Department of National Defense
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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. -
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 -
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 -
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). -
Coast Watch Station (stage/status: contract
being finalized)
Highlight: Surface search radar (Furuno) to be acquired to equip one
coast watch station. . -
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. -
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. -
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 -
Veteran Memorial Medical Center Various
Supplies/Operational Requirements (stage/status: post qualification of
lowest calculated bidders or LCBs) -
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. -
Government Arsenal Modernization Project:
Stage/status: Drafting of Requirements -
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) -
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)