Extension of validity of SAROs for AFP projects sought

MANILA, Philippines –  The Department of National Defense (DND) has asked the Budget department to extend the validity of the special allotment release order (SARO) for five military acquisition projects worth P3.2 billion.

DND Assistant Secretary Ernesto Boac said the SARO for the five projects earmarked for 2009 expired last year.

“We will make representations to the DBM (Department of Budget and Management) to reiterate our recommendation for the extension of the validity of funds. Some of them are already in the advanced stage of procurement,” Boac told reporters yesterday.

“We cannot pursue the project if there are no funds,” Boac said when asked what will happen if the DBM would not approve their request.

A SARO is a specific authority issued to agencies to incur obligations during a specified period. It covers expenditures for projects of state agencies and other government entities.

The five projects are the acquisition of six units of 155 mm howitzer artillery for the Army (P186 million) and two units for the Marines (P230 million), the upgrading of a C-130 cargo plane for the Air Force (P1.769 billion), the purchase of 81 mm mortar and 2,000 rounds of ammunition for the Army (P190.3 million), and two multi-purpose Navy helicopters (P850.9 million).

The purchase of howitzer artillery units for the Army and the Marines is in the pre-procurement stage while the upgrading of the C-130 is in the contracting stage. Derco Aerospace, Inc., the firm that will undertake the C-130 upgrade, is reportedly seeking some changes in the contract.

The acquisition of the 81 mm mortar and ammunition is now in the post-qualification stage. 

On the other hand, the purchase of Navy multi-purpose helicopters has been deferred amid allegations of collusion between suppliers and the military.

Boac said the projects were not implemented in 2009 due to failed biddings and various procurement procedures.

“There have been bidding failures. There are delays we cannot avoid,” he said.

The five projects are part of the 13 acquisitions earmarked by the DND for 2009. The SAROs for the eight other projects remain valid until yearend.

Boac said they had requested the DBM to extend the validity of the five projects’ SAROs as early as November last year. He is optimistic that the DBM would grant their request.

The DND will pursue the post-qualification process for the 81 mm mortar and ammunition project pending the approval of its request to revalidate the SARO.

“We want to fast-track the purchase of the mortar and ammunition since these are being used by the Army for its operations,” Boac said.

The post-qualification, which seeks to determine if the supplier is capable of undertaking the project, would require travel to Israel, Serbia, and Bosnia, where the manufacturers are based. – Marvin Sy