Proofs of Concept Presented for P 3.4 B LTO Bid

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Proofs of concept for the P 3.4-Billion Road Transportation Information Technology Infrastructure (LTO Component) Project of the Department of Transportation and Communications (DOTC) – otherwise known as the LTO IT Project – were presented by three (3) remaining bidders last week, giving a peek into much-improved services at the Land Transportation Office (LTO) beginning in the third quarter of 2015.

“This project aims to make dealing with the LTO more convenient and efficient for the public. Unnecessary steps will be cut out, online transactions will be enabled, and human intervention will be minimized in order to curb corrupt practices,” said DOTC Secretary Joseph Abaya.


Project Scope: Software and Data Center Components Only

The current bid uses the two (2)-stage bidding procedure under the procurement law and its implementing rules. Its scope covers only the software and data center components of the P 8.2 Billion LTO IT project originally bid out in 2012.

Following that bid’s failure due to the inability of bidders to satisfy its broad project scope, the DOTC decided to separate the components into two (2) separate bids, to make it more feasible for interested groups.

Meanwhile, the components for the nationwide roll-out, including hardware requirements, will be opened for bidding after the current bid’s contract is awarded.


First Stage Results

At the May 30 bid submission for the first stage where nine (9) groups participated, two (2) firms were declared eligible by the DOTC’s Bids and Awards Committee (BAC), using the non-discretionary “pass/fail” criterion mandated by the procurement law. These are:

The Joint Venture of Kaisa Consulting Company, Inc. – FPT Information Systems Corporation – NTT Data Corporation; and The Indra Sistemas S.A. – Metro Pacific Tollways Corporation Joint Venture.

The seven (7) other groups were declared ineligible for failure to comply with various requirements of the procurement law and bidding rules. These were:

The Avesco Marketing Corporation-Sung Gwang Co., Ltd. Joint Venture; The Joint Venture of Omniprime Marketing and Heitech Padu Berhad;The Strategic Planning, Applied Management Konsult, Inc. and Accesos Holograficos SS de CV Joint Venture;Infotech Global Pte. Ltd.-Infotech Private Limited Joint Venture;The Oberthur Technologies-Comfac Corporation Joint Venture;The NPMI-NEC Joint Venture; andThe Joint Venture of DVK Philippines Enterprises and Leidos Holdings, Inc.

The Avesco-Sung Gwang JV was later declared eligible after the BAC granted its motion for reconsideration.

The BAC and its TWG are carefully studying all the proposals and submissions of the bidders in order to determine which bids are responsive to all requirements under the law and of the DOTC-LTO.

All remaining issues raised in the requests for reconsideration filed by non-complying bidders will be deliberated upon and resolved by the BAC in accordance with law.

One-on-one meetings will soon be held with the eligible bidders to finalize the project’s specifications. A pre-bid conference will then be held to discuss the final technical specifications of the project with the bidders.


Proofs of Concept

The three (3) remaining firms presented their respective Proofs of Concept (POC) for the Driver’s Licensing System and Motor Vehicle Registration System to the BAC last week to confirm their eligibility to bid for the project.

A non-discretionary “pass/fail” criterion is likewise being used in the POC evaluation, after which the project will proceed to the second stage of the bidding.


Second Stage Procedures

Bid submission of technical and financial proposals is targeted for the last week of August 2014, after which the complying bids will be evaluated and post-qualified in accordance with the procurement law.

The DOTC aims to have the entire LTO IT project fully operational by the third quarter of 2015, in order to deliver more user-friendly, convenient services to the public.


Legal Challenge

A legal suit seeking to enjoin government from proceeding with the project is now pending with the Regional Trial Court of Mandaluyong City, but the DOTC is confident that it will win the case eventually.

Trial is still being conducted to determine whether there is any merit to the suit, but no temporary restraining order (TRO) has been issued, indicating that the petitioner still has not shown basis for the court to stop the project.

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