‘Nothing irregular in DOTC move’

MANILA, Philippines - There was nothing irregular in the splitting into two “lots” of the government’s license plate standardization program and there was no favored bidder in the project, according to an official of the Department of Transportation and Communications (DOTC).

Lawyer Michael Arthur Sagcal, spokesman for the DOTC, said the agency’s move to divide the contract into two lots was prompted by the manifestations of bidders during the pre-bid conference that none of them would be able to meet the required minimum amount of a similar previous contract if the project were bid out as a single lot.

“I deny categorically that the division into two lots was done to favor any bidder,” Sagcal told The STAR in an interview.

“In order to foster competitive bids, the DOTC decided to bid it out in two lots. This is permitted by the Procurement Law (Republic Act 9184),” he said.

According to Sagcal, the DOTC did not accede to the demand of Marianing and Sons Development Corp. for a re-advertisement of the terms of the bid contract because “both BAC (Bids and Awards Committee) and the GPPB (Government Procurement Policy Board) have made the opinion there was no need for it.”

He said the Government Procurement Policy Board Resolution 07-2005, which is being cited by lawyer Leo Romero, counsel for Marianing and Sons, governs instances where there is a change in a project’s approved budget for the contract or ABC. 

“In this project, there was no change in the ABC. The ABC remained the same, since only the number of lots was revised. In other words, the amount allocated for motor vehicle plates remained the same, and the amount allocated for motorcycle plates likewise remained the same,” Sagcal said.

With regard to Romero’s allegation that the Dutch firm JKG was financially incapable of undertaking the project, Sagcal said, “That allegation refers to a completely different company, named H3 B.V. Goes (or ‘H3’). The Dutch company, which participated in this bid, on the other hand, is J. Knieriem B.V. Goes (or ‘JKG’).”

“Based on the documents submitted by JKG, as well as the evaluation performed by the DOTC’s Bids and Awards Committee, it meets our financial capability requirements. While JKG appears to be a subsidiary of H3, H3 did not participate in the bidding out of this project. What matters is that the company which took part in this bid, JKG, met that particular requirement, which is what RA 9184 requires,” Sagcal said.

He said the DOTC intends to award the contract to JKG within the month, adding that the project’s implementation had long been delayed.

“We might be able to award it even next week,” he said.

“We’d like to emphasize that the DOTC will not allow any unnecessary delays to the delivery of this essential service to the public, as long as we continue to follow what is right under the law. In the end, it is the public who will suffer if baseless allegations are allowed to derail this process,” Sagcal said.

The DOTC official said their BAC had made sure the agency had “complied with RA 9184 every step of the way.”

“The DOTC remains committed to an open, fair, and transparent bidding process as we modernize our transportation systems and deliver reliable, efficient, and safe services to the people,” Sagcal said.