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May 8, 2013
LTO also moves to blacklist existing supplier for violating contractual obligations
Manila, Philippines – The Department of Transportation and Communications (DOTC) and the Land Transportation Office (LTO) have completed the opening of bids for the much-awaited Motor Vehicle License Plates Supply Project, in marathon sessions spanning two (2) full days of work by the DOTC/LTO Bids and Awards Committee (BAC) from May 6-7, 2013.
After examining the eligibility documents and technical proposals submitted by 8 interested groups, only two were found eligible:
The joint venture of the Netherlands’ J. Knieriem B.V. Goes or ‘JKG,’ and local company Power Plates Development Concepts, Inc.; and
The joint venture of Spain’s Industrias Samart and local company Datatrail Corporation.
As the only eligible bidders, their financial proposals were then opened to reveal that the JKG-Power Plates group made the lowest offers for both Lots 1 and 2 (Motor Vehicle or ‘MV’ License Plates and Motorcycle or ‘MC’ License Plates, respectively).
For Lot 1, JKG-Power Plates proposed to supply the MV plates for a total of P 1.98-Billion, while Industrias Samart-Datatrail offered it at P 2.03-Billion. The ceiling price for Lot 1 bids was fixed at P 2.356-Billion.
For Lot 2, JKG-Power Plates proposed to supply the MC plates for a total of P 1.196-Billion, while Industrias Samart-Datatrail offered it at P 1.275-Billion. The maximum bids allowed for Lot 2 was P 1.495-Billion.
"Pursuant to RA 9184 [the Procurement Law], the DOTC/LTO BAC will now conduct a detailed evaluation of the financial proposals to determine the correctness and completeness of the eligible bidders’ calculations. Based on those results, we will declare the lowest calculated bidder, who will then undergo post-qualification," the Transport Department explained.
"As to the ineligible groups, the law mandates the use of non-discretionary pass/fail criteria during bid opening," it added. "We could only determine whether the required documents were present or absent in the submissions. Where any requirement was absent, we had no choice but to declare ineligibility."
The 6 ineligible joint venture groups were:
RNA Holdings, Inc. (Philippines) and Utal Sp. Z o.o (Poland), due to the absence of financial statements and a valid credit line certificate, and there was no conformity with the delivery schedule and technical specifications expressed;
Kolonwel Trading (Philippines) and Shanghai Fa Yu Industrial Co., Ltd. (China), because of the absence of a valid Mayor’s permit and non-compliance with a technical specification;
Utsch-Fereira (Phils.) Corporation (Philippines) and Utsch A.G. (Germany), since there was no conformity with the delivery schedule and due to its submission of a non-compliant lock washer;
Uniforbes, Inc. (Philippines) and EHA Hoffman International Gmbh (Germany), due to the absence of a valid Mayor’s permit and their conformity with the delivery schedule, among other missing documents;
DVK Philippines Enterprises (Philippines) and Jinjiang Hesheng Light (China), because a valid certificate of reciprocity was absent and it failed to comply with the sample requirement; and
Proact Philippines, Inc. (Philippines), since it also did not submit a certificate of reciprocity.
In a related development, the LTO has blacklisted motorcycle plates embosser GJB Enterprises, Inc. from all government bids for a one (1)-year period, in view of its failure to deliver on its obligations to government.
An April 26, 2013 Decision signed by Assistant Secretary Virginia P. Torres cites the implementing rules of RA 9184 and its Uniform Guidelines for Blacklisting, saying that "failure by a contractor to fully and faithfully comply with its contractual obligations without valid cause calls for the imposition of administrative penalty of suspension for one (1) year from participating in the public bidding process."
This Decision was prompted by the recommendation of the LTO BAC. In Resolution No. BAC-017-2013 dated April 16, 2013, it recounted that GJB Enterprises failed to answer a March 10, 2013 Show-Cause Order which required it to explain its failure to deliver aluminum sheeting materials to the LTO, in violation of its 2011 contractual obligations.
"LTO’s move to blacklist this errant supplier is in line with our procurement reform program and in response to the same recommendation made by the Commission on Audit," the DOTC explained. "It should send a clear message to all bidders and contractors that government will not tolerate their failure to meet their obligations, especially when they prejudice public interest."
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