DOTC disqualifies bidder for P8.2-B LTO IT project

MANILA, Philippines - The Department of Transportation and Communications (DOTC) has disqualified yet another bidder for the P8.2-billion road information technology infrastructure project of the Land Transportation Office (LTO), and is now evaluating the bid of the last remaining qualified bidder.

DOTC Undersecretary Jose Perpetuo Lotilla, who chairs the agency’s Bids and Awards Committee (BAC), said the second lowest bidder Fritz & Macziol also failed the post-qualification proceedings due to technicality, just like the lowest bidder Digitext Asia Corp.

Lotilla said the DOTC has already rejected the motion for reconsideration filed by Digitext Asia and is now looking into the appeal filed by Fritz & Macziol.

He explained that the agency ruled that Fritz & Macziol failed the post qualification process in line with the provisions of Republic Act 9184 or the Government Procurement Act.

He pointed out that the agency’s BAC is now evaluating the bid submitted by the Eurolink Network.

Last Nov. 26, the DOTC conducted the bidding for the multi-billion peso project after five out of the nine companies that purchased bid documents participated in the open and transparent procurement process.

Digitext Asia submitted the lowest bid of P3.8 billion, followed by Fritz and Macziol Asia with P5.3 billion, and Eurolink Network with P5.8 billion. The bids submitted by Kaisa Consulting and Ceragon Network were not opened because of lack of technical requirements.

The four other companies which purchased bidding documents but did not participate in the bidding were Stradcom, Smartmatic, Oberthur Technologies and Indra Sistemas SA.

Last February, the DOTC announced that Digitext Asia failed in the post-qualification process due to the lack of valid mayor’s permit for year 2012 and non-submission of bill of quantities of items proposed.

The DOTC had set the bidding process for the new LTO-IT system in time for the Feb. 10 expiration of the contract of Stradcom Corp. but the bidding for a new system was delayed by several months when a Quezon City court issued a temporary restraining order (TRO).

The DOTC was only able to proceed with the bidding after the Court of Appeals favored the argument of the DOTC setting aside the TRO issued by the lower court.

Due to the delay, the agency decided to extend the contract of Stradcom while the evaluation process for the procurement of a new contractor is still underway.

Lotilla said the contract extension would ensure the continuity and non-disruption of services to the public and is allowed under emergency interim contract negotiated pursuant to RA 9184.

“After assessing the current situation, we have decided to procure the services of Stradcom for eight months in order not to disrupt the automated system now being used by LTO and avoid reverting into manual operation.

However, this contract can be terminated sooner at the discretion of the DOTC depending on how soon the new system provider can take over,” Lotilla said earlier.

The previous LTO-IT system, which has been running for 13 years, is no longer responsive to current land transportation regulation requirements.

Once the new LTO-IT system is in place, it will make it easier for authorities to recover stolen vehicles, trace smuggled vehicles, prevent double registration and monitor unregistered vehicles.

Aside from correcting the flaws of the current system, it will result in LTO earning an additional P2 billion a year since all computer fees will accrue to the government.