2 oil firms bid for AFP fuel, lubricant supply

MANILA, Philippines – Two firms participated in the bidding for the purchase of more than P8-billion worth of fuel and lubricants for the military, the Department of National Defense said yesterday. 

Defense Assistant Secretary Ernesto Boac said Petron Corp. and Balayan Refilling Station submitted documents to the Bids and Awards Committee (BAC) last Thursday.

Seaoil Corp. and Filpride Resources Inc. were not able to submit the requirements within the deadline, he added. 

Boac said the BAC failed to clarify some of the eligibility requirements.

“The BAC has deficiencies in this case,” he said.

“I have to answer. We did not clarify some matters about the submission of the eligibility.

“Based on our bulletin, each lot is a separate project. The intent is for each lot to be covered by complete set of eligibility, technical and financial requirements.”

Boac said the BAC will no longer entertain other bidders because the Nov. 11 deadline for the submission of requirements has lapsed.

“We will evaluate who offered the lower price,” he said.

“If there’s only one proponent, as long as they can comply with all the technical and eligibility requirements and it will not exceed the approved budget for the contract, then we may declare a single calculated bid.”

Boac said the BAC will issue a supplemental bulletin over the weekend to spell out the processes and procedures to be followed by the bidders.

“Our objective here is to come up with a contract with proponents who are really responsive,” he said.

They will go through the eligibility documents on Monday and determine whether the bidders can comply with the project requirements, Boac said.

The BAC required that the bidders submit separate documents for each area to enable small players to participate.

However, Petron and Balayan submitted only one set of bid documents for the entire 11 areas.

The BAC was supposed to open the bids last Thursday but was forced to reschedule it on Nov. 15 due to the need to clarify matters on documentary requirements.

 The project costs P8.05 billion and will involve the purchase of a one-year supply of fuel and lubricants for military aircraft and vehicles.

The purchase of fuel would entail around P5.76 billion, while the acquisition of aviation petroleum oil and lubricants would cost P1.98 billion.

On the other hand, the procurement of lubricants for other vehicles would cost P303.61 million.

The supplies will be distributed to 11 different areas with military assets.