Military procurement goes online

To greatly reduce the incidence of corruption and bureaucratic red tape, the Department of Defense (DND) will launch next week the country’s first government online procurement system, which puts the bidding processes of the department and the Armed Forces on the Web.

Defense Secretary Orlando Mercado said the Computer-Aided Procurement System (CAPS) will create full transparency in the procurement of commonly-used goods and supplies, such as combat clothing and individual equipment (CCIE) of soldiers, using information and communications technology.

"Gone are the days when unscrupulous suppliers and corrupt officials enjoyed symbiotic relationships which resulted in the loss of millions of pesos in taxpayers’ money and endangered the lives of soldiers in the field because of the poor quality of their equipment," Mercado said.

"The DND’s Computer-Aided Procurement System is in line with President Estrada’s policy to maximize transparency in government transactions and to minimize, if not eliminate, opportunities for graft and corruption," he said.

The CAPS was designed by the Office of the Armed Forces Deputy Chief of Staff for Communications, Electronics and Information Systems.

The system is also designed to simplify the procurement process, and reduce costs, not only in monetary terms, but also in personnel hours spent on procurement activities.

From a previous 100 steps, from filing an application to participating in the bidding process, the CAPS will reduce the process to less than 30 steps.

While it takes almost six months before the entire bidding and procurement process is completed under the previous manual system, the CAPS can reduce the process to only more than a month.

Officials said any government agency will always be susceptible to corruption if reforms are based on personalities, not systems. The objective is to lessen the involvement of individuals in the bidding process.

Last Sept. 22, the DND conducted a public hearing attended by some 150 suppliers and contractors and defense and military officials where the CAPS’ final rules and regulations were deliberated.

It was the first time, Mercado said, that he met with suppliers and contractors, having adopted a policy not to deal with them in the past two years.

Lawyer Venir Cuyco, of the Office of the Defense Undersecretary for Operations, said the hearing was successful, with the suppliers asking only for clarifications and requesting that they be trained on using the DND’s online system.

The implementing rules and regulations become effective Oct. 8.

The DND’s CAPS, Mercado said, was first envisioned when he assumed office in 1998. At that time, there were no laws governing electronic procurement. Previous laws required a paper trail, he said.