DND bidding for P5.98B patrol aircraft fails

MANILA, Philippines - The bidding for the supply of two long range patrol aircraft worth P5.98-billion has failed as bidders were unable to meet the requirements set by the Defense department.

The Special Bids and Awards Committee 1 (SBAC-1) declared a failed bidding after examining bid documents for almost 12 hours on Monday in Camp Aguinaldo.

Seven companies submitted offers for the project, which seeks to enhance the Philippines’ maritime domain awareness.

The aircraft manufacturers that submitted bids were EADS/CASA Airbus Defense and Space of Spain; Elta Systems Ltd. and Elbit Systems Ltd., both from Israel;  Saab Asia Pacific Co. Ltd. of Sweden; PT Dirgantara Indonesia (Persero) Indonesian Aerospace of Indonesia; Lockheed Martin and L3 Mission Integration, both from the United States.

Of the seven bidders, only Elta Systems Ltd. and Elbit Systems Ltd. met the eligibility requirements. The other bidders had deficiencies in their eligibility documents, including failure to present a list of completed contracts similar to the long range patrol acquisition project.

Elta and Elbit, however, failed to hurdle the next phase of the bidding, which involves the technical aspects of the aircraft they are offering.

“Both proponents did not include in their proposal the fast-moving items and consumables in the list of minimum deliverables,” SBAC-1 chairman Defense Undersecretary Fernando Manalo told The STAR.

The disqualified firms, however, have three days to ask the SBAC-1 to reconsider its decision declaring them ineligible to bid for the project.

The committee will take up the motions for reconsideration in a separate meeting. If none of the motions for reconsideration were granted, SBAC-1 will have to hold another bidding for the project.

A total of 10 aircraft manufacturers bought bid documents for the project, one of the biggest items in the Armed Forces Modernization Program. Three of the 10  companies – Field Aviation, Raytheon Company, and Arinc Aerospace – had expressed interest to join the bidding but did not submit offers.

Defense Assistant Secretary Patrick Velez said the long range patrol aircraft would serve as the military’s “eyes and ears” as it secures the country’s territory.

“(The project is) very important. They are your eyes and ears. They will provide the eyes and ears in the areas of our maritime domain and plug the gaps in the air surveillance capacity,” Velez said.

He said the Air Force no longer has long-range patrol aircraft in its inventory.

“Previously we had a long range patrol aircraft but along the way it was utilized for a different purpose,” Velez said, referring to the Air Force’s Fokker plane. 

The project will be funded by the Revised Armed Forces Modernization Program signed by President Aquino in 2012.

The winning bidder is required to deliver the air assets within 1,035 calendar days from the receipt of notice to proceed from the government. The notice to proceed is a document that will pave  way for the implementation of the contract.