DND to try alternative form of procurement for 21 Hueys

MANILA, Philippines - The Department of National Defense (DND) will resort to an alternative form of procurement to acquire 21 UH-1 helicopters worth P1.26 billion after the third bidding for the project failed.

Defense Undersecretary Fernando Manalo told The STAR the alternative procurement would be similar to public bidding but without the publication requirements.

Under public bidding, state agencies are required to publish a bid notice in nationally-circulated newspapers.

Defense Secretary Voltaire Gazmin approved the acquisition of the helicopters through alternative mode late last month.

Defense Assistant Secretary Patrick Velez said a minimum of three companies would be invited to submit bids. Security officials would then examine the offers to determine which of these are the most advantageous to the government. The submission of offers may be held within the month.

Section 53 of the implementing rules of the procurement law allows government agencies to use negotiated procurement when there has been a failure of public bidding for the second time.

Negotiated procurement was defined as “a method of procurement of goods, infrastructure projects and consulting services, whereby the procuring entity directly negotiates a contract with a technically, legally and financially capable supplier, contractor or consultant.”

But Manalo said the DND would not use the word “negotiation” for the helicopter project.

“Actually, it’s also bidding but we go directly to the suppliers. Sometimes, when you say negotiation, it refers to negotiations with one supplier. In this case, it is also bidding because we won’t negotiate with just one supplier,” Manalo explained.

Time is not on the side of the DND as the budget for the project is scheduled to expire in December. If the DND fails to acquire the helicopters before the funding lapses, it will have to again request for outlay from the budget department.

The government aims to acquire 21 UH-1 or Huey helicopters to improve the capabilities of the Air Force. The helicopters are seen to provide much-needed air mobility to troops involved in security operations.

The helicopters were originally intended to perform poll duties last May but the acquisition has been delayed by failed biddings.

The first and second biddings were held last December and February, respectively, but the bidders did not meet some requirements set by the defense department.

The third bidding was held last month but it also failed after the lone bidder, the joint venture of Rice Aircraft Services Inc. and Eagle Copters Ltd., failed to satisfy documentary requirements.