DOTC takes over P.5-billion driver's license deal

MANILA, Philippines – The Department of Transportation and Communications (DOTC) has taken over from the Land Transportation Office (LTO) the task of holding a public bidding for the P500-million contract to supply next year’s driver’s license cards.

Sources at the LTO said agency officials were surprised by the DOTC’s creation of a special bids and awards committee (SBAC) to handle the supply, production and delivery of the driver’s license.

Sources said the takeover came about when DOTC Secretary Jose de Jesus issued Order 36 last Oct. 27, where he ordered the creation of the SBAC to be chaired by his head executive assistant, DOTC Assistant Secretary Ildefonso Patdu Jr.

He said he formed the SBAC “to erase any doubt as to the legality and fairness of the would-be outcome of the bidding for the proposed project.” 

De Jesus brushed off hints that there was anything irregular about their takeover of the bidding.

“The matter of the bidding of the driver’s license was discussed at the DOTC executive committee no less than two months ago. And... Torres was present in that meeting,” De Jesus said in a statement to transportation reporters.

In the two-page department order, De Jesus said the special committee was specifically formed to oversee the conduct of the bidding for the LTO’s P500-million supply contract for the driver’s license to be issued in 2011.

De Jesus had earlier ordered LTO chief Virginia Torres to defer the public bidding scheduled last September as a result of complaints by bidders that the terms of reference (TOR) issued by the LTO seemed to favor a particular bidder.

Torres’ directive to revert to paper-based license cards from the current plastic cards had also been questioned by bidders as well as public transport groups.

It was learned that one of the provisions of the TOR was that the driver’s licenses are to be “paper-based” and “environment-friendly.”

Another provision found to be highly irregular was certain specifications on the paper and printing requirements that tend to favor certain paper and printing suppliers.

“I asked the newly formed committee to come up with terms that are neutral and generic as to whether the material is plastic or paper, as long as the specifications meet certain performance criteria,” De Jesus said.

LTO insiders said the DOTC takeover of the bidding from Torres and the LTO reportedly indicates a rift with the LTO chief, who was reportedly “personally handpicked” by President Aquino.

Aside from Patdu, De Jesus has named DOTC Assistant Secretary George Esguerra as SBAC vice chairman. Members of the special committee are LTO executive director Redentor Reyes and directors Emil Ocfemia and Rebecca Cacatian.

De Jesus said after the SBAC is formed, “it shall immediately convene and create its technical working group that would draft, review, revise and finalize the terms of reference of the project.”

The committee is also authorized to prepare the bid documents, conduct pre-bid conference, issue bid bulletins, open bids and bid evaluation, conduct post qualification, issue notice of award, prepare and execute contract and issue notice to proceed.

The life and power of the special committee will cease once a winning bidder is finally selected, after which the LTO shall take over and ensure the proper implementation of the project, De Jesus said.