Group bucks DOTC move to bid out LTO IT contract

MANILA, Philippines - The Department of Transportation and Communications (DOTC) is being challenged in its move to bid out an P8 billion contract for a new Land Transportation Office (LTO) information communications technology (ICT) infrastructure and database systems provider.

The challenge comes from a group of businessmen that staged a failed takeover of the LTO’s current IT systems provider Stradcom Corp. in December 2010. The group is saying that the DOTC has no authority to conduct the bidding for the new contract.

According to the group led by Bonifacio Sumbilla, the bidding for an LTO IT contract should be conducted by the LTO, which is the procuring agency that will use or avail of the IT services and the ICT infrastructure, and not the DOTC.

This challenge was formally announced by the Sumbilla group which is claiming control over Stradcom, during the pre-bidding conference held by the DOTC at the Crowne Plaza Hotel in the Ortigas business district in Pasig City last April 25.

During the open forum of the pre-bid conference, a lawyer of the Sumbilla group calling their camp as the Stradcom Sumbilla group raised questions on the legality of the proceedings, and revealing that they have already filed a case before the courts against the DOTC public bidding.

Top officials of Stradcom, who were also in the pre-bid conference, disowned the statements of the Sumbilla group lawyer, saying they were the legal representatives of Stradcom and that the firm was intent on participating in the coming bidding of the DOTC.

DOTC Undersecretary for public-private partnership (PPP) and greenfield projects, Rene “Timmy” Licaoco brushed off the Sumbilla lawyer’s announcement, saying they will push through with the bidding of the P8-billion LTO ICT infrastructure and systems set-up, operation and maintenance contract.

Limcaoco said only a court injunction will stop the bidding process being pursued by the DOTC bids and awards committee.

It will be recalled that the failed takeover staged by the Sumbilla group led to Stardcom, headed by president and chief executive officer Cezar Quiambao, filing an administrative case against LTO chief, Assistant Secretary Virginia Torres.

Top officials and lawyers of local and foreign IT hardware and systems providers were present in the pre-bid conference last April 25, signifying strong interest among the private sector to participate in the P8 billion computerization contract.

It was learned that the deadline for submission of proposals for the set-up of the new LTO IT infrastructure and systems is on May 16.

The National Economic and Development Authority (NEDA) has already approved the DOTC project to set up a new information and communications infrastructure and database systems for the LTO, placing a whopping P11.7 billion budget ceiling.

The approval last March of the NEDA Investment Coordinating Committee has cleared the way for the DOTC to hold a public bidding to get a contractor to set up the computer infrastructure for the LTO.

DOTC Secretary Manuel “Mar” Roxas II earlier said the new IT system was expected to handle about 18 million transactions annually, or about 126 million over the entire seven years the system will be used.

The bidding for a new ICT solutions provider will be conducted in anticipation of the February 2013 expiration of the current computerization contractor, Stradcom Corp.