BSMED-MED-SSF.F#15/Rev.

00/02-18-15

ANNEX D

MEMORANDUM OF AGREEMENT
ON THE
SHARED SERVICE FACILITIES (SSF) PROJECT

KNOW ALL MEN BY THESE PRESENT:

This AGREEMENT is made and entered into by and between:

The DEPARTMENT OF TRADE AND INDUSTRY - ______________________, a government agency

duly organized and existing under the laws of the Republic of the Philippines, with office address at
_________________________________________________________________,
represented by ___________________________________, _____________________________,
hereinafter referred to as “DTI-___”,

-and-

________________________________________, duly organized and existing under the laws of the

Republic of the Philippines, with principal office address at
___________________________________________________________________, represented by
its _______________, ___________________________________________, hereinafter referred to
as the “COOPERATOR”,

-WITNESSETH-

WHEREAS, to address the gaps and bottlenecks in the value chain of priority industry clusters,
provide an integrated package of services including enhanced marketing approaches relevant to the
maturity of the Micro, Small and Medium Enterprise (MSMEs) and the target markets, and develop
priority and market-driven industries, the “SSF Program” was established for the purpose, with DTI
serving as Implementing Agency;

WHEREAS, in the implementation of the said Project, the parties concerned shall be guided by Joint
Circular No. 2014-1 issued by DBM and DTI on October 9, 2014 and Memorandum Order No. 15-58,
S. 2015 issued on January 20, 2015;

WHEREAS, SSF shall refer to a set of machinery, equipment, tools, systems, accessories, and other
auxiliary items that may be required for a duly prescribed purpose, to be managed by a
COOPERATOR for the common use of qualified beneficiaries;

WHEREAS, “BENEFICIARY” shall refer to the actual and potential user of the SSF which shall be
predominantly cooperative, association or group of MSMEs, individual MSME, individual
entrepreneurs, students, trainees, teachers and researchers;

WHEREAS, “COOPERATOR” shall serve as an SSF partner, which maybe a juridical entity, such as but
not limited to non-government organizations (NGOs), people’s organizations, cooperatives,
industry/trade/business associations, local government units (LGUs), state universities/colleges,
technical vocational schools and other similar government academic and training institutions;

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WHEREAS, the SSF Project encourages the graduation of COOPERATORS, especially MSMEs to the
next level where they could tap a better and wider market share and be integrated into the global
supply chain;

WHEREAS, pursuant to the applicable provisions of the existing relevant SSF Circulars/Guidelines,
“DTI-______” has pre-evaluated and identified the “COOPERATOR” herein as qualified to manage a
SSF to be established at ______________________________________________ for
_____________________________ Industry/Sector;

WHEREAS, the “COOPERATOR” herein has expressed its willingness to undertake the management
of the aforementioned SSF;

NOW, THEREFORE, for and in consideration of the foregoing premises and of the mutual covenants
and stipulations hereafter set forth, “DTI-_____” and the “COOPERATOR” hereby agree to enter into
this Memorandum of Agreement (MOA), subject to the following terms and conditions:

I. THAT the SSF Project is briefly described as:

1. Title:
2. Specific Site/Location:
3. Beneficiaries:
(the hereto attached list of beneficiaries shall form an integral part of this MOA)
4. Cost Estimate:

PARTY ITEM COST TOTAL COST

DTI
COOPERATOR

5. Benefits:

II. THAT “DTI-____” shall have the following rights, duties and responsibilities:

1. Initiate procurement of SSF necessary for the setting up of the Project in accordance
with the provisions of the Republic Act 9184, otherwise known as the “Government
Procurement Reform Act”, and its Implementing Rules and Regulations;

2. Inspect the SSF upon delivery by the supplier to ensure that they meet all the
specifications as defined in the DTI Purchase Request Form. This shall be done in the
presence of the representative of the “COOPERATOR”;

3. Turn over the duly inspected SSF to the project site designated by the “COOPERATOR”
and have the same received and acknowledged in writing by the “COOPERATOR”.

4. Grant the “COOPERATOR” the free use of the SSF during the duration of this MOA,
through the execution of a Usufruct Agreement;

5. Secure an insurance for a period of two (2) years from date of delivery of the SSF, to
cover loss or damage caused by fire, theft, earthquake, lightning, floods, and other
Acts of God;

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6. Conduct periodic inspection and monitoring of the condition of the SSF in order to
promptly identify any problem and accordingly come up with the appropriate or
needed remedial measures. This shall be reflected in the Manual of Operations to be
prepared by “DTI-____” and the “COOPERATOR”;

7. Monitor and evaluate the operations of the SSF project, particularly in terms of
production and financial condition thereof. The reports thereon shall be submitted by
“DTI-____” (“Provincial Office”) to DTI-___” for consolidation purposes;

8. Provide, when necessary, additional technical support capacitating the

“COOPERATOR” to sustainably manage and operate the SSF in accordance with the
objectives of the Project;

9. Institute any appropriate actions against the COOPERATOR in case of material breach
of the provisions hereof or misuse or abuse of approved and released funds, the legal
cost therefor shall be borne by the “COOPERATOR”;

III. THAT the rights, duties and responsibilities of the “COOPERATOR” shall be as follows:

1. Pre-qualify and submit the names of the beneficiaries to “DTI-____”;

2. Provide the necessary facilities to house the SSF and other support facilities such as
power, as well as working capital and personnel;

3. Assign or designate a representative to witness the inspection by “DTI-______” of the

SSF delivered by the supplier;

4. Acknowledge in writing the receipt of the SSF delivered by “DTI-____” to its

designated project site;

5. Operate and manage the SSF in accordance with existing SSF Circulars/Guidelines and
the Manual of SSF;

6. Recognize DTI’s ownership of the SSF;

7. Conduct periodic preventive maintenance work to keep the SSF in good working
condition;

8. May opt to take out an insurance within the period of the Usufruct Agreement to
cover loss or damage to the SSF;

9. Take care of the SSF as good father of the family and ensure its protection from loss or
damage;

10. Submit to “DTI-___” the required Periodic reports on SSF production and financial
conditions in accordance with the schedule set forth in the Manual of SSF Operations;

11. Undertake not to lease, mortgage sell, transfer, or dispose of the SSF subject hereof;

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12. Upon the termination of this MOA, return to “DTI-___”, without need of demand, the
SSF, in working condition, taking into consideration possible wear and tear arising
from the normal usage thereof;

13. Shall indemnify DTI for any and all expenses incurred to restore the SSF to its working
condition, in case of deterioration thereof due to abuse, fraud or negligence on the
part of the “COOPERATOR”.

IV. THAT “DTI-____” and the “COOPERATOR” shall jointly prepare and approve a Manual of SSF
Operations, which shall include, among others, the following:

1. Organizational/functional structure of the SSF Project;

2. Procedure of accessing for the services or benefits of the SSF;
3. Business Plan;
4. Communication Plan to promote the use of the SSF;
5. Reportorial Procedures; and
6. Measures to recover expenses incurred for the misuse or abuse of the SSF by the
BENEFICIARY.

V. THAT this Memorandum of Agreement shall be effective for a period of two (2) years from
the date of execution and signing hereof by the parties hereto.

VI. THAT the effectivity of the corresponding Usufruct Agreement shall not go beyond the
duration of this MOA.

VII. THAT the grounds for the termination of this MOA shall be as follows:

A. Pre-Termination:

1. Upon mutual written consent of the PARTIES;

2. Non-performance by either party of its prescribed duties and responsibilities;

3. Non-compliance by the “COOPERATOR” with any of the provisions hereof or default

in the obligations imposed herein.

B. Termination:

1. Expiration of the duration of this MOA;

2. Fortuitous events or “Acts of God”, provided, the same is so grave that the
performance of the duties and responsibilities of the party affected or the
continuation of the SSF is clearly impossible under the circumstances. Provided,
further, that the party affected shall notify the other party in writing within a period
of five (5) days from the occurrence of such event.

VIII. THAT the following MISCELLANEOUS PROVISIONS shall likewise be observed:

1. After the termination of this MOA or at the end of the two (2) years, the
machinery/equipment/tools shall be appraised to determine its depreciated value or
residual value for purposes of transfer, sale or disposal by DTI. A depreciation schedule
for all machinery/equipment/tools shall be provided for and form an integral part of this
MOA as Annex “A”;

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2. After the termination of expiration of this MOA, the DTI may, subject to the existing COA
rules and regulations, transfer the machinery/equipment/tools to the Local Government
Unit (LGU) where said machinery/equipment/tools are located or to any other
government corporation, association, state university or college, technical and
vocational schools or any similar government academic or training institution. The said
transfer is further subject to the condition that the aforementioned transferees shall be
prohibited from selling, mortgaging, or transferring the machinery/equipment/tools to
any third party;

3. The machinery/equipment/tools shall be used by the “COOPERATOR” under a Usufruct

Agreement which shall form an integral part of this MOA as Annex “B”.

IX. THAT any amendments to this MOA shall be in a written form of this nature and signed by
both “DTI-____” and the “COOPERATOR”.

IN WITNESS WHEREOF, the parties have hereunto set their hands this ____ day of ___________
201__ in _________________________, Philippines.

DTI REGIONAL OFFICE________ COOPERATOR

By: By:

_____________________________ _____________________________
(Name/Designation of Representative) (Name/Designation of Representative)

SIGNED IN THE PRESENCE OF:

_____________________________ ______________________________
Witness Witness

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ACKNOWLEDGEMENT

Republic of the Philippines)

)S.S.

BEFORE ME, a Notary Public for and in _________________, this __ day of ____________
20__, personally came and appeared the following:

Name Valid ID Place/Date Issued

_______________________ ______________ ___________________________

_______________________ ______________ ___________________________

Known to me and to me known to be the same personas who executed the foregoing instrument
and acknowledged to me that the same is their free and voluntary act and deed.

WITNESS MY HAND ND SEAL.

Doc. No. ______;

Page No. ______;
Book No. ______;
Series of 2015.

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