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)