Another supplier files protest against bidding

By Kit Bagaipo
Another disenfranchised supplier filed a protest at the Bids and Awards Committee (BAC) and the Sangguniang Panlalawigan (SP) yesterday in connection with the questioned P168-million bidding for the purcahse of brand new fleet of heavy equipment.
In the face of denials by BAC chair Engr. Rosalinda Yu and a finding by Provincial Legal Officer Atty. Handel Lagunay that there is no basis on allegations of a rigged bidding, Cebu-based Pasajero Motors Corp. (Pamocor) complained it was wrongly disqualified in the bidding.
This despite having submitted the lowest calculated bid for the supply of 10 units of dump-trucks with an approved budget of the contract (ABC) of P40,800,000 among three declared eligible bidders.
Last February 18, Yu informed Pamocor through a letter that its bid failed the post qualification process on the ground that the submitted "experience of relevant/similar projects do not conform with a value of at least 50-percent of the ABC" which is P20,400,000.
In its letter to the BAC, Pamocor noted that in the Invitation to Apply for Eligibility and to Bid (IAEB) that appeared in at least three publications, it was cited that "Prospective bidders should have experienced in undertaking a similar project within the last 5 years with an amount of at least 50-percent of the proposed project for bidding."
According to Pamocor, the bid documents issued and the recent letter of the BAC notifying Pamocor of its failure to pass the post qualification process "uniformly used the phrase 'experienced in undertaking a similar project'".
The supplier added that there was no instance that the term "largest single contract" was mentioned in the said communications.
With the absence of such specification, Pamocor argued that this indicates the "unqualified intention of the BAC to entertain and admit aggregate similar contracts costing at least 50-percent of the ABC", and not only of a largest single contract.
Pamocor said what was published and made known to the public should be observed and followed, or else, the intention of achieving transparency in the public bidding will be defeated.
Pamocor claims it has submitted a list of similar projects it had previously undertaken costing more than the required 50-percent of the ABC.
The supplier likewise informed the BAC of an amendment on the rule issued by the Government Procurement Policy Board (GPPB) which states that when a failure of bidding has resulted because no single bidder has complied with the said requirement, or imposing the same will likely result to a monopoly that will defeat the purpose of public bidding, the procuring entity may qualify a prospective bidder that has qualified at least three similar contracts, with the aggregate contract amounting to at least 50-percent of the ABC.
During the post qualification of bids, the BAC concluded that three items out of the 8 heavy equipment bid out failed. This included the bidding for 2 units of backhoe/hydraulic excavator with breaker with an ABC of P16,236,000; 2 units of bulldozers with ripper with an ABC of P36,372,000; and 10 units of dumptrucks with an ABC of P40,800,000.
The BAC also revealed that four suppliers already passed on the four items bidded out.
The qualifying bidders include JVF Commercial (Quezon City) to supply 4 units of brand new articulated motor road grader with an approved budget for contract (ABC) of P34,000,000; Civic Merchandising (Mandaue City) to supply 4 units of brand new road roller/vibratory compactor with an approved budget of P14,432,000; Isuzu Cebu Inc. (Mandaue City) to supply a brand new 6-wheeler water truck with pump with an approved budget of P4,720,000; and RDAK Transport Equipment (Cebu City) to supply a brand new 6-wheeler fuel tanker with pump.
The BAC will conduct "further post qualification" proceeding on the tendered bid of JVF Commercial to supply 2 units of brand new payloader with an ABC of P17,136,000 in order to conduct "technical inspection and testing" of Holland, the firm's offered brand.
According to Pamocor, the rule's amendment should be observed by the BAC and award the supply for 10 dump trucks to them.
OTHER LAPSES
Lawyer Salvador Grupo, who represents protesting Japanese heavy equipment dealer Kowa Tsusho Ltd., said Capitol's denial of a rigged bidding based on findings by Atty. Lagunay is "just a mere scrap of paper" as this was meant for review of the governor.
According to Grupo, the BAC's admission that two suppliers obtained bid documents while Kowa Tsusho did not, only heightened suspicions that there were indeed favored contractors.
He said the presence during the bidding process representatives of the Commission on Audit, a non-government organization and the Bohol Chamber of Commerce and Industry was also not observed by the BAC.
In a letter to Board Member Bienvenido Molina, Grupo urged the SP to "take appropriate action, including a formal investigation" into the proceedings of the heavy equipment bidding.