Israeli firm lowest bidder in AFP howitzer deal

MANILA, Philippines - An Israeli firm has been declared as the lowest bidder in the Armed Forces of the Philippines procurement project involving 12 units of 155 mm howitzers and ammunition.

Elbit Systems Ltd. offered to supply the artillery pieces and ammunition for P368.84 million, lower by about P70 million than the P438.62-million approved budget of the project.

Elbit’s offer was also lower than the bid of Bosnia Herzegovina-based BNT Tvornica, which offered to supply the equipment for P411.69 million.

The project involves the acquisition of 12 units of 155 mm towed howitzers, 240 rounds of ammunition and integrated logistics support.

The bidding for the project was held last month in Camp Aguinaldo, Quezon City. The howitzers are expected to boost the military’s security capabilities.

Elbit has to satisfy the post-qualification requirements before it can be declared the winning bidder. The post-qualification stage, which seeks to determine if the lowest bidder is capable of undertaking the project, will be held this month.

The winning bidder is expected to deliver the goods within 360 calendar days upon the issuance of the letter of credit, a document that assures the supplier that the government will fulfill its obligations.

The project is part of the Revised Armed Forces of the Philippines Modernization Program contained in a law signed by President Aquino in 2012.

The law aims to improve the capabilities of the military, which have been depleted due to lack of resources.

The law requires the government to allot P75 billion for the first five years of the capability upgrade program.