Gov't starts bidding out P450M driver's license contract

MANILA, Philippines - The Department of Transportation and Communications (DOTC) and the Land Transportation Office (LTO) on Thursday began the bidding of the P450 million driver's license cards contract following the recent shortage of the cards at various offices nationwide.

 

The government agencies said the project aims to stabilize supply of the cards by third quarter of year. 

 

Prospective bidders may begin purchasing bid documents, as bid submission and opening is set on April 20. 

 

The bid for each piece of license card should not exceed P 90.09. The winning supplier will be required to deliver the goods within 30 calendar days from issuance of the Notice to Proceed, which is targeted in July 2015.

  

The DOTC said it hopes the project will not be stopped by court orders, given the urgent need for license card supplies.

 

The current supplier, Amalgamated Motors Philippines, Inc. (AMPI), was awarded a five-year contract way back in 1984. 

 

Upon its expiration in 1989, government extended the arrangement on a yearly basis until 2006. Since 2006, there has been no contractual relationship, but government has continued paying AMPI on a quantum meruit basis, or in sums equivalent to the goods delivered.

 

Seeing the need for a proper contract as a matter of good governance, the DOTC and the LTO sought to bid the project out in December 2010. This, however, was prevented by an injunction order issued by the Quezon City Regional Trial Court in February 2011.

 

Another injunction order was again issued by the same court in June 2012, in a case AMPI filed against the DOTC to question the bid. The Court of Appeals eventually lifted both injunctive writs.

 

In 2014, the Commission on Audit also disallowed further payments to AMPI without a valid contract procured under applicable rules. This bolstered the DOTC and LTO’s position that the project should be bid out, contrary to potential attempts to stop the project through court issuances.

 

With the shortage in AMPI’s license card supply, the LTO was forced to issue temporary driver’s licenses with a 150-day validity period, with the expectation that AMPI would be able to provide license cards within that period.

 

With the continuous shortage, however, the LTO removed the 150-day limit until the shortage is addressed.