Bid challenge fee set at P112 million

MANILA, Philippines – A Commission on Elections (Comelec) official said yesterday losing bidders would have to pay a filing fee of P112 million if they want to contest the results of the poll body’s automation project before the entire Comelec.

Comelec spokesman James Jimenez said that under the terms of reference (TOR) of the contract, losing bidders may question the bidding results before the Comelec by paying a non-refundable filing fee of P112 million or one percent of the P11.3-billion automation contract being bidded out by the Comelec’s Special Bids and Awards Committee (SBAC).

“It is in the TOR that they have that recourse, except that they have to pay a non-refundable P112-million filing fee,” he noted.

Jimenez refused to ascertain if filing an appeal before the entire Comelec is the last recourse for losing bidders who have signed waivers relinquishing their right to question the bidding results or to file a temporary restraining order before the Supreme Court.

“Under the rules, that is their final recourse. I’m sure they can think of any if they just put their minds to it,” he added.

Seven consortiums have been bidding for the project but only two of them remain in the race.

Leading the pack is the conglomerate of Smartmatic of The Netherlands and Total Information Management Corp. of the Philippines which had already hurdled the eligibility, technical and financial screening of SBAC.

The other bidders have been disqualified for failing in various requirements over the past two weeks.

The consortium of Sequoia Voting Systems and Universal Storefront Services of the Philippines was disqualified by the Comelec-SBAC last night because the committee could not give weight to the grounds the consortium gave in their motions, according to SBAC chairman Ferdinand Rafanan.

“SBAC denied the motion of Sequioa because it’s just a newly incorporated company. It got its certificate of registration last April 16, 2009. It could not submit documents for technical and financial eligibility required by the Terms of Reference and Implementing Rules and Regulations of the Government Procurement Policy Board,” Rafanan said in an interview.

SBAC had disqualified the Sequioa consortium for failing to submit various documents, including the Certification of Accreditation as Importer.

Rafanan added that “being new is not at all a virtue that would lead to its (Sequioa group) exemption for submission of requirements.”

With that decision, two bidders remain in the race – the consortium of Smartmatic and Technology Information Management Inc. and the conglomerate of Gilat and F.F. Cruz and Company Inc.

SBAC is expected to rule today on the motion for reconsideration filed by Gilat, which was earlier disqualified for failing some technical requirements.