Provide certificates to qualified participants of training courses conducted; 8. Review the draft Quality Manual, Quality Policy, Quality Procedures, Operations Manual and Forms, and recommend necessary revisions to ensure their alignment with ISO 9001 :2008 standard; 9. Conceptualize, design, lay-out, produce and package one Master Copy and one hundred fifty (150) additional copies of the approved version of the Quality Manual and Six Mandatory Procedures of the Department of Finance for distribution; and, 10. Provide technical advice and guidance to counterpart team in the establishment and implementation of Quality Management System for DOF's mandates that are being performed by the Municipal Development Fund Office and the Revenue Operations Group. B. The DOF shall: 1. Designate a counterpart support team who will work closely with the DAP project team regarding technical and administrative requirements of the project, including the monitoring of the progress of the various project activities; 2. Provide transportation for the participants and DAP Project Team to and from the venue during training sessions; 3. Provide logistical arrangements for writeshops, technical guidance sessions and gap assessment sessions such as meeting venues and meals and snacks for the participants and DAP Project Team; Page l3 of 16

16 4. Draft the Quality Manual, Quality Procedures, Operations Manual, and Forms with guidance from DAP project team; 5. Ensure implementation of relevant project activities and provide policy support for the implementation of quality systems and procedures adopted by the DOF; 6. Ensure availability and participation of concerned staff/participants during the con.duct of training courses and other activities necessary in the course ~f the,j ~ t) project;. ""--- ~ Q 7. Pay an additional fee of Five Thousand Pesos (Php 5,000.00) inclusive of 12% ~~ ~ VAT, per participant per day in excess of twenty-five (25) up to a maximum of.. ~ ~ thirty (30) participants; and, < ~ ~ 8. Pay the project cost to the Development Academy of the Philippines in accordance ~.g to the following schedule: C,!) ~ Activity/Expected Output Cost (PhP) 15% Upon submission of Project Work Plan 438,225 15% Upon completion ofthe Initial Gap Assessment 438,225 15% Upon completion of Training Course on ISO 9001: ,225 QMS Requirements and Documentation 15% Upon completion of reviewed documents 438,225 l.quality Manual 2.QMS Mandatory Procedures a. Control of Documents b. Control of Records c. Internal Quality Audit d. Control of Non conforming Product e. Corrective Action! f. Preventive Action 10% Upon submission of printed copies of the Quality Manual 292,150 and Six Mandatory Procedures 10% Upon completion of Training Course on Basic 292,150 Productivity and Quality Improvement Approaches 10% Upon completion of Training Course on Internal Quality 292,150 Audit (IQA) 5% Upon completion of Technical Guidance on IQA and 146,074 Management Review 5% Upon submission of Readiness Assessment Report 146,074 TOTAL (PhP) 2,921,498 VII. PROJECT WORK PLAN ACTIVITY Initial Ga Assessment Training Course on ISO 9001 :2008 QMS Requirements and Documentation ISO 9001 Quality Plannin Technical Guidance on ISO 9001 :2008 QMS Documentation and Im lementation Production of Quality Manual and Six Mandatory Procedures Month Month Month Month Month Page 14 of 16

17 ACTIVITY Training Course on Basic Productivity and Quality A roaches Im rovement Training Course on Internal Quality Audit (IQA) Technical Guidance on Internal Quality Audit (IQA) and Management Review Readiness Assessment Month Month Month 123 Month Month Month 567 Page 15 of 16