Boncodin defends G-EPS bidding

Waving aside criticisms from losing bidders, Budget Secretary Emilia Boncodin declared that the awarding of the P244-million Government Electronic Procurement System (G-EPS) to a foreign-led consortium was transparent, done according to the rules and executed in good faith.

In an exclusive interview with NetWorks, Boncodin expressed disappointment over how losing bidders have resorted to moves apparently to pressure her office into reversing its decision.

Attacks against her office came after she had even given her word to the losing suppliers during a meeting that she would respond to their complaints at an appropriate time.

The G-EPS is a showcase IT project for the Arroyo administration. It was awarded to iTBF Philippines for P244 million, payable within a five-year contract period.

Members of the iTBF consortium are ABC Consulting, East West Electronic Trade Center, Infomediary Phils. and Right Computers Inc.

Boncodin said she wouldn’t be surprised if the losing bidders would file a lawsuit, but said the awarding process was carefully and transparently executed, and that the contract would be signed soon.

If there’s a lawsuit, "so be it," she added.

Boncodin said some of those who tried to bid for the project have been forthright and have set a meeting with her to explain their petitions.

Ayala Systems Technology Inc. (ASTI), for example, has made it public that it sent letters to the secretary last Dec. 2 and Jan.16 to air its issues. Boncodin said she also met with ASTI president Gerry Favila and told him she would respond to their letters.

"They cannot tell me what I have to do. I will do what I have to do under the law," Boncodin said. "We have tried to consult with the people who are involved and sought the guidance of the Procurement Policy Board on how to proceed. The Board has decided on it, so I will do what (it) has directed me to do."

Sore spots

ASTI’s concerns were related to the location of the G-EPS mirror or remote back-up site, the legal personality of iTBF Philippines, and how the bids from the two other groups were evaluated.

Boncodin said the DBM didn’t specify that the mirror site should be in the Philippines or abroad. "We will have it where the technology is best and where it is safe," she said.

iTBF has proposed a mirror site in California.

"We only said that it should be accessible. And you know that with IT, you could be in London and the system would still be accessible to you," said Boncodin, who has made immediate plans to inspect the California facility during her forthcoming trip to the United States.

Meanwhile, the winning bidder, iTBF Philippines, got a lot of flak for allegedly not being registered with the Securities and Exchange Commission (SEC).

In addition, Thomas Price, president of East West Electronic Trade Center, which leads the consortium, was accused by a former colleague in Veronex Technologies Inc. of fraud and unfair business practices. He was accused of "stealing" from Veronex the idea behind the iTBF software that will be used for the G-EPS. He has denied the allegations.

Boncodin said that while the accusations hurled against Price are a cause for concern, she noted that it is more an issue between Price and his critics.

"For as long as he is not disqualified (to bid), then I give him the benefit of the doubt. Now, if it’s proven that he’s guilty and he’s a fugitive from justice, that’s another matter. But we have looked (into it) and he’s not. He’s a free man," she said.

Boncodin was also adamant that submitting a proposal six minutes late is not a "minor" reason for disqualification, as one losing bidder claimed.

"It’s major because it gives you a sense of the seriousness of the bidder. In Napocor (National Power Corp.), they had a bidder once who was one second late and they didn’t accept the bid. What more with six minutes? The bidders cannot contest the clock or the procedures," she said.

Finally, Boncodin said it’s not fair to release information on how the judges scored or conducted their evaluation of the different proposals.

"It’s prohibited. They (bidders) have the right to know the scores given to them, but not how the individual judges scored. If we do that, nobody would want to be a member of the panel. Because even if you are doing it in good faith you are going to be questioned by any person who suspects everything. An evaluation is an evaluation. It’s a judgment of those doing the evaluation. It’s the judgment of a group," she said.

Irony

The irony of the contested bidding is that the project aims to promote transparency in government. But Boncodin said the allegations are simply "part of the territory" for someone working in government.

She said no matter how careful they are in making sure things are transparent and in good faith – to the extent of having the proceedings recorded on video – not everybody would agree.

"The G-EPS is a very important project so I want to make sure it’s transparent and in accordance with the rules and that nobody could question it. When somebody did, I was so shocked," she said.

It’s damned if you do, and damned if you don’t, Boncodin said. The government is criticized for being too slow, but also draws flak when it moves fast.

The iTBF consortium bid P249 million for the G-EPS project. The negotiated contract cost is now down to P244 million. Boncodin said such a project would have cost the government at least P500 million but the DBM drove down the price hard.

"The contract now, the way it’s drafted and approved, is not in any way disadvantageous to the government compared to the original one. It could only be better for the government," she said.

Boncodin said the project, which has already been delayed, should be implemented as soon as possible.

"We want to show by example," Boncodin said. "We want to show that procurement can be done with integrity. And it’s done with integrity. I just want to assure the public that we want to be as fair as possible."