Gov’t warned against bidding out LTO contract

The company that currently holds the contract to supply information technology to the Land Transportation Office (LTO) has warned the government against prematurely bidding out a new multibillion-peso contract lest it be cited for violation of the country’s procurement laws.

In a statement, Stradcom Corp. reiterated that a provision in its existing contract with the LTO gave it the option to renew.

Likewise, Stradcom said, the Department of Transportation and Communications (DOTC) still needed to get the approval of the National Economic and Development Authority’s Investment Coordination Committee (Neda-ICC) before proposals from bidders could be entertained.

“The LTO has been hell-bent on bidding out the Stradcom contract since (last year) but Stradcom’s contract expires in 2013,” the company said on Thursday.

Earlier this month, the DOTC published a call for interested contractors to submit proposals for a new IT contract for the LTO.

“The renewal clause in our contract is very specific. Therefore, if Stradcom offers any proposal to renew, it should not be unjustly denied,” Stradcom president Cezar Quiambao said.

He said that given the amount of money Stradcom had spent—over $100 million (P4 billion to P5 billion) over the last decade—getting a new contractor who would have to replace all the equipment owned by Stradcom would be highly “disadvantageous” to the government.

“Now why would the government spend unnecessarily when they could talk to us? We are willing to negotiate and to enhance our systems,” Quiambao said.

Sought for comment, Neda Director General Cayetano Paderanga said he was not aware of a new bidding for the IT contract.

The DOTC, for its part, clarified that although preparations were being made for a new IT contract, no formal bidding had started.