National Irrigation Administration cancels bid results for P1.4-billion heavy equipment

MANILA, Philippines - The National Irrigation Administration (NIA) has decided to reject and cancel the recent bidding results conducted for the planned procurement of P1.4 billion worth of heavy equipment for the restoration of irrigation facilities for the dry season planting.

However, NIA administrator Carlos S. Salazar is standing by the integrity of the bidding process for the procurement of the P1.4-billion heavy equipment.

According to Salazar, the bidding was done in strict adherence to the provisions of RA 9184 or the Government Procurement Reform Act (GPRA) and its implementing rules and regulations (IRR).

In a statement, Salazar said that “despite a media campaign to discredit the bidding, it is a matter of fact that every bidder was allowed to participate in said bidding.”

Salazar stressed that “it is also a matter of fact that there is no proof as to any violation of RA 9184 and its IRR committed by the NIA bids and awards committee (BAC) in the conduct of the bidding. It is also a matter of fact that the bidding procedure was done in an open and transparent manner.”

Unfortunately, though, Salazar said, “due to the delay suffered, it appears at this juncture that the certainty of procuring the equipment in time for the restoration of irrigation facilities during the dry season will no longer be met.”

As such, Salazar said, the NIA, as the procuring entity, “has decided to exercise its right to reject any and all bids pursuant to Section 41.1 of the IRR of RA 9184 and hereby cancels the subject bidding.”

The NIA bidding of Jan. 19 for excavators was reviewed by the Procurement Transparency Group (PTG) which reviews contracts above P100 million.

The PTG noted two irregularities.

One observation was that the NIA imposed that bidders be at least 25 years in business and second was that the NIA altered the bidding venue without due notice.

Since the playing field was deemed not level, the PTG told NIA to declare a failure of bidding and re-bid the planned purchase.

The PTG also recommended to the NIA to stick to th government procurement reform act’s pass-fail rule.

It recommended the scrapping of the “25-year rule.”

It also suggested the presence of observer-NGOs in the re-bidding.

The government procurement policy board heads the PTG. The five government members are from the Presidential Anti-Graft Commission, NEDA, DOJ, DILG and DBM.

Nine NGOs rotate for five private-sector seats, among them the Bishops-Businessmen’s Conference, Makati Business Club, Transparency and Accountability Network, and Volunteers Against Crime and Corruption.

The bishops-businessmen’s group is volunteering to observe the NIA re-bidding.

Under a program to restore irrigation ditches nationwide, the NIA had bid out Package I — 139 large excavators, estimated at P903,500,000; Package II — 69 medium excavators, estimated at P400,200,000, and Package III — 15 dump trucks, estimated at P120,000,000.

Sen. Mar Roxas was the first to criticize the NIA bidding.

The NIA bidding was held in December 2008 during the traditional holiday rush.

The notice of bidding was for “agricultural equipment,” which normally refers to threshers or tractors.

The proper term should have been “heavy machineries.”

The insertion of the 25-year rule precluded the participation of the top two distributors with 72-percent market share — Monark, carrier of Caterpillar, and Maxima, seller of Komatsu.

Monark was unable to join because of the mislabeling of the notice, Roxas said.

Maxima got disqualified for failing to meet the 25-year-rule. Maxima has been in the trade for 21 years, while Monark has 22 years.

But the principals of Monark and Maxima, Caterpillar and Komatsu, are both nearly a century old.