Only one firm joins bidding for Army's ammunition supply

MANILA, Philippines - Only one proponent has submitted a bid for the contract involving the purchase of more than P190 million worth of mortar and ammunition for the Philippine Army.

The joint venture of Taguig-based Joavi Philippines Corp. and Israeli firm Talon Security Consulting and Trade Ltd. offered to undertake the project for P189.5 million, lower than the P190.32-million approved budget for the contract.

The approved budget for the 100 units of 81 mm mortar with integrated logistics support was P170.32 million, while that of the 2,000 rounds of ammunition was P20 million.

Joavi offered P170 million for the mortar and P19.5 million for the ammunition.

The joint venture was the only proponent that purchased bid documents for the project. It needs to satisfy the post-qualification requirements before it can bag the contract.

The post-qualification stage seeks to validate the eligibility documents of the proponent and to determine if it is capable of undertaking the project.

Anthony Hernandez, Joavi managing director, is confident the firm can comply with the post qualification requirements.

“This is not the first time we would transact with the government,” he said.

“We have been providing supplies to the military for the past three years.”

The firm has completed 35 similar projects with the government, Hernandez said.

Last year, Talon, Joavi’s partner, was dragged into controversy after then Defense Secretary Gilbert Teodoro scrapped the bidding for the purchase of P500 million worth of mortar ammunition.

The Department of National Defense decided to hold another bidding for the project after accusing Talon of submitting false documents.

Talon filed a case before the Quezon City Regional Trial Court, which issued a temporary restraining order on the re-bidding.

Hernandez believes their joint venture with Talon would not be tainted with any controversy.

“We do not see any problem,” he said.

Hernandez said the Israeli firm has been cleared of allegations. 

“The controversy last year was an isolated case,” he said. “Talon is a reliable supplier. If you’ll look at the accomplishments of Talon, I can say that the company is very credible.”

They aim to deliver the ammunition and mortar within the second quarter of next year, Hernandez said.

Defense Assistant Secretary Willie Palugod, Bids and Awards Committee vice chairman, said the post-qualification process could be conducted within the year.

A notice of award may be issued on January next year, he added. The delivery of ammunition and mortar is crucial as the supplies would be used in combat operations, Palugod said.