CONTRACT for MAINTENANCE and REPAIR

of SERVICE VEHICLE

KNOW ALL MEN BY THESE PRESENTS:

This Contract is made and entered into by and between:

The Cagayan Valley Center for Health Development (CV-CHD), a

government entity with office address at Carig, Tuguegarao City, Cagayan, duly
represented by RIO L. MAGPANTAY, MD, PHSAE, CESO III, in his capacity as the
Regional Director, hereinafter referred to as “PROCURING ENTITY”:

-and-

CIVIC MERCHANDISING INC. , an exclusive distributor of JMCC MOBILE

DENTAL VEHICLES engaged in selling and supplying spare parts and providing
services, with office address at San Fermin, Cauayan City, Isabela, represented by
Mr. PEDRO B. DE ASIS JR., hereinafter referred to as the “SERVICE PROVIDER”.

WITNESSETH

WHEREAS, the PROCURING ENTITY intends to engage the services of a

Service Provider duly authorized and with the necessary expertise, experience and
capacity to maintain and repair and/or replace parts/accessories of its DENTAL
HEALTH BUS for the Calendar Year 2019;

WHEREAS, the PROCURING ENTITY resorted to Direct Contracting as the

mode of Procurement and awarded this Contract to the SERVICE PROVIDER for being
the sole and exclusive distributor of automotive parts and services of MOBILE DENTAL
VEHICLES.

WHEREAS, the SERVICE PROVIDER has accepted to provide maintenance

and repair services for the aforementioned DENTAL HEALTH BUS under the terms and
conditions set forth below:

NOW THEREFORE, the Parties hereto agree and do hereby mutually bind
themselves as follows:

ARTICLE I
SCOPE OF SERVICES

1.1 COMPONENTS OF SERVICE.

1.1.1. The service provider shall provide all supplies, personnel, equipment, tools,
materials, and other items or services necessary to perform the management
and operation of Dental Health Bus maintenance functions;

1.2. PREVENTIVE MAINTENANCE.

Preventive maintenance is a term used to describe the performance of

regularly scheduled maintenance procedures of a vehicle to prevent the
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 possibility of malfunctions. Preventive maintenance shall be rendered every
1,500 km odometer reading or if the PMS is already imperative for the vehicles;

1.3. REPAIR

The PROCURING ENTITY will send the Dental Health Bus to the Service
Provider with the Repair Request Form (RRF) to estimate the cost of repairs to
be done, parts to be replaced and the cost of labor. The Service Provider will then
issue a quotation for the cost of labor and materials for the said
repair/maintenance of the service vehicle. The recommended repair and cost
estimate will then be submitted to the Procuring Entity’s authorized
representative for approval. The approved Repair Request Form shall serve as
an authorization to execute the recommended repair;

1.4. Additional repairs or replacement of parts may be allowed provided that such
additional was approved by the authorized personnel of the PROCURING
ENTITY;

1.5. The PROCURING ENTITY will provide list of personnel who are authorized to
administer and process the repair of the service vehicles.

ARTICLE II
RESPONSIBILITIES OF THE PROCURING ENTITY
2.1 The Procuring Entity shall pay all costs involved in the performance of its
responsibilities in accordance with the above-mentioned provisions.

2.2 The payment shall be made only upon a certification by the Head of the Procuring
Entity to the effect that the services have been rendered in accordance with the terms
of the contract.

2.3 The Procuring Entity shall pay the service provider, not to exceed 15 working days
upon receipt of Statement of Account with sales invoice for the repair/services
rendered and replacement of parts.

2.5 The currency in which the payment is made to the Second Party under the Contract
shall be in the Philippine Pesos.
ARTICLE III
REPONSIBILITIES OF THE SERVICE PROVIDER
Taxes and Duties

4.1 The Service Provider shall be entirely responsible for all the necessary taxes, license
fees and other levies for the completion of the Contract.

4.4 Manpower Requirement

The service provider shall ensure that employees or his/her service crew have the
technical know-how and capability to do the job required by the Procuring Entity for
the repair and maintenance of the Dental Health Bus. The accountability to the Dental
Health Bus will be transferred to the Service Provider while it was on their possession
during the period of repair so trustworthy, reliable and dependable crews/employees
are expected from the Service Provider.

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4.5 Manpower/Equipment Requirement

The service provider shall be an authorized dealer of Mobile Dental Vehicle parts and
shall provide warranties for all services performed. It shall provide genuine parts and
as a service provider, it shall provide maintenance services in line with the
maintenance intervals prescribed by the manufacturer.

4.6 The service provider shall only provide services only upon receipt of authorized
Repair Request Form from the Procuring Entity (See attached Form).

4.7 The service provider shall provide invoice for all services (spare parts and labor).

ARTICLE IV
LIQUIDATED DAMAGES

If the Second Party fails to perform the Services within the period(s) specified in
the Contract, the Procuring Entity shall, without prejudice to its other remedies under this
contract and under the applicable law, deduct from the contract price, as liquidated
damages, a sum equivalent to one-tenth of one percent (0.1%) of the unperformed portion
for every day of delay until actual performance is made, up to a maximum deduction of
ten percent (10%) of the contract price. Once the maximum is reached, the PROCURING
ENTITY located in Carig Norte, Tuguegarao City Cagayan, may consider termination of
this contract pursuant to Article VI of this Contract.

ARTICLE V
SETTLEMENT OF DISPUTES

7.1 If any dispute or difference of any kind whatsoever shall arise between the Procuring
Entity and the Second Party in connection with or arising out of the contract, the parties
shall make every effort to resolve amicably such dispute or difference by mutual
consultation.

7.2 If after thirty(30) days, the parties have failed to resolve their dispute or difference by
such mutual consultation, either the Procuring Entity or Second Party may give notice
to the other party of its intention to commence arbitration, as hereinafter provided, as
to the matter in dispute, and no arbitration in respect of this matter in dispute may be
commenced unless such notice is given.

7.3 Any dispute or difference in respect of which a notice of intention to commence

arbitration has been given in accordance with this Clause shall be settled by arbitration.
Arbitration may be commenced prior to or after performance of the Services under the
contract.

7.4 Any dispute between the Procuring Entity and the Second Party, the dispute shall be
resolves in accordance with Republic Act 9285 (RA 9285), otherwise known as the
“Alternative Dispute Resolution Act of 2004”.

7.5 Notwithstanding any reference to arbitration herein, the parties shall continue to
perform their respective obligations under the Contract unless they otherwise agree;
and the Procuring Entity shall pay the Second Party any monies due.

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 ARTICLE VI
TERMINATION

Either Party may terminate this Contract for breach of any provision thereof and
for other legal causes as provided under RA 9184. A written notice must be given to the
other Party at least two (2) weeks before the intended date of termination.

Assignment of Rights

The Second Party shall not assign his rights or obligations under the Contract, in
whole or in part, except with the Procuring Entity’s prior written consent.

ARTICLE VII
AMENDMENT

Except as expressly provided in the Contract, no modification of the terms and

conditions or any of the provisions hereof shall be made except by a written instrument
which shall be signed by both parties hereto.

ARTICLE VIII
EFFECTIVITY

This Contract shall take effect on _________________________up to

______________________.

IN WITNESS WHEREOF, parties hereto have set their hands this ______ day of
__________ at Tuguegarao City, Cagayan.

RIO L. MAGPANTAY, MD, PHSAE, CESO III PEDRO DE ASIS JR.

PROCURING ENTITY SERVICE PROVIDER

Witnesses:

NEIL BRYAN U. AGLUGUB _________________________________

Accountant III Representative of the Service Provider

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 ACKNOWLEDGMENT

Republic of the Philippines)

City of Tuguegarao ) s.s
Province of Cagayan )

BEFORE ME, a Notary public, this ___ day of ____, 2019 in _______, personally
appeared the following persons:

NAME Government Place/ Date of

Issued I.D Issue
RIO L. MAGPANTAY, MD, PHSAE, CESO III
PEDRO DE ASIS JR.

Known to me be the same persons who executed the foregoing document,

consisting of five (5) pages including this page on which this acknowledge is written and
signed by the parties on every page thereof and acknowledged to me that the same is their
free act and deed.

WITNESS MY HAND AND SEAL, the day, year and place above written.

(Notary Public)

Doc. No. _________

Page No. _________
Book No. _________
Series of 2019.