Procurement Guidelines

511.0 GENERAL1.1 The term \"Procurement'' as used in this Project Procurement Procedure includes all activities required by the Strategic Procurement Unit ( SPU ) to initiate inquiries, perform selec- tion of Vendors, Purchasing, Expediting, Inspection, Coordi- nation, Transportation and Logistics, Insurance, delivery of equipment and materials to the Project Site including im- portation of overseas supplied equipment and material, and related activities in connection of equipment, materi- als, drawings and documents as required by the Project.1.2 The purpose of this Procedure is to define the organization, responsibilities, tasks and working procedures related to Special Projects under the Magsaysay Group of Companies and Affiliates.2.0 DEFINITIONS AND GLOSSARY• Special Project any project decided by management that is outside normal operations of the Strategic Business Unit or Strategic Support UnitBidder a company or organization to whom an Invitation toBid document has or will be issued / a person or organizationBUSINESS NAMEmaking a formal offer for materials or services• CBE — Commercial Bid Evaluation• CBT — Commercial Bid Tabulation• ITB — Invitation to Bid document• JV — Joint Venture between Magsaysay and othercompanies• MR — Material Requisition• PPP — Project Procurement Procedure Procurement as used within this PPP shall include, in theirentirety or Individually as the context may imply, the follow-ing: Purchasing Expediting Testing & Inspection Logistics• Project Management Committee (PMC) a committee thatdiscusses and recommends strategies for special projectsprocurementMembers include Requestor, Project Manager, ProjectOwner, Procurement officers and Chief Procurement Officer• Contractor — a company or organization which providesservices or Materials.

523.0 SCOPE OF SERVICES AND RESPONSIBILITIES 3.1 This Special Project Procurement procedure (SPP) applies only to Procurement services, materials and equipment for this Project. 3.2 All Procurement activities include the issuance of ITB, and Purchase Order (which is subjected to the approval of the contracting strategy by PMC), expediting and logistics arrangements to Project Site. All Procurement activities shall be carried out in full compli- ance with PPG General Working Procedures for Procurement except where indicated otherwise within this PPP.4.0 PURCHASING 4.1 Material Requisition (MR) 4.1.1 A Material Requisition shall be issued by the Re- questor for equipment and material 4.1.2 The Requestor shall ensure that all items to be sup- plied, and instructions to be complied, by the BIDDERS are reflected within the Material Requisition 4.1.3 As a minimum, the Material Requisition shall in- clude, but is not limited to: + Definition of abbreviations and terms used + Reference Documents + Applicable Design Codes and Standards 4.1.3.1 Overview of material or scope of supply + Vendor's responsibilities and obligations + Testing and Acceptance criteria 4.1.3.2 Spare Parts requirements + Documentation requirements + Quality Assurance requirements + Other requirements such as safety, maintenance, trans-portation etc.

534.2 Material Classification 4.2.1 Materials are classified according to the nature of their criticality (technically and availability.) 4.2.2 SPU together with the concerned SSU/SBU technicalrepresentative shall identify the criticality classes or group ofequipment and materials based on their impact of failure,in terms of loss of revenue; delay, threat to life and health;and damage to environment and property. 4.2.3 Criticality rating of packages are classified as fol-lows:RATING CRITICALITY A Very Critical B C Critical D Slightly Critical Non Critical 4.2.4 The Material Classification provides a basis for the appropriate requirements to be addressed in the Material Requisition and necessary activities to be performed duringtheBUSINESS NAME Procurement processes. 4.3 Approved Bidders List 4.3.1 Bidders shall be selected on the basis of their prov- en track record to satisfy the Project requirements . 4.3.2 Buyer shall get an approval on the Bidders List from PMC for packages / material under criticality rating 'A' or 'B' or budget value of PHP 5 million and above estimated pur- chase value, prior to issuance of ITB. 4.3.3 Among the criteria screened in qualifying the Bid- ders into the Project Bidder's List include, but is not limited to the following : + Technical ability + Competitive pricing + Quality system + Reliability of delivery schedule + Overall track record + Manufacturing Capacity

544.4 Bidding Stage 4.4.1 Upon receipt of the Material Requisition (MR) orProcurement Plan, SPU shall assign the MR to the respectiveBuyer. 4.4.2 The Buyer shall initiate the Bidders List which pro-vides the particulars of selected Bidders to whom the ITB is tobe issued. SPU and SSU/SBU representative shall review andapprove the Bidders List prior to the issuance of the ITB. 4.4.3 Bidders may be added or removed to the BiddersList by the Project Procurement Manager or by thePMC member during the Overall Contracting StrategyPresentation and minuted accordingly. 4.4.4 Bids based on two tier evaluation, if proposed, shallbe required for all enquiries irrespective of criticality rating.Technical bids are opened and evaluated first. Upon receiptof the approved TBE/TBT by the CLIENT representative, com-mercial evaluation is to be conducted ONLY on technicallyacceptable bidders. 4.4.5 The ITB package shall be couriered or emailed tothe attention of the SPU Buyer. 4.4.6 As a minimum, the ITB package shall contain thefollowing, but not limited to : 4.4.6.1 Cover Letter of \"Invitation To Bid\" 4.4.6.2 Instruction to Bidders being a document which explains the requirements pertaining to the presentation, content and submission of the Bid, 4.4.6.3 Material Requisition /Procurement Plan be- ing a document provided by SSU/SBU representative and assisted by SPU to define vendor's scope of work, applicable design codes and standards, technical requirements, documentations, tests, etc. 4.4.6.4 General Purchasing Conditions which speci- fies the basic contractual terms and conditions to be accepted and met by the Vendor. 4.4.6.5 Separate forms for the Bidder to clearly re- flect his costs against the main Scope of Supply, Spare Parts, Special Tools & Equipment, Consuma- bles, Inspections, Tests, Vendor Documentation, and provision of Supervisory Personnel.

55 4.4.7 After issuance of the ITB through email, the as- signed SPU Buyer shall expedite the receipt of Acknowledge- ment of ITB from Bidders as per the time given on the ITB cov- er letter. 4.4.8 Assigned SPU Buyer shall coordinate all Technical Clarifications (through SSU/SBU representative) and Commer- cial Clarifications for the ITB respectively, if any. 4.4.9 All Bidders shall submit their Bids by the Bid Closing Date directly to the SPU department at the 18th Floor of Times Plaza Building, or upon an agreed extension date thereto (SPU Head to approve extension date). 4.4.10 Late Bids are not accepted, unless approved by the SPU head. 4.5 Single Sourcing/ Direct Award Bid Exercise 4.5.1 The above is defined as when there is only one (1) supplier of goods/services or when TC deems justified to go directly to one (1) particular supplier although goods/servicescanBUSINESS NAME be sourced from various suppliers. 4.5.2 The buyer shall prepare a Tender Plan which in- cludes the justification for single sourcing. 4.5.2.1 The Tender Plan has to be presented and endorsed by the SPU Head. 4.5.2.2 Once SPU Head has endorsed the Tender Plan, the SPU buyer and SBU/SSU representative shall proceed with evaluation . 4.6 Evaluation Stage 4.6.1 All bids are to be handled via two-tier evaluation process. 4.6.2 All submitted bids shall be Technically Evaluated by SPU Buyer and SBU/SSU representative

56 4.6.3 Technical Clarifications shall be issued by the SSU/SBU Representative via the assigned SPU Buyer. 4.6.4 To finalize the technical evaluation process, SSU/SBU representative shall provide a technical bid evaluation(TBE) report or Technical Bid Tabulation (TBT) report. 4.6.5 TBE / TBT shall define the Technical Evaluation crite-ria/ acceptance/ rejection on technical bids proposals sub-mitted by Bidders and to clearly notify SPU Buyer the Bidder(s)who are technically acceptable. 4.6.6 In the event of any of the following, the assignedSPU buyer shall prepare a technical evaluation reportpresentation and present the TBE / TBT to project SPU Headfor an approval / mandate to conduct the Commercial Eval-uation together with the Technical Evaluation of Bids of thosetransactions/packages only if; 4.6.6.1 packages/transaction is under the criticali- ty rating of 'A' or 'B'. 4.6.6.2 packages less than PHP 5,000,000.00 esti- mated purchase/budget value 4.6.6.3 only one (1) Technically Acceptable bidder is reflected in the TBE/TBT report. 4.6.7 For packages under the criticality rating of 'C' or 'D',SPU buyer shall evaluate the Commercial Bid(s) of ONLY thetechnically acceptable bidder(s) upon receipt of the TBE/TBTreport approved by SPU Head. If only one (1) Technically Ac-ceptable bidder is reflected in the TBE/TBT report, the buyershall follow the guideline as set forth above in 4.6.6. 4.6.8 Buyer shall issue Commercial Clarifications to thebidder(s) for clarification and compliances to the Preset Pro-curement Standard Terms and Conditions. 4.6.9 Upon finalizing the commercial evaluation process,the SPU Buyer shall prepare a Commercial Bid Tabulation(CBT) and reviewed by SPU Head and SSU/SBU Head as spec-ified in the Overall Contracting Strategy or Tender Plan. 4.6.10 The CBT shall state the selected vendor to be pro-posed for the Award of Purchase Order for the package/transaction, and shall clearly define the price comparisonsmade between the Bidders.

574.7 Award Recommendation 4.7.1 Upon completion of Technical and CommercialEvaluations, the SPU Buyer shall prepare a Techno­ Commer­cial Evaluation and Award Recommendation report com-plete with TBE and CBT. 4.7.2 The Award Recommendation shall clearly notify /state the selected vendor based on technical acceptability,best price and delivery period offered and compliance toterms and conditions. 4.7.3 The SPU Buyer shall present the Award Recommen-dation to SPU Head and SSU/SBU Head for approval. 4.7.4 SPU Head and SSU/SBU Head approval is sufficientunless they do not comply with the following conditions, inwhich it has to go to the PMC for approval;BUSINESS NAME 4.7.4.1 At least 3 bidders are invited for each package/ Material Requisition 4.7.4.1 There must be more than one (1) techni- cally acceptable bidder 4.7.4.3 If actual proposed amount exceeds the estimated/budgeted amount by more than 10%. 4.7.5 SPU Buyer shall provide a PO based on the AwardRecommendation and must have the supplier/contractoracknowledge the PO personally during the award coordina-tion meeting, a contract will be drafted for any PO greaterthan PHP 1M . This order confirmation shall be considered asthe commencement date of the order.4.8 Purchase Order Stage 4.8.1 Upon approval of the Award Recommendation,the SPU Buyer shall prepare the Purchase Order and includethe Purchase Requisition as received from the SSU/SBU repre-sentative. 4.8.2 The Purchase Order and attached documentationto Vendors shall be in Magsaysay standard PO format.

584.8.3 Purchase Orders to Vendors shall comprise, where appli-cable, : + Purchase Order Acknowledgement/ Acceptance + Detailed Scope of Supply - + Required Milestone Achievement Dates + Delivery Date + Delivery Location (INCOTERMS, Ex-Works) + Particular Condition of Purchase + General Conditions of Purchase + Material Requisition + Performance Bond Specimen/All Risk Insurances 4.8.4 All Purchase Orders to Vendors shall be approvedby the authorized personnel as per Magsaysay Charts of Au-thority. 4.8.5 The SPU Buyer shall ensure that the Vendor(s) havebeen received by the Purchase Order and request them toreturn the signed copy of the Purchase Order Acknowledge-ment of Acceptance within ten (10) calendar days after issu-ance of the Purchase Order or during the award coordina-tion meeting. 4.8.6 The SPU Buyer shall ensure that the Vendor com-plies with the Performance Bond and other insurances re-quirements. SPU Buyer to ensure that the submission of thePerformance Bond and other insurances is within two weeksafter issuance of Purchase Order or Down Payment, if re-quired. 4.8.7 In cases where the Acknowledgement of Ac-ceptance contains comments or reservations the Buyer shall;  Inform the appropriate SSU/SBU representative of any technical comments,  Inform the SPU Head of any commercial com- ments,  Cancel the Purchase Order if an agreement can- not be reached and then proceed in obtaining approval of the second best offer.

59 4.9 Amendments to Purchase Orders 4.9.1 In case of unavoidable revisions of Material Requisi- tions or Services, the consequent changes in delivery time and / or commercial conditions that may be requested by either the Vendor or SSU/SBU representative, amendments to the Purchase Order shall be made. Amendments of Pur- chase Orders shall be executed in the same manner as for the Purchase Order. 4.9.1 PMC approval on the Amendment is solicited when total amendment value exceeds 10% of original con- tract/ Purchase Order value 4.10 Purchase Order Close Out 4.10.1 The purpose of a Purchase Order Closeout is to ensure that all payments are made to the vendor and the final accounting figures tally and thereafter to inform the concerned SSU/SBU Head and SSU/SBU Accounting Group, that no further claims or payments shall be entertained as per the Purchase Order (PO) closeout guidelines. 4.11 Close out Procedure 4.11.1 The SPU buyer shall confirm all amendments of PO correspond with the amount paid or to be paid to vendor.BUSINESS NAME 4.11.2 Buyer shall update the PO as per latest amend- ment and confirms with Credit Controller the amount paid to date. 4.11.3 If the figures tally, then the PO can be officially closed out and stamped as \"CLOSED\" on the procurement plan status - If the figures do not tally, then the Buyer shall investigate the source of difference(s). 4.11.1 Buyer shall resolve the differences and initi- ate final payment to the vendor. Subsequently, the PO can be closed out. 4.11.2 The cover page of the PO shall be stamped \"CLOSED\" and a duplicate copy shall be made. The original and duplicate copy shall be sent to vendor for acknowledgement. The buyer shall expedite the acknowledgement of duplicate for filing.

604.12 Reporting Procurement Plan Status 4.12.1 The Procurement Plan Status Report is issued bySPU Buyer on a monthly basis. This report reflects the status ofthe Material/Service Requisitions from the date of its receiptby SPU until the formal issue of the Purchase Order. The follow-ing information shall be included as a minimum : 4.12.1.1 Item No. 4.12.1.2 Purchase Requisition Number and Revision 4.12.1.3 Equipment/Service Description 4.12.1.4 List of Bidders 4.12.1.5 Invitation to Bid Date 4.12.1.6 Bid Required, Extended and Received Dates 4.12.1.7 TBT Tabulation Issued Date 4.12.1.8 Award Recommendation Date 4.12.1.9 Selected Supplier 4.12.1.10 Purchase Order No 4.12.1.11 Purchase Order Date 4.12.1.12 Contractual Delivery Date 4.12.1.13 Required on Site (ROS) Date 4.12.1.14 Remarks 4.12.1.15 Actual Delivery Date 4.12.1.16 Delivery Location4.13 MATERIAL RECEIPT AT SITE 4.13.1 Materials will be received by the SSU/SBU repre-sentative or Warehouse Coordinator at the Construction Siteor warehouse depending on the agreed delivery locationand ensure minimize handling works and cost for the itemsdelivered. Delivery Receipt should be signed and dated byeither the SSU/SBU representative or Warehouse Coordinatorand shall be recorded in the system. 4.13.2 Upon receiving materials, the SSU/SBU representa-tive or Warehouse Coordinator shall check if the material hasno damage and is in accordance with the PO and DeliveryReceipt. In the event that there is damage, shortage or a non-conformance, the SSU/SBU representative or Warehouse Co-ordinator shall raise a Discrepancy Report (DR). This DR shallbe sent to the SPU Buyer. The SSU/SBU representative or Ware-house Coordinator shall maintain a log for all DR raised, recti-fied and resolved.

61 4.13.3 The SPU Buyer shall ensure all DR's are resolved in a timely manner with the Supplier. All follow-up and expediting activities shall be monitored by the SPU Buyer 4.13.4 Upon the DR being cleared/resolved, an Ac- ceptance Report shall be raised by the Material Coordinator and copied to the relevant parties 4.13.5 At the end of the month, the SPU Buyer shall pro- vide a log for all Material Received, DR's raised and Ac- ceptance Reports raised, to the SPU Head and SSU/SBU Head. 4.13.6 In the event a DR cannot be cleared, the SPU Buy- er shall arrange a meeting with the Supplier and investigate ways and options to resolve the discrepancy. 4.13.7 If the SSU/SBU representative or Warehouse Coor- dinator has difficulties in identifying materials, he shall consult SPU Buyer for immediate advice. 4.13.8 Under no circumstance, the SSU/SBU representa- tive or Warehouse Coordinator delays acceptance of the items and accept the delivered without valid reason. All dis- crepancies shall be reported on a timely manner to the SPUBuyer.BUSINESS NAME 4.13.9 The SSU/SBU representative or Warehouse Coordi- nator shall endorse and stamp the Supplier's Delivery Order {DO) upon verification with PO, physical items and correct receipt of materials.

62AMI and MAGSAYSAYGROUP OF COMPANIES SUPPLIER/CONTRACTOR REGISTRATION PROCEDUREOWNER: STRATEGIC PROCUREMENT UNITDATE OF EFFECTIVITY: JUNE 1, 2015PREPARED BY: _____________________ ROMMEL S. CABALLERO PROCUREMENT OFFICERREVIEWED BY: CONTROLLED ____________________ COPY NO: EDGARDO G. APITANA ___________ CHIEF PROCUREMENT OFFICERAPPROVED BY: _____________________ DORIS M. HO PRESIDENT / CEO

63 RECORD OF AMENDMENTDate Change / Rev. Prepared Approved Revision / No. by By New

64 TABLE OF CONTENTS 65 651 OBJECTIVE2 SCOPE 653 REFERENCES 65 674 DEFINITIONS 675 PROCESS 68 69 5.1 Normal Supplier/Contractor Registration 70 Registration Waiver (Non Trade Suppliers/ 70 70 5.2 70 Contractors) 70 70 5.3 One Time Vendor Registration 716 PROCEDURE 71 73 6.1 Completion of Application Form 73 6.2 Registration / Renewal Fees 73 6.3 Payment Instructions 74 6.4 Documents Submission 6.5 Evaluation Process 74 6.6 Registration Status 6.7 Record / Database Update 75 6.8 Changes of Information 76 6.9 Renewal of Registration 6.10 Rejection / Termination of Registration 77 6.11 Appeal on Rejected Application 77 77 Registration Waiver for Certain Supplier/ 6.12 Contractor Category Registration for Non Trade Supplier/ 6.13 contractors 6.14 Registration for One Time Vendor Signing of Integrity Pact and Disclosure 6.15 Statement 6.16 Unregistered Supplier/contractors7 APPENDICES

651 OBJECTIVE This procedure is developed to outline the supplier/contractor registration process and to identify appropriate sup-plier/contractor with sufficient track record and capability.2 SCOPE This procedure shall be applied across AMI AND MAG-SAYSAY GROUP OF COMPANIES on matters related to supplier/contractor registration and management for both local andinternational company.3 REFERENCES 3.1 AMI and Magsaysay Group of CompaniesChart of Authority (COA) 3.2 Procurement Procedure4 DEFINITIONS 4.1 AMI Group Defined as Magsaysay and all legal entities un der the umbrella of Magsaysay Group of Companies 4.2 Applicant Apply to all suppliers/contractors who wish to be a potential supplier/contractor and be eligible to conduct business with AMI AND MAGSAYSAY GROUP OF COMPANIES, who submit the application to Suppli- er/Contractor Registration Website 4.3 Buyer Refer to any responsible personnel in SPU or oth er units that carries out tender activity, do commercial evaluation and negotiation prior to issuance of Pur chase Order (PO) to supplier / contractor 4.4 Dun & Bradstreet (D&B) Refers to the provider and verifier of the docu

66 permanently by D&B to verified business entity underD&B that serve as business entity global reference numberand will be kept in D&B’s global database.4.6 Pre-Qualification Pre-screening activity conducted to ensurethat only qualified and eligible companies’ applications are processed for registration.4.7 Registration Fee Charges made to D&B by the supplier/contractor who would like to register with AMI andMagsaysay Group of Companies. The fee covers theverification of documents submitted, information andbackground check of the supplier/contractor andusage of the online website facilities. 4.8 Supplier/Contractor Registration Website(SCRW) Refers to the website portal which the applicant use for online registration application and user’s verification and report generation on supplier/contractor information.

675 PROCESS5.1 PROCESS FLOW- Normal Supplier/Contractor RegistrationResponsibility Activity Interface / OutcomeApplicant  Supplier/D&B Staff ContractorD&B Staff ApplicationApproving FormAuthoritiesD&B Staff  D&B Registra-D&B Staff tion FeeSPU Staff  MAGSAYSAY- D&B Registra- tion Portal (SCRW)  Supporting Documents  Relevant Documents  Additional Info / Details Required  Relevant Documents  Relevant Documents  Approval Letter & Registration Number  E-mail / Fax  Rejection Letter / Noti- fication  Vendor/ Customer Data Mainte- nance Form  SAP  ShipServ  Database / Portal

68 5.2 PROCESS FLOW - Registration Waiver (Non TradeSuppliers/Contractors)Responsibility Activity Interface / OutcomeApplicant  Supplier/ contractor Application Form  Supporting DocumentsSPU Staff  Relevant DocumentsSPU StaffApproving  AdditionalAuthorities Info / DetailsSPU Staff RequiredSPU Staff  RelevantSPU Staff Documents  Relevant Documents  Approval Letter & Registration Number  E-mail / Fax  Rejection Letter / Noti- fication  Vendor/ Customer Data Mainte- nance Form  SAP  ShipServ  Database / Portal

69 5.3 PROCESS FLOW- One Time Vendor Registration Responsibility Activity Interface / OutcomeApplicant  Supplier/ contractor Application Form  Supporting DocumentsBU/SPU  RelevantStaff DocumentsBU/SPU  AdditionalStaff Info / Details RequiredApprovingAuthorities  Relevant DocumentsBU Staff  Relevant Requestor DocumentsBU Staff  Advise onSPU Staff the oneSPU Staff time en- gagement unless un- dergo nor- mal registra- tion  E-mail / Fax  Rejection Letter / Noti- fication  SAP  ShipServ  Database / Portal  Database / Portal  Monitor the OTV usage

706 PROCEDURE Process Responsibility6.1 Completion of Application Form6.1.1 Applicants are endorsed by the requestor or Requestor/are introduced directly to the Strategic Officer to StrategicEndorse to DNB Officer6.1.2 Applicant and Requestor must provide Applicant/complete contact details and provide their Gen- Requestoreral Information Sheet for DNB to assess the ap-propriate charge to process their Accreditation.Vendor must then settle fee.6.2 Registration Fee - Appendix 7.16.2.1 For Local Companies6.2.2 For Local Companies who have beenaccredited by D&B clients6.2.3 For Foreign Companies6.3 Payment Instructions 6.3.1 Pay the registration fee to D&B as required, Applicant through bank deposit. 6.3.2 The processing fee is non-refundable to cover all processing and/or administrative expens- es (whether the application is rejected or success- ful) and must be paid upon submission of the doc- uments. Only those who paid the registration fee shall be processed. 6.3.3 Payment shall be made directly to the ac- count of D&B (payee), see attached Appendix 7.2 for payment details. i. Deposit to Bank Account6.4 Documents Submission 6.4.1 Scan and submit the proof of payment Applicant copy for the application purposes to DNB Liaison thorough email, copying in Strategic Officer 6.4.2 After 24 hours DNB will give a user name D&B / for www.vendorintegrityaccess.com for applicant Applicant to upload application form and other required documents6.5 Evaluation Process6.5.1 Review / check and verify the Registration D&B StaffApplication form and other supporting documentsreceived.

71 6.5.2 Ensure all the following payment details are D&B Staff furnished by applicant for tracking purposes: i. Company Name ii. Company Identification Number iii. Tracking / Reference Number of Payment Mode. 6.5.3 Evaluating and verifying of documents re- D&B Staff ceived based on the approved criteria. Refer to Appendix 7.4 –Evaluation of Re- quired Documents and Appendix 7.5 – Evaluation Criteria. 6.5.4 Require further clarification if necessary from D&B Staff applicant during the evaluation process before submission for approval. 6.5.5 Submit the complete evaluation report to D&B Staff SPU and send to AMI and Magsaysay Group for the approval of the Approving Authority.. 6.5.6 AMI and Magsaysay Group of Companies Approving Approving Authority evaluates and approved or Authority reject the application and send back to SPU. 6.5.7 SPU advised D&B about the status of the ap- SPU Staff plication and request SAP team to set-up the ven- dor in SAP Vendor Master.6.6 Registration Status 6.6.1 Advise applicant the application status, D & B Staff whether approved or rejected, via email or letter. Application which successfully undergoes the eval- uation process shall be notified as accredited Sup- plier/contractor in AMI and Magsaysay Group of Companies. 6.6.2 Registration tenure shall be limited to two years, commencing from the month of registration approval. Supplier/contractor shall renew the reg- istration after their respective expiry of the validity period. 6.6.2.1 The following industries are subjected to a one year renewal : trucking/hauling, manpower agencies, construction companies, clinics and security agencies

726.7 Record / Database Update 6.7.1 D&B should send regularly to SPU a copy of D & B Staff their monitoring, for companies undergoing ac- creditation for SPU’s uploading into KHub 6.7.2 SPU will monitor this database and ensure SPU Staff system back up is in place in KHub, Strategic Offic- ers Computer and a third party application. 6.7.3 Identify supplier/contractor with sufficient SPU Staff track record and capability based on below classi- fication: Class Type RemarkClass A Value Driven *A mutual commitment of allClass B Partnering the functions of both com-Class C Basic partnering panies to create significant advantages for the other Class D Cost Driven parties *Open sharing of knowledge in best in class cost models and best practices *Closer collaboration to- wards new prospects and opportunities *Mutual support in leverag- ing existing capabilities *Collaboration in product development *Supply chain cooperation *Joint effort to reduce (transactional) costs in prod- uct-service delivery within strict boundaries *Coordination of operations *Open sharing of infor- mation to support effective and efficient operations (costs, inventory, quality etc.) *Price negotiations *Aimed at achieving com- petitive pricing *No incentives from the sup- plier to contribute to value or operational excellence

73 6.7.4 Classification movement shall be based on SPU Staff the assessment rating and yearly evaluation of supplier. 6.7.5 Re-classification shall be carried out once a year based on the re-classification criteria e.g.6.8 Changes of Information 6.8.1 Supplier /contractor will write a formal letter Applicant on their respective letter head to make any changes to their company details. They will submit it to Strategic Officer for updating within system 6.8.3 SPU staff obtain approval from SPU Head for SPU Staff any changes on the company details before up- dating the supplier/contractor details in SAP.6.9 Renewal of Registration 6.9.1 Advise supplier/contractor three (3) months D&B Staff before registration expiry date to submit the re- newal application form. 6.9.2 Renewal will be every two years but for cer- tain categories, such as manpower supply/ agency, security agency, construction companies, truckers and haulers and other categories which requires yearly update on their business docu- ments, the renewal will be yearly6.10 Rejection / Termination of Registration 6.10.1 Any application and/or registration shall be rejected / suspended / terminated without any notice / assigning approved by Manager, due to typical reasons as follow, but not limited to: Application Rejection: i. Incomplete information submitted. ii. False information provided (after verification). iii. Poor financial performance. iv. Bidding for a project with an amount more than it’s paid up capital. v. Supplier is already blacklisted by AMI AND MAG- SAYSAY GROUP OF COMPANIES. vi. Have open legal cases that may affect their capability to perform their obligations

74 Registration suspension / termination: i. Supplier fails to perform and/or honor contracts awarded by AMI AND MAGSAYSAY GROUP OF COMPANIES / is in breach of any contract cov- enants not due to force majeure. ii. Supplier withdraws a bid / refuses to accept an award (after winning on the bidding). iii. Supplier assigns / sub-contracts the awarded contract to another company without prior written approval of AMI AND MAGSAYSAY GROUP OF COMPANIES. iv. Supplier is/becomes involved in any illegal or criminal offenses. v. Supplier is declared insolvent (for companies) or bankrupt (for sole-proprietor & partnership). vi. Supplier initiates legal proceedings against AMI AND MAGSAYSAY GROUP OF COMPANIES. vii. Supplier is found to collude with other suppliers in any procurement exercise. viii.Supplier submits false/fraudulent information or documents during application or bidding pro- cess. ix. Persistent non-compliance with safety and envi- ronment regulations. x. Non-compliance to AMI AND MAGSAYSAY GROUP OF COMPANIES’s Code of Business Conduct. xi. Supplier fails the supplier evaluation 3 consecu- tive times.6.11 Appeal on Rejected Application 6.11.1 Upon notice of missing documents, lack of Applicant performance checks or other information, a suppli- er will be given one (1) month to furnish the missing requirements to D&B for reassessment 6.11.2 If a supplier fails to comply with that one (1) month period, they will be automatically rejected 6.11.2 After that one (1) month period, Prepare Applicant and provide formal letter with strong justifications and submit it to SPU for further deliberation.

756.12 Registration Waiver for Certain Supplier/Contractors Category6.12.1 Waiver shall be allowable under the follow-ing categories:i. Government and Non-Government Organiza-tion bodies.ii. Established companies which manufacturesthe product / provides the services (e.g.OEMs, engine makers, sole service provider).iii. Companies that provide one off supply ofproducts / services.iv. AMI AND MAGSAYSAY GROUP OF COMPANIESSubsidiaries / Affiliates/Joint Ventures.v. Internationally recognized certified Surveyorand/or Classification Societies.vi. Utilities Companiesvii. Appointed suppliers/contractors by client.viii. Shipping Companies6.12.2 Requestor will ensure that all non- SPU Staffaccredited companies are reputable and theirrespective SBU head is responsible for the risks in-volved for the said transaction6.12.3 The requestor shall seek respective BU SPU Staff /Head approval for the request of the waiver (using Approvingthe supplier/contractor registration waiver form), Authorityand also obtain approval from the Approving Au-thorities. No transaction shall be carried out withthe intended supplier/contractor prior to obtainingthe approval6.12.4 Submit the request to SPU with proper justi- Applicantfication and supporting documents.6.12.5 The approval for waiver shall be for a single BU Staff/award transaction only. Forward the application Applicantfor registration to SPU Registration if the supplier/contractor is required for multiple transactions af-terwards.

766.13 Registration of Non Trade Supplier/contractors Non trade supplier/contractors shall defined as:i. Companies that provide hospitalities services(e.g. Hotels, Restaurant, Supermarkets & Cater-ing Services).iii. Companies that provide services for subscrip- tions to publications, exhibitions and advertise- ments.Individual that provides services/private professionals to the company (e.g. lawyers).iv. Consultancy services/agentv. Financial Institutionsvi. Educational Institutionsvii. Medical Institutions (Not including “pre- employment and repatriated clinics)viii. Clubs & Associations6.13.2 Raise “Non Trade Supplier/Contractors”Registration Form and obtain necessary endorse-ment from the respective SBU General Manager,and approval from Approving Authorities.6.13.3 Requestor will ensure that all non-accredited companies are reputable and theirrespective SBU head is responsible for the risks in-volved for the said transaction6.13.4 No fees shall be levied for non-trade sup-plier/contractor’s registration.6.13.5 Advise Ship serve/SAP team to update theirrespective system6.14 One Time Vendor Registration (One Time Transac- tion) 6.14.1 One Time Vendor Classification 6.14.1.1 Applicants have inadequacies / incomplete documentation requirements or have partially satisfied the criteria in selection and willing to correct or suffice the requirements. 6.14.1.2 If their product or service is immediately needed by the operations. 6.14.1.3 Applicant will transact only once with the company 6.14.2 Raise “One Time Supplier/Contractors” BU Staff Registration form and obtain necessary endorse- ment from the respective SBU General Manager, and approval from Approving Authorities.

776.14.3 Act and take necessary actions to ensure BU Staffthat the non-trade supplier/contractors are repu-table and financially sound to mitigate risks in-volved in the transaction.6.14.4 No fees shall be levied for non-trade sup-plier/contractor’s and one time vendor registra-6.14.5 Advise Shipserv/SAP team to update their SPU Staffrespective system6.14.6 Update the “One Time Vendor” list. SPU Staff6.15 Signing of the Integrity Pact and Disclosure State- ment 6.15.1 All registration applicants should file an Applicant integrity pact, data privacy waiver and disclosure statement upon application for registration. Failure to submit this documents will result to rejection of application.6.16 Non registered Supplier / Contractors6.16.1 Advise supplier/contractor to be accredited Buyerwith AMI AND MAGSAYSAY GROUP OF COMPA-NIES Supplier/Contractor registration if supplier/contractors are called for bidding, before anaward can be made.6.16.2 Non-compliance to the above requirementshall be deemed as a breach of the Company’s

787 APPENDICES 7.1 Registration Fee 7.2 D&B payment details 7.3 General Requirement for Supplier/contractor Ap-plication Form 7.4 Evaluation of Required Documents 7.4.1 Supplier/Contractor Pre Qualification Form 7.4.2 Small & Micro Enterprise 7.4.3 Medium & Large Enterprise 7.4.4 Educational Institutions 7.4.5 Construction Companies 7.4.6 Manpower Agencies 7.4.7 Security Agencies 7.4.8 Food Providers 7.4.9 Medical Institutions/Providers 7.4.10 Truck and Haulers providers 7.4.11 One Time Vendor 7.4.12 Waived and Non-Trade Vendor 7.4.13 Foreign Vendor 7.5 Evaluation Criteria 7.6 Accountability/Approval Authority Matrix 7.6.1 For Normal Supplier/Contractor Criteria 7.6.2 Supplier/contractor Waive / Non Trade Ven- dor Form 7.6.3 For One Time / Non Trade Vendor

79Appendix 7.1: Registration Fee7.1.1 Local Companies Supplier Capitalization (PHP) Registration FeeCategory (PHP- VAT Ex.)Micro 0 to 3 Million 1,500Small 3 Million to 15 Million 1,500Medium 15 Million to 100 Million 5,000Large 100 Million and above 5,000 7.1.2 For Local Companies that have been Accreditedby Other D & B Clients Supplier Capitalization (PHP) Registration Fee Category (PHP- VAT Ex.)Micro 0 to 3 Million 3 Million to 15 Million 1000Small 15 Million to 100 Million 100 Million and above 1000Medium 2,500Large 2,5007.1.3 Foreign CompaniesSupplier Country of Origin Registration FeeCategory (USD- VAT Inc.)A USA, UK, Canada, Italy, 180 Portugal & Austria 180B Australia, New Zealand, 250 Belgium, Chile, Finland, France, Germany, Ire- land, Netherlands, Nor- way, Peru, Spain, Swe- den & SingaporeC Argentina, Denmark, HK, Israel, Mexico & Switzerland

80D Brazil, Venezuela, Eastern Eu- 300 rope (Russia, Poland, Hungary, Czech, etc.), Indonesia, MY, TH, India, Middle East, Mediter- ranean Countries and African CountriesE China, Japan, Korea, Taiwan, 320 VietnamAppendix 7.1: D & B Payment Details 7.2.1 Payment Channels  Online Banking  Over-the-counter (OTC) Banking 7.2.1.1 Online Banking  Allows anybody with internet banking access to a local bank account, to make a payment that is debited against that ac- count in real-time.  Currently supported banks included:  BDO Internet Banking (Fund Transfer)  BDO Internet Banking (Bills Payment)  BPI Express Online / Mobile (Fund Transfer)  BPI Express Online (Bills Payment)  China bank Online  Metro Bank Direct  RCBC Access One  Union Bank EON  Union Bank Internet Banking  UCPB Connect

81Appendix 7.3: General Requirement for Supplier/contractor Ap-plicationNo. Requirement1. All local companies must be registered with the Securi- ties & Exchange Commission (SEC), and / or must have updated Business Permit or any related professional bodies only applicable for professionals)2. Company must be registered to BIR and for corporation must have 3 years of sound Audited Financial Reports.**For new companies, subject to further pre-qualification by the Approving Authorities3. Company must provide a source of supply for each category of product supplied. Appointment letter as an exclusive agent or authorized distributor must be obtained directly from the manufacturer.4. Company must have the technical expertise with re-spect to management staff, skilled em-ployees, system & system expertise and equipment foreach services service category applied.5. Company should preferably be registered with statutory/ professional bodies or government departments related to the relevant cat- egory applied.6. Documents submitted must be certified by: i. Company Secretary / Director ii. Other equivalent form of certification from rele- vant authorities / bodies where applicable.7. Other prevailing conditions as set by Magsaysay Group of Companies Management

82Appendix 7.4: Evaluation Documents Description No. Field Name1. Complete Suppli- Refer to relevant online Pre- er/contractor Pre- Qualification Form Qualification Form (*)2. Requirements for  Supplier’s Registration Form Micro & Small SEC Certificate, Articles of Enterprise  Incorporation and By Laws/ Articles of Partnership/Articles of Cooperative and latest GIS  SEC Articles of Partnership (for Partnership  DTI Registration  Latest Business/Mayor’s Per- mit  Latest Utility Bill Receipt  BIR Certificate (BIR Form 2303 or 1556)  Photo copy of Original Re- ceipt & Sales/Service Invoice  Owner’s Identification ( valid IDs i.e. driver’s license, pass- port or NBI clearance for sin- gle proprietorship)

833. Requirements for  Suppliers Registration Form Medium & Large Enterprise (Local)  Valid Mayors/Business Permit   BIR Certificate of Registration (Form 2303)   SEC Certificate, Articles of Incorporation and By Laws/  Articles of Partnership/Articles of Cooperative and latest GIS  SEC Articles of Partnership (for Partnership) DTI Registration and all its at- tachments/annexes (for Sole Proprietor) Valid Identification of the owner for single proprietor (driver’s license, passport etc.) Latest 2 years Audited/ Comparative Financial State- ments duly received by BIR and SEC for Corporations; BIR stamped received for propri- etorship

84  Annual BIR Income Tax Re-  turn, latest 3 years, stamped received by BIR   Proof of business address or lease of agreement and lat-  est utility bill (i.e. telephone, electric bill)   Sketch and pictures of office and/or yard4. Additional  Requirements Photocopy of Original Re- for ceipt and Sales/Service In- voice being issued to clients Educational Insti- Photocopy of Certifications/ tutions  Licenses from certifying agen- cy (i.e. ISO, CLASS Societies,  etc.)5. Additional  Photocopy of Certificate of Requirements Exclusive Distributorship for Appointment Letter as an Construction exclusive agent or authorized distributor. Companies ISO Certification ( if applica-  ble)  Certificate/credentials of in- structors Government licenses to oper- ate ( DepEd, TESDA and oth- ers) List of Current & Past Projects including name of projects, company, address & contact details PCAB License Latest SSS remittance receipt (quarterly)

85  safety officer  First aid Training Certificate of designated first aider issued  by Philippine Red Cross  Agency’s security enhance- ment programs/trainings on8. Additional  top of R.A. 5487 requirements Requirements for Proof of “Mandatory Insur- Medical Providers  ance Coverage” of all post- ed security personnel (clinics, partner- ship or sole propri-  Copies of valid Fire Arms Li- cense cards etor)  DOH registration  Valid Sanitary Permit  License of Medical Director  List of Medical Practitioners  with valid licenses9. Food/Edible Items  Registration from various Providers agency/certifying body Latest SSS remittance receipt (quarterly) Latest PHILHEALTH remittance receipt (quarterly) Latest Home Development Mutual Fund remittance re- ceipt (quarterly) Government , Sanitary and Food governing agencies permits/licenses based on provision category ( DFA, NFA License, Meat Inspection Cer- tificate (Certified fit for hu- man consumption) , Meat Source Accreditation Certifi- cate, Certificate of attend- ance to a training course in

8610. Additional  hygienic handling of meat by Requirements for National Meat and Inspection Service Truckers/Haulers Copy of existing Inland Ma-  rine Insurance Policy (with limit of liability up to Php 2M  per incident/per truck and per annual aggregate   Certificate of registration of truck in fleet including ORs11. Requirements for  and CRs One Time Vendor   List of authorized drivers’ li- cense and NBI clearance  LTFRB Franchise  Photocopy of Sales/Service12. Requirements for  Invoice & Official Receipt Waived and Non  One Time Vendor Form Trade Vendor  BIR Form 2303 (Clubs & Associa-   Photocopy of Sales/Service tions / Hotels & Invoice & Official Receipt Restaurants/ Valid Business Mayors/ Business Permit Banks / Private Relevant documents/ Professionals/ approval from head Consultancy Supplier/Contractor Registra- tion Form Services or BIR Form 2303 Agents / Publica- Photocopy of Sales/Service tions and other Invoice & Official Receipt One Time Vendor Form Relevant documents (letter of appointment, approval from head) similar businesses)

8713. Foreign Compa-  Supplier/Contractor Registra- nies tion Form  Documents which are equiv- alent to the local documents required for processing.Appendix 7.5 Evaluation CriteriaCriteria \ Rating 1 (Good) 2 3 (Poor) (Acceptable)1.0 Financial Risk Very posi- Stable his- Very weakIndicators tive and toric and historic(Audited Fi- increasing projected and pro-nancial State- profitability profitability. jectedment) (historic profitabil- and pro- ity. jected), top perfor- mance. Overall Finan- Overall Finan- Overall Fi- cial Indicator cial Indicators nancial Indi- result result cator result Score: 1A to Score: A to HH Score: 5A N,O,NB and NQ2.0 Historical cash Very posi- Stable his- Very weak historicflow Ac- tive and toric cash cash flow.count / Bank increasing flow.Statement cash flow(Certified) (historic and pro- jected), top perfor- mance.3.0 Banking Facili- Satisfactori- Adequate No bank- ing facili-ties ly loan/ loan/ ties overdraft overdraft facility and facility and Working Working Capital for Capital for business business transaction transaction

884.0 Risk Indi- Minimal Risk Low Risk to Significant cators Greater Level of Risk than Aver- age Risk5.0 Company More than Certain Vendor do Track 50% of the projects not have Record project in- only in- experience volved in the volved in in any of 1.0 Track rec- category or category AMI and ord in Ma- business of or business Magsaysay rine or AMI AMI and of AMI and Group of and Mag- Magsaysay Magsaysay Companies saysay Group of Group of businesses Group of Companies Compa- Compa- businesses nies busi- nies busi- nesses nesses 5 years or more 2 to 5 Vendor do 2.0 Experi- years not have ence in Able to pro- any experi- Product / vide ap- ences in Services to pointment supplying be regis- letter for products or tered every prod- providing ucts to be services to6.0 Company registered be regis-Profile tered or less1.0 Appointment than twoletter from princi- years.pal(s)/ ** Newmanufacturer (s) Company** applicable for sup- Able to No ap-plier only provide pointment appoint- letter / ment letter manufac- for certain turer at all products only to be registered

89Testimonials & Able to pro- Able to pro- No perfor-references vide good vide few mancefrom client perfor- perfor- letter mance let- mance let-7.0 Complete- ter for every ter 69% andness on completed below ofSubmission of Re- job. 70% of the requiredquired Documents required docu- Comply to documents ments sub- all required submitted mitted documents 7.6.1 Accountability / Approval Authority Matrix forNormal / Special Category Supplier/Contractor RegistrationCATEGORY Verifier Evalua- Recom- Approval tion mendationCommon D&B Staff SPU Staff CPO CFO FSL( Local & D&B Staff SPU StaffInternation- Masaya CFO FSLal ) Head/CPOConstruc-tion Com-paniesSecurity D&B Staff SPU Staff HSES CFO FSLAgency Head / CPO CFO FSLManpower D&B Staff SPU Staff CFO FSLAgency D&B Staff SPU Staff HR HEAD/ CFO FSL CPOTruckers/Haulers HSES HEAD /Food/ D&B Staff BU/SPU CPOEdible Staff RESPEC-Items TIVE BU HEAD ( MIHCA / SCI/MIS ) / CPO

90 7.6.2 Accountability / Approval Authority Matrix forWaive/Non Trade and Special Category Supplier/ContractorRegistration CATEGORY Verifica- Recom- Approval tion / mendation CPOPublic Utilities,Government Evalua- SPU Staffand NGOs tion( Local & Inter-national ) RequestorEducational Requestor SPU Staff HR HEAD/ /CPOInstitutionPrivate Profes- Requestor SPU Staff HR HEAD / CPOsionalsConsultancy Requestor SPU Staff HR HEAD/ CPOServices /AgentsFinancial Insti- Requestor SPU Staff FINANCE HEAD ortutions TREASURY HEAD / CPOMedical Pro- Requestor SPU Staff HR HEAD/HSESviders / Requestor SPU Staff HEAD/ CPOInstitutions MARKETING/Publishing CORPORATEHouse and Ad HEAD/CPOAgenciesClubs & Associ- Requestor SPU Staff HR HEAD/ CPOationsHotels and Res- Requestor SPU Staff HR HEAD/ CPOtaurants

91 7.6.3 Accountability / Approval Authority Matrix for OneTime Supplier/Contractor Registration.CATEGORY Verifier Evalua- Recommen- Approval tion dationCommon BU Staff SPU Staff BU/SPU Staff RESPEC-( Local & TIVE BU/Internation- CPOal )Construc- BU Staff SPU Staff BU/SPU Staff RESPEC-tion Com- TIVE BU/panies CPOSecurity BU Staff SPU Staff BU/SPU Staff RESPEC-Agency SPU Staff BU/SPU Staff TIVE BU/ SPU Staff BU/SPU Staff CPOManpower BU Staff SPU Staff BU/SPU Staff RESPEC-Agency TIVE BU/ CPOTruckers/ BU StaffHaulers BU Staff RESPEC- TIVE BU/Food/ CPOEdible RESPEC-Items TIVE BU/ CPO

92 AMI and MAGSAYSAY GROUP OF COMPANIESSUPPLIER/CONTRACTOR ASSESSMENT AND CONSEQUENCE MANAGEMENT PROCE- DUREOWNER: STRATEGIC PROCUREMENT UNITDATE OF EFFECTIVITY: November 01, 2015 THIS DOCUMENT PRESCRIBES COMPANY PRACTICE AND IS FOR INTERNAL USE ONLY. IT SHALL NOT BE REPRODUCED IN WHOLE OR IN PARTS OR RELEASED TO A THIRD PARTYWITHOUT PRIOR WRITTEN CONSENT FROM THE HEAD OF THE RESPONSIBLE DEPARTMENT.PREPARED BY: _______________________ Cieril Victorio Susmeña Strategic BuyerREVIEWED BY: ________________________ CONTROLLED Edgardo Guevara Apitana COPY NO: Chief Procurement Officer SPU2015-0005APPROVED BY: _______________________ Doris M. Ho President /CEO

93 RECORD OF AMENDMENTDate Change / Rev. Prepared Approved Revision / No. by By New

94 TABLE OF CONTENTS1 OBJECTIVE 952 SCOPE 953 REFERENCES 964 DEFINITION 965 PROCESS 996 PROCEDURE 1006.1 Compilation & Issuance of Data 1006.2 Perform Supplier/contractor Assessment 1006.3 CMC Meeting Arrangement 1016.4 Approval Committee 1016.5 CMC Meeting Success Factor 1036.6 Update Supplier/contractor Assessment Da- 103tabase7 APPENDICES 104

951 OBJECTIVE This procedure is developed to outline the systematicevaluation, monitoring and recording of supplier/contractors’performance and consequence management on the non-performance supplier/contractors.2 SCOPE This procedure shall cover the following:2.1 The scope of purchases (Purchase Order) val- ue for each business/service unit: Type of Transactions Purchase Value No value requiredUnder Contract / PriceAgreementOpen Source Php 500,000 ( accumulated purchase for 6 months )Vessel (MSI) Contractors/ Php 250,000 ( accumulated purchaseSuppliers for every quarter )Special Categories No Value Required(Manpower, Security andClinics for pre-employment) BUSINESS NAME Note: Any personnel from the Magsaysay Group of Com-panies may conduct an ad hoc assessment of any supplier/contractor that, in his/her opinion, provided a substandard qualityor poor service or support. Frequency of Supplier/Contractor Assessment:Type of Transactions Frequency Business/ Service Unit to AssessedContract / Price Twice a year ( 1 SPU teamAgreement regular perfor- mance evaluation and 1 audit activi- ty )Open Source Once every six (6) 3 highest months spend BU/SU

96Vessel (MSI) Contrac- Once every quarter MSI Superin-tors/Suppliers Once a year tendentsSpecial Categories SPU team with(Manpower, Security BU/SSUand Clinics for pre-employment) 2.2 Any delivering materials and providing services i.e. where there is a clear non-performance of any con- tractual obligation to the supplier or subcontractors and/or refusal or failure to deliver the quality of the product / service undertaken to deliver non- performance supplier/contractor in 2.2.1 These vendors will be issued a formal letter warning them of their performance lapses before being sub- jected to negative assessment 2.3 Any non-performance supplier/contractor in deliver- ing materials and providing services i.e. where there is a clear non-performance of any contractual obli- gation to the supplier or subcontractors and/or re- fusal or failure to deliver the quality of the product / service undertaken to deliver3 REFERENCES 3.1 SPU Procurement Procedure 3.2 SPU Supplier/Contractor Registration Procedure4 DEFINITIONS 4.1 Approver Approver in this procedure is applied to respec- tive unit’s level management making or involved in the purchase, e.g. BU/SU Head/ Head of Department / Manager /Supervisor/team Leader 4.2 Assessor Personnel that engaged the supplier/contractor more frequently are responsible to conduct the Suppli er/Contractor Assessment and prepare CMC paper, if required, based on the assessment rating.

974.3 Business (BU) / Service Unit (SU) Business/Service Unit to perform the assessmentbased on specified purchased value4.4 Chairman Chair the CMC meetings, encourage all mem-bers to be fair in their evaluation of the assessment pre-sented, allow all members to be heard, ensure thesmooth running of the meetings, adjourn the meetings,have the authority to call off the meetings due to insuf-ficient facts and have the final say in recommendationfor actions to be taken on non-performing suppliers andcontractors. For this purpose, the Chairman of the CMC shallbe the respective Chief Finance Officers of the groupconcerned (HRG, TLG, Affiliates).4.5 SCP-CMC Supplier/Contractor Performance and Conse-quence Management Committee, a committee to de-cide on CMP presented. The appointed CMC mem-bers, as enumerated in 6.4.1 thereof, shall attend meet-ings regularly and give opinion or advice on the casesof non-performing suppliers and contractors based onthe facts presented to ensure a fair and balanced rec-ommendation is put forward for management’s deci-sion.4.6 CMP Consequence Management Paper preparedby assessor for the blacklisted / suspended companyrecommended.4.7 CMC Secretariat Responsible Person In Charge from VPD to pre-pare / provide notice for meetings, ensure presentersand papers are ready, arrange for venue, take minutesof meetings and later distribute to all committee mem-bers of CMC, make recommendations for changes inthe CMC members as and when required, review theTerms of Reference periodically.4.8 SPUStrategic Procurement Unit.

984.9 Supplier/contractor This applies to any supplier and subcontractorthat shall be assessed by VPD.4.10 VPD Vendor Performance and Development of Stra-tegic Procurement Unit (SPU) unit, manages the suppli-er/contractor assessment.

99 5. PROCESS FLOW (should include KPI in # of days)Responsibility Activity Interface Administrator, Start  System (SAP) / VPD Identify & Extract PO/SO Shipserve Data Required for As- Administrator, sessment  PO Transaction VPD Issue the List of supplier/ Data contractor for Assessment  List of BU Based on PO value Assessor Perform Vendor  Assessment Form Assessor Assessment  Assessment Form / Respective Blacklisted / Yes Suspended Rating Score BU/SU Head No  Recommended Assessor Approval Action Assessor No Assessor  Assessment Form CMC Yes Assessor  Assessment Form SPU, VPD Submit Approved SPU, VPD Assessment to VPD  CMP  Relevant Document/s SPU, VPD Prepare & Submit  Approval of BU/SU Approved CMP to VPD Head Present CMP to CMC  CMP No  Relevant Document/s Recommendation  CMC Decision & Agreed Yes Confirmation Obtain Approval  Relevant Document/s from the CMC  Result / Action Execute CMC Decision Approved Update Supplier/ Contractor Assessment  Supplier/ Database & Supplier/ Contractor Classification Contractor Assess- ment Database Publish the Result as Reference  K- HUB with au- End thorize accessi- bility

1006 PROCEDURE Process Responsibility6.1 Compilation & Issuance of Data 6.1.1 Extract PO list from SAP / Shipserve system SPU, VPD based on the supplier/contractor type and value category as per clause 2.1 6.1.2 Review, compile and finalize PO list before SPU, VPD uploading into the Sharepoint Vendor Assessment System 6.1.3 Issue the assessment form to the respective SPU, VPD nominated assessors for each of the respective business and service units through the Sharepoint Vendor Assessment System.6.2 Perform Supplier/contractor Assessment6.2.1 Perform and complete supplier/contractor Assessorassessment based on Supplier/Contractor Assess-ment form criteria.Refer to Appendix 7.1: MAGSAYSAY GROUP OFCOMPANIES ASSESMENT FORM for Materials, andAppendix 7.2: MAGSAYSAY GROUP OF COMPA-NIES ASSESSMENT FORM for Services.6.2.2 Finalize and obtain final score of the as- Assessorsessment. The rating shall be as per table be-low:Score % Rating Description90-100 A Excellence Acceptable75-89 B Good Acceptable65-74 C Fair Conditional20-64 D Poor Acceptable0-19 E Very Poor Unaccepta- ble Unaccepta- ble6.2.3 Submit the completed Supplier / Subcon- Assessortractor assessment form for approval by therespective assessor’s Business/Service Unit Head6.2.4 If Supplier / Subcontractor Assessment Assessorresult is unacceptable and recommended forsuspension / blacklisting, CMP shall endorse to