The February Fort Bonifacio Incident
Date Updated: Monday September 04, 2006

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Department of National Defense

  1. Squad Automatic Weapon Phase II
    Stage/status: Contract approval
    Highlight:  Continuation of a program to acquire the FN Minimi Squad Automatic Weapon already in use by the Army and the Marines.

  2. VHF Hand-Held Radio II: Stage/status: Disapproval of the contract and re-bidding of the project
    Highlight: Continuation of a program to acquire frequency hopping man pack radios

  3. Patrol Killer Machine (PKM) In-Country Upgrade
    Stage/status: Pre-bid conference held today, 30 Sept 2005; bid submission and opening scheduled on 24 Oct 2005
    Highlight:  Two units acquired from South Korea this year.  Require refurbishment prior to introducing into PN service.  Re-engining is also planned.  this is already the second bidding.  The first bidding had failed to meet minimum requirements

  4. Night Fighting System (stage/status: re-bidding after 4 initial bidders all failed their eligibility to bid)
    Procurement Stage: Submission and Opening of Bids
    ABC     :  P350,665,460.00 (for Lot 1) and P60,636,940.00 (for Lot 2)
    Highlights: Separate from the homegrown PN/PMC night fighting weapons system.  The pre-bid conference for this project was held more than a month ago.  Four (4) supplemental bulletins were issued to clarify and/or modify the terms of the bidding documents.  At the start of the submission and opening of bids, the head of the TWG for the project gave a briefing on the procedure to be followed in checking the eligibility requirement of the bidders, the declaration of the eligibility to bid, the declaration of a “passed” contract, the qualification for further evaluation towards the determination of the Lowest Calculated Bid (LCB), further evaluation of LCB, and the determination of Lowest Calculated Responsive Bid (LCRB).  The following companies participated in the bidding:  Newcon Optik (Canada/Ophir), Insight Tech, Inc (USA/Deftecsystem), Hanwha Corp. (Korea/Sy Lee), and Nivisys Industries (USA/Asia Borders).  The review of the eligibility documents of the 4 bidders were simultaneously yet independently studied by members of the technical working group.  All bidders, which are all foreign companies, were declared ineligible after failing to comply with the eligibility requirements, particularly lack of article of incorporation, audited financial statement, and income tax return.  Due to the above, the BAC declared a failure of bidding.  The schedule of re-bidding will be announced after publication of a new Invitation to Apply for Eligibility to Bid (ITAEB).

  5. Coast Watch Station (stage/status: contract being finalized)
    Highlight:  Surface search radar (Furuno) to be acquired to equip one coast watch station. .

  6. Fixed Communication System (stage/status: 1st stage of the 2-stage procurement mode was held last September 8, 2005; new invitation to apply for eligibility and to bid (ITAEB) will be issued on October 20, 2005)
    Procurement Stage:  1st Stage – Opening and Submission of Bids
    ABC:  P447,360,000.00
    Length of Delivery:  240 calendar days upon issuance of Notice to Proceed
    Highlights :  Through a Supplemental Bulletin, the deadline for submission and opening of bids for the 1st stage bidding for this project was changed from 25 August 2005 to 8 September 2005, 9:00 a.m.  On the day of submission and opening of bids, 4 companies complied, namely Alcatel Phils., Inc., Lucent Technologies, Nera Phils., and Ceragon Networks.  None of them failed when their eligibility envelopes were opened.  During the initial evaluation of the technical proposals of the 4 bidders, the BAC declared that they all passed, yet subject to post qualification/evaluation.  BAC shall formally announce in writing, through the Secretariat, the results of the evaluation.  Schedule of the opening of the revised technical proposal and their financial proposals (i.e. 2nd phase of a two-stage bidding process) is scheduled on October 20, 2005 due to request of bidders for longer time to prepare revised technical proposals.

  7. Jacinto Class Patrol Vessel Engineering Upgrade (stage/status: bid opening was re-scheduled on October 7, 2005)
    Procurement Process:  Open Competitive Bidding (Two-Stage)
    Procurement Type:  Procurement of Goods (Re-Bidding)
    Procurement Stage:  Bid Submission and Opening
    ABC: P354,000,000.00
    Contract Duration:  400 calendar days upon issuance of Notice to Proceed
    Highlights:  Due to a motion/request of bidders for longer time to comply with all the eligibility, technical and financial requirements of the DND BAC, bid submission and opening was re-scheduled on October 7, 2005 at 9:00 a.m., Silid Panday Pira, Bulwagang Mabini (OJ9), Camp Gen. E. Aguinaldo, Quezon City.
    Issues/Concerns:  Clarification of details of eligibility requirements especially when it is applied to foreign bidders, such as tax clearance, SEC registration certificate, statement of assets and liabilities, etc.
    Highlights:  Due to failure of bidding for this project last June 2005, DND BAC published another Invitation to Apply for Eligibility and to Bid (ITAEB).  Henceforth, a pre-bid conference on the project was scheduled last September 8, 2005.  The conference explained the detailed requirements for the engineering upgrade of Philippine Navy’s three (3) JCPV, particularly the need for a one hour maximum running speed of 25 knots.  The upcoming schedule of activities for the project was also noted as follows:  20 September 2005 – submission and opening of bids; 21 September to 1 October 2005 – bid evaluation; 2 to 14 October 2005 – post qualification/evaluation; and 30 October 2005 – issuance of Notice of Award.  Issues and concerns related to GPRA’s “counter trade” provision were raised during the open forum.  In particular, The BAC will seek further clarification with GPPB and PITC on this matter, particularly if such provision shall apply to cumulative or itemized cost of import that shall go beyond $1 million.  A bid bulletin shall be expected from the BAC.

  8. F-27 500 (stage/status: post qualification of LCB; project TWG to revise post qualification report)
    Highlight:  Second hand, zero timed/refurbished airframe to meet a PAF medium lift transport requirement

  9. Veteran Memorial Medical Center Various Supplies/Operational Requirements (stage/status: post qualification of lowest calculated bidders or LCBs)

  10. DND/AFP Petroleum and Oil Lubricant Requirement (stage/status: negotiated procurement for cy 2005 4th quarter requirements; re-bidding of cy 2006 requirements)
    Procurement Mode:  Open Competitive Bidding
    Procurement Type:  Goods (Single Stage)
    Procurement Stage:  Submission and Opening of Bids
    ABC:  P296,096,449.68 (for 4th qtr cy 2005) P2,177,757,548.40 (for cy 2006)
    Highlights:  The head of the TWG of the project explained the procedure to be followed in checking the eligibility requirement of bidders, the declaration of the eligibility to bid, the declaration of a “passed” contract, the qualification for further evaluation towards the determination of the Lowest Calculated Bid (LCB), further evaluation of LCB, and the determination of Lowest Calculated Responsive Bid (LCRB). Only Petron submitted its eligibility envelope, technical proposals and price envelope.  Yet, upon initial evaluation of the TWG, it found out that Petron has no tax clearance due to alleged/pending liabilities.  The BAC initially considered this bidder to pass the eligibility requirement provided that such liabilities would be subjected to further verification.  Upon opening of the price envelope of this bidder, the BAC learned that the bid of Petron for the POL requirements for the operational areas for cy 2006 amounts to P1.6 billion, whereas the ABC for this is only P1.59 billion.  The TWG recommended to the BAC that Petron’s financial proposal be accepted, again subject to further evaluation.  (During the post evaluation, Petron failed for its bid for the POL requirement of AFP for cy 2006 and the 4th quarter of cy 2005.  BAC decided to opt for negotiated mode of procurement for POL requirement for 4th qtr of cy 2005 considering the urgency of the requirement.  A MOA is being prepared and bid documents for this project is being revised.)
    General Observation             :  For this project, there was a perceived laxity in procurement due to a discretion made by the BAC and its TWG to declare the lone bidder eligible to bid despite the fact that bid price (which was P1.6 billion) is above the ABC for POL requirement for cy 2006 (which amounts to P1.59 billion).  Strict compliance to the pass-fail rule, as provided for by the law and its IRR, was expected.

  11. Government Arsenal Modernization Project:  Stage/status: Drafting of Requirements

  12. Rehabilitation of Military Shrine Services – Lot 1: Ilocos Shrine, and Lot 2: Kiangan Shrine (stage/status: bid opening was held last 22 September 2005; currently doing post qualification/evaluation of LCBs)

  13. Government Arsenal’s Acquisition of 228 Tons of MRM and 21.5 Tons of Propellant Powder (stage/status: post qualification of LCB for 228 Tons of MRM; failed bidding for 21.5 Tons of Propellant Powder, and adoption of negotiated procurement for this project)

Philippine National Police

Supply and Delivery of 62,000 Rounds of Cartridge Caliber 5.56mm Ball (stage/status:  bid submission and opening scheduled on October 11, 2005 at 10am)