DND scraps chopper contract
The Department of National Defense (DND) has scrapped the bidding for P1.2-billion worth of night-capable attack helicopters after investigation revealed several irregularities in the process.
Defense Secretary Gilberto Teodoro has also ordered the investigating panel to determine the possible liabilities of the private company that offered the aircraft, as well as defense and military officials who were involved in the bidding.
Defense Undersecretary Ariston delos Reyes, who led the investigation, told reporters yesterday that the bidding for the six helicopters was declared null and void after it was found that the helicopters offered by Asian Aerospace Corp. did not meet the technical specifications required by the Air Force.
Delos Reyes said investigations revealed that the MD530F helicopter offered by Asian Aerospace Corp., the only company that pre-qualified in the bidding process, did not meet the 3,000 lbs. payload required by the PAF.
This finding of the DND bids and awards committee (BAC) was based on a previous communication of an officer of the company to the BAC chairman, as well as on the performance specifications of the MD530F helicopter posted on the website of McDonnell Douglas, the company represented by Asian Aerospace in the
He explained that there had been an alteration of the technical specifications of the NCAH, which were previously set by the PAF.
“These were changed without the approval of the secretary of national defense,” he said.
In its findings, the DND investigating panel found that there were deficiencies in the post qualification conducted by a team that was sent to the
“They did not test fly the MD530F helicopter with at least a 3,000-pound load. Neither did the post-qualification team secure documents and manuals, which would establish that the MD530F meets the 3,000-pound minimum payload requirement. Thus, the post-qualification conducted on the MD530F helicopter did not comply with the 3,000-pound payload requirement,” the panel said in its report submitted to Teodoro last Jan. 22.
Aside from alterations on the technical specifications, Delos Reyes said they have discovered that the same company offered 12 MD350F helicopters to the government for about the same price it is quoting for six units.
Delos Reyes said technically, there was no overpricing for the night-capable helicopters because the bid of Asian Aerospace was within the approved budget for the contract, but based on the earlier offer of 12 for the same price, it was excessive and disadvantageous to the DND and the AFP.
In his memorandum dated Jan. 24, Teodoro authorized the DND BAC and the investigating panel to determine whether or not Asian Aerospace Corp. should be meted administrative sanctions, such as suspension of one year (on the first offense) or two years (for the second offense) from participating in the public bidding process; and the forfeiture of the bid security that it posted in connection with the acquisition project.
Teodoro has also authorized and directed the DND BAC to conduct proceedings to determine whether or not the matter should be referred to the Department of Justice for possible prosecution of the responsible directors and/or officers of Asian Aerospace.
He has also ordered the investigating panel to determine if charges could be filed against concerned officials, officers or personnel of the DND and/or Armed Forces of the
The members of the DND BAC are Undersecretary Roberto Nuqui, Director Edna Guevarra, Director Gladys Cagado, Brig. Gen. Gerry Jalandoni, AFP vice chief Lt. Gen. Antonio Romero and Maj. Gen. Pedro Ike Insierto, who serves as the provisional member.
The procurement is part of the AFP’s Capability Upgrade Program, a comprehensive five-year modernization project aimed at improving the equipment of the military until 2010.
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