MEMORANDUM OF AGREEMENT

ON THE
PHILIPPINE NEWS AUTHORITYS WEBSITE AND NEWS GATHERING SYSTEMS
DEVELOPMENT
KNOW ALL MEN BY THESE PRESENTS:
This MEMORANDUM OF AGREEMENT is made and entered into by and between:
The NEWS AND INFORMATION BUREAU (NIB), an agency under the Office
of the Press Secretary, and which operates the Philippines News Agency, a
government news wire service, herein represented by Director Lucita C.
Sanchez, with principal office at Malacaang Arlegui Guesthouse, Arlegui
Street, San Miguel, Manila.
And
The NATIONAL COMPUTER CENTER (NCC), an agency under the Office of
the President, represented herein by its Director General, Angelo Timoteo M.
Diaz De Rivera, with principal office at C.P. Garcia Avenue, UP Diliman, Quezon
City, hereinafter referred to as NCC.
WITNESSETH:
WHEREAS, the PNA seeks Information Technology services from NCC for the
development of the PNA website, the Website Content Management System and the
News Gathering System that will become the venue of collecting reports and
distribution of news to their subscribers;
WHEREAS, the NCC, being the lead agency for the Information Technology
development in government, is willing to provide the necessary services to PNA;
NOW THEREFORE, for and in consideration of the foregoing premises, the parties
hereto under agree as follows:
SECTION 1. OBJECTIVE
The objective of this Memorandum of Agreement is to develop an interactive news
website with a Content Management and News Gathering System (NGS) that will
facilitate the collection of reports from its reporters and stringers nationwide and
at the same time becomes the means to distribute such news to its client
subscribers 24 x 7. The tasks necessary for the development of the website, the
CMS and the NGS shall hereinafter be referred to as the Project.
SECTION 2. SCOPE OF WORK
The project entails the conduct of the following activities:
2.1
Requirements Gathering and Analysis
This is the activity where gathering of data and information from the user is done.
Information collected will be identified, categorized or classified and then
presented to the PNA for validation and approval.

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2.2 Website Template Design

The design of the website template will be based on the gathered requirements.
Likewise, the following will be part of the website template.

The website will automatically archive news once the end date of
publication is reached or has lapsed.
A search facility with PNAs define search parameter for easy and fast
access of archived news and other information will be included.
Online Registration/Subscription will be the gateway for interested
users to become a subscriber of the Philippine news.
Advertisers Corner, a space in the home page that is allotted to the
partners of NIB to advertise their site at the same time link to their website.
Direct links to various news websites or portals.
Visitors counter for tracking the number of times the website has been
visited.
Feedback link for a direct email to PNA webmaster for comments and
suggestions.

The output template will be presented to the Project Counterpart Team for
comments and approval. Once approved, the development of the content
management system will commence.
2.3 Content Management System Development
The Content Management System which will be the interface between the content
provider/manager and the website. The CMS will provide a means to regularly
update the content of the website.
2.4 Content Population
Creation, delivery and management of worthwhile, timely and accurate content
shall be initially provided by NCC until the PNA users have been fully oriented on
how to populate the websites contents themselves.
2.5 News Gathering System (NGS) Development
This web-based module is the centralized means where the gathering of all up-tothe-minute news items submitted by the reporters from various locations are
reviewed. The news can either be edited or deleted. Posting of the news to the
website will be dynamic, meaning once a news has been edited and approved for
posting, the website is automatically updated.
The NGS is an icon in the PNA website that can only be accessed by authorized
users. Each authorized user, the news reporters, and editors shall be given a
username and a password to gain entry to the system.
Two major modules comprise the NGS - the Reporters, and the Editors. Each
module has its own distinct features.
Reporters Module
This module enables reporters to type or copy, paste and submits report
directly to the system. Submitted original report is kept into a folder for a
certain period of time while a copy is forwarded to the editor for editing and
possible posting to the website. This is done through the input screen of the
Reporters Module.
Editors Module
As all submitted news reports will have to pass the scrutiny of the editor/s, this
module is specifically accessed by the news editor for editing, approving
(meaning to post or to delete) and posting of received news report. The NGS
will automatically alert the PNA news subscribers through email once a news
has been approved and posted in the website.

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The editor does the final category of the news reports submitted.
2.6 Subscribers
This module is intended for the PNAs news subscribers to be able to view and/or
download news releases. It is a feature of the website where the authorized
subscriber has to login in the system with his correct username and password in
order to open, view and/or download news items from the website. The system
will automatically check the entered username and password. When the system
found no match, the subscriber will be allowed to enter the system.
2.7 User Training
To familiarize the users on how to use the website and its modules, NCC shall
provide and conduct a user training for the website administrator/s, editors, and
reporters.
The participants will have hands-on experience on the actual
population of the website and the use of the NGS. PNA shall identify the
participants to this training representing the various users.
2.8 Website Usability/Testing
Aside from the testing done by the NCC, further testing of the website functions
will be administered by the PNA. The testing will be done for a week once the
website is initially published by NCC as an attachment folder in the NCC website.
Updating/population of the website content will be done through the Internet
using the CMS.
Testing of the NGS will be conducted simultaneously at the PNA head office, under
a simulated environment. In here the news reporters from specified dispatch
points will be the first to use their module by submitting several news items
through their module. As soon as a news item is received, the editor/s, through
their module will review, edit, delete, cancel, postpone/delay, approved and or
post the said item in either the website or on the subscribers module. The
subscriber then with their username and password can now access/download,
print or save in a storage media the news item.
NCC will be present on the 1 st day of the testing period as an observer. Results of
the test conducted will be forwarded to NCC for immediate correction of errors or
enhancement of the functionality of the website.
2.9 Turnover/Deployment
After the website, CMS and NGS testing has been completed and necessary
modifications has been done, NCC will turnover the source codes in compact disk
with the users manuals. The PNA in turn has to present NCC a certificate of
acceptance signed by the PNA head to indicate that the undertaking with PNA has
been successfully complied and delivered.
SECTION 3. DUTIES / RESPONSIBILITIES
3.1

NCC shall:
3.1.1

Render the consulting/advisory services and technical expertise

required for the entire duration of the Project;

3.1.2

Ensure that the Project milestones are met and that all
components, output and services required are in accordance with the
requirements;

3.1.3

Assign a Project Team with a Project Leader who shall be

responsible for undertaking all activities related to this Project;

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3.1.4

Provide user training free of charge, for the PNA website users
(content provider, administrator and reporters); and,

3.1.5

To define the technical specifications of the required operating

environment in terms of hardware, software and internet service
provider.

3.2

PNA shall:
3.2.1
3.2.2

Provide all the images needed in the web in hard copy and in
scanned file preferably in gif or jpg format;
Make available all (content) information in soft and hard copy;

3.2.3

Ensure that all information to be uploaded/encoded in the

website are approved by the PNA management;

3.2.4

Provide a counterpart team that will ensure management

commitment, participation and support at the same time be
responsible in assisting the needs of the NCC team;

3.2.5

Provide the necessary working space, IT requirements

manpower, office supplies, hardware and software when working at the
clients office; and,

3.2.6

Provide the hosting of the website.

SECTION 4. PROJECT DELIVERABLES

Towards the end of the Project Timetable, NCC will provide PNA the following
deliverables:
4.1 The PNA website with Content Management System and News Gathering
System;
4.2 Documentation Manuals with:
4.2.1
CD copy of the website, CMS & NGS source codes with installers;
4.2.2
User Manual; and
4.2.3
Technical Manual.
SECTION 5. EFFECTIVITY
5.1 This agreement shall take effect immediately upon signing and execution
thereof by all parties and shall continue to be in effect until PNAs
acceptance of the NCCs completed project, unless otherwise revoked or
terminated earlier in the manner as provided hereunder.
5.2 This Agreement may be terminated for any cause at the instance of either
party by giving a thirty (30) day written notice to the other prior to the
intended date of termination. In this case, the termination shall be
effective only upon the concurrence of both parties who shall endeavor
to settle the matter extra-judicially during the period as much as
practicable.
SECTION 6. PROJECT COST & TERMS OF PAYMENTS

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The total cost of the Project is ONE HUNDRED EIGHTY THOUSAND PESOS (Php
180,000.00) broken down as follows:
PERSONAL SERVICES

PS & Honoraria

81,991.42

MAINTENANCE & OTHER OPERATING EXPENSES

Supplies and Materials

Computer Time (Eqpt & Facility Usage)

Travel/Transportation and Communication

Expenses

Representation Expenses
OTHERS
TOTAL

24,100.00
46,000.00
4,000.00
2,000.00
23,713.71
181,805.13

TOTAL ESTIMATED COST PROJECT COST (rounded off)

Php
180,000.00

Payment of the project cost shall be based on the following schedule:

Upon signing of the Service Proposal Agreement, PNA will pay

PhP 90,000.00 or 50% of the project cost to NCC as website development
mobilization fund.

Upon submission and acceptance of the developed website and

CMS, PNA will pay NCC PhP 90,000.00 or the remaining 50% of the project
cost.

If the Project is terminated before final acceptance of all

deliverables, NCC will be paid for the work up to the date of termination.

SECTION 7. WARRANTY
7.1 The website with CMS and NGS is warranted for one year from the date of
acceptance.
7.2 Systems errors will be corrected within 48 hours upon notification, free of
charge, during the said warranty period.
7.3 NCC to provide assistance to PNA in the proper utilization of the web-based
system, however, development of additional features/requirements will
be charged separately. Costing will be according to the complexity of
work to be done.
7.4 Warranty covers the labor component only and does not include incidental
expenses, like but not limited to transportation expenses, meals,
technical service fee, etc. These services include:
7.4.1

The installation service which will be limited to the loading of

the web-based system to the required operating environment
(hardware, software and network);

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7.4.2

Software maintenance on the defects in workmanship to correct

any program error found in the original system. However, if the
error are caused by negligence, modification of the original system,
or any other cause not inherent to the original system, the NCC will
have the right to charge for such service; and,

7.4.3

NCC will provide technical support and/or answer service calls.

However, for on-site technical assistance expenses relative to the
said service call will be shouldered by the PNA.

SECTION 8. GENERAL PROVISIONS

8.1 PNA shall, in no event, sell, distribute copy of the website and its CMS to
any other party.
8.2 Acceptance.
Within five working days after the website has been
published in the internet, PNA will provide NCC with one of the following:
8.2.1
8.2.2

written approval of the deliverables; or

written list of the changes that must be done by NCC prior to
PNAs approval of the deliverables;

The deliverables will be considered acceptable to PNA should NCC

receive no feedback within the prescribed period.
8.3 Non-Solicitation. Neither Party will solicit for employment, or hire the
others current or future employees, either directly or indirectly, during
the Term of the Agreement and for six months thereafter, without first
obtaining the other Partys written consent.
8.4 Violation of any of the provisions herein stipulated shall be a ground for
outright revocation of the conduct of the contract plus payment of
damages at the option of the offended party.
8.5 Counterparts.
This agreement may be executed in two or more
counterparts and all counterparts so executed will for all purposes
constitute one agreement, binding on all Parties.
8.6 This Agreement is made under and shall be construed according to the
laws of the Republic of the Philippines.
8.7 Any amendment to this Agreement shall be approved by all parties in
writing and shall be made official in a supplemental Agreement.
SECTION 9. OTHER CONDITIONS
The NCC per Section 5 of PD 1480 (December 11, 1978), through its Director
General shall have the authority to grant project honoraria and overtime pay
to its personnel directly involved in the Project during the effectivity of this
Agreement. The corresponding costs associated thereto shall be charged
against the PNA Project.

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IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the
______ day of _____________, 2004 in Manila City.
FOR: THE NATIONAL COMPUTER
CENTER
BY:

FOR:
BY:

THE PHILIPPINE NEWS AGENCY

_________________________________
ANGELO TIMOTEO DIAZ DE RIVERA
Director General

_____________________________________
LUCITA C. SANCHEZ
Director V

SIGNED IN THE PRESENCE OF:

________________________________
TERESITA B. ROBERTO
(witness)

_____________________________________
ILUMINADO M. VARELA, JR.
(witness)

_______________________
PNA-Chief Accountant
AVAILABILITY OF FUNDS CERTIFICATION

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ACKNOWLEDGEMENT
(Republic of the Philippines) S.S.
(Manila)
Before me a Notary Public for and in the City of _____________________________
personally
appeared
this
______________________,
2004
Mr./Ms.
_____________________________
with
Community
Tax
Certificate
Number
__________________________ issued on ___________________, at ________________________,
and Mr./Ms. _____________________, known to me to be the same persons who executed
the foregoing Service Agreement for and in behalf of their respective principals, and
acknowledged to me that Agreement consist of ______ pages, including the page
where this acknowledgement is made, and has been signed by the parties and their
witnesses on all pages.
Doc. No. _______
Page No. _______
Book No. _______
Series of 2004

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