July 6, 2010

MS. EMELITA E. LOFSTRAND
Sales Executive
Kar Asia, Inc.
J.P. Laurel Avenue, Davao City
Telephone No. 222-1111, 298-1490

Dear Ms. Loftstrand:

We are happy to notify you that your Bid dated June 16, 2010 for Supply and Delivery of Two (2) units Asian Utility Vehicle (AUV), Non-Aircon, Close Type with Engine Displacement of not less than 2,400 cc but not more than 2500 cc Diesel Engine (Package 1) for the Contract Price of equivalent to One Million Three Hundred Seventy Nine Thousand Six Hundred Twenty One & 46/100 (P1,379,621.46), which was approved for award per DCWD Board Resolution No. 10-235 dated July 3, 2010 is hereby accepted.

You are hereby required to provide within ten (10) days the performance security in the form of manager’s check, cashier’s check or irrevocable letter of credit amounting to Sixty Eight Thousand Nine Hundred Eighty One Pesos & 07/100 (P 68,981. 07) or a Surety Bond callable upon demand issued by a Surety or Insurance Company duly certified by the Insurance Commission as authorized to issue such security amounting to Four Hundred Thirteen Thousand Eight Hundred Eighty Six Pesos & 44/100 (P413,886.44) as stipulated in the Instructions to Bidders.  Failure to provide the performance security shall constitute sufficient ground for cancellation of the award and forfeiture of the bid security.

Very truly yours,

RODORA N. GAMBOA
General Manager

Conforme:

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(SIGNATURE OVER PRINTED NAME)

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