DND bidding for fuel, lubricants fails

MANILA, Philippines - The Defense department’s Bids and Awards Committee (BAC) has declared the bidding for the purchase of more than P8 billion worth of fuel and lubricants by the military a failure after the two bidders submitted erroneous eligibility documents.

Defense Assistant Secretary Ernesto Boac said the documents submitted by listed oil firm Petron Corp. and Balayan Refilling Station failed to satisfy some of the criteria set by the BAC.

Boac, who chairs the BAC, said Petron committed some errors in computing its net financial contracting capacity.

“Whether they are financially capable or not is not the issue. The issue is the submitted document has some errors in the computation of their net financial contracting capacity,” he said in an interview.

“They (Petron) acknowledged that there is an error in the computation of their net financial contracting capacity,” he said.

On the other hand, Balayan failed to follow some rules on the submission of technical eligibility documents.

“Balayan is eligible... but when we opened their technical folder for the four lots they are participating in, the technical specifications for the four lots are included in one folder which is a violation of the procedures,” Boac said. 

“For each lot, there should be separate technical and financial (documents). That is stated in the rules,” he added.

Boac said the BAC cannot consider the bids since the deficiencies should have been corrected before the requirements were submitted.

“It’s non-discretionary on our part. We cannot correct that... It (error) should have been corrected even before they submitted the bidding documents. These have been submitted so we cannot return the bidding documents for them to correct,” he said.

Boac said they aim to hold another bidding for the project within the year. He said bids from other interested firms will be welcomed.

“Everybody for that matter (can submit offers). There is a second bidding so we go back to the processes... Any interested bidder is welcome to participate,” he said.

Boac said the failed bidding would not put a dent on the military’s supplies since the fuel and lubricants to be bought are intended for next year.

The project costs P8.05 billion and will involve the purchase of a one-year supply of fuel and lubricants for military aircraft and vehicles.

The purchase of fuel would entail around P5.76 billion while the acquisition of aviation petroleum oil and lubricants would cost P1.98 billion.

On the other hand, the procurement of lubricants for other vehicles would require the government to shell out P303.61 million.

The supplies will be distributed to 11 different areas or lots with military assets.