Defense chief orders probe on public bidding for purchase of weapons

Defense Secretary Avelino Cruz Jr. ordered yesterday the Armed Forces of the Philippines (AFP) to conduct a public bidding for the purchase of P1.5 billion worth of weapons and communications equipment.

Cruz’s directive followed separate rulings by the Government Procurement Policy Board (GPPB) which found the AFP contracts in 2003 for the acquisition of additional squad automatic weapons (SAW) and VHF/FM tactical radios to have failed the requirements that allow direct or single-source contracting.

In 2003, the AFP contracted suppliers for the purchase of P593 million worth of SAWs and VHF/FM radios valued at P930.8 million. Both procurements were subject to direct contracting or single-source contracting, the mode of purchase justified by the AFP, which cited the need for additional units of the weapons and tactical radios to be "interoperable" with those in the AFP inventory previously acquired through public bidding from the same suppliers.

But the GPPB, an inter-agency body created under Republic Act 9184 or the Government Procurement Reform Act, found that the contracts did not fall under the specific instances provided by law where direct contracting of single-source contracting is allowed. The GPPB held that an open and competitive bidding must be conducted for the purchase of the equipment.

Under Executive Order No. 423 issued in April last year, the GPPB is mandated to review all government contracts worth at least P500 million that have not undergone public bidding. The GPPB is composed of 12 cabinet secretaries and serves the policy-making body of the government on all matters relating to procurement.

In his order, Cruz said: "Considering the immediate need of the AFP for the mission-essential equipment in its internal security operations, the AFP is directed to study and recommend the most advantageous mode of procuring the SAWs and tactical radios, taking into account the GPPB rulings and the recommendations of the DND bids and awards committee (BAC)."

"The mode of procurement to be recommended by the AFP must be compliant with RA 9184 and all legal requirements, and take into account factors such as commonality and/or interoperability of AFP equipment," he said.

He added there was also a need to "study the feasibility and affordability of front-loading" the total requirements of the AFP for SAWs and tactical radios for the next six years to address the need for commonality and/or interoperability of AFP equipment.

The use of common and/or interoperable equipment by the AFP will allow optimum use of the equipment, and provide for easy handling and maintenance by field combatants.