DOTC/LTO procures Stradcom services until new LTO-IT system provider is determined

A February 8, 2013, press release from the Department of Transportation and Communications 

To ensure the continuity and non-disruption of services to the public, the Department of Transportation and Communications’ (DOTC) Bids and Awards Committee (BAC) today said it was procuring the services of the current LTO-IT system provider Stradcom Corp. while the evaluation process for the procurement of a new contractor is still underway.

The contract with Stradcom expires on February 10.

“Inasmuch as the bidding process for the DOTC Road IT Infrastructure Project has not yet been completed and a new service provider has not yet been determined, it is absolutely essential in the interest of public service that the services be uninterrupted until such time that a new service provider is in the position to provide the service,” the DOTC said.

The DOTC had set the bidding process for the new LTO-IT system in time for its February 10 deadline, but the bidding for a new P8.2-billion LTO-IT system was delayed by several months when a Quezon City court issued a Temporary Restraining Order (TRO) against it. It was only when the Court of Appeals favored the argument of the DOTC when the TRO was set aside and the bidding was able to proceed.

“In view thereof, it is in the best interest of the public that Stradcom shall continue in the meantime, to render the services pursuant to the terms and conditions as set at in the agreement under emergency interim contract negotiated pursuant to RA 9184,” the DOTC said.

The extension of Stradcom services was entered into by the DOTC as an emergency procurement under the provisions of Republic Act 9184 or the Government Procurement Reform Act.

“After assessing the current situation, we have decided to procure the services of Stradcom for eight months in order not to disrupt the automated system now being used by LTO and avoid reverting into manual operation,” Undersecretary Jose Perpetuo Lotilla, Chairman of the DOTC’s BAC, said. “However, this contract can be terminated sooner at the discretion of the DOTC depending on how soon the new system provider can take over.”

Meanwhile, the DOTC has informed Digitext Asia Corp., the lowest bidder for the new LTO-IT system, that it failed in the post-qualification process.

Among the reasons for its disqualification were the lack of valid mayor’s permit for year 2012 and non-submission of bill of quantities of items proposed.

“Because of the exacting requirement of RA 9184, the BAC has no choice except to conclude that it failed in the post-qualification,” Usec Lotilla said.

The DOTC-BAC has likewise informed the next lowest bidder Fritz & Macziol that its bid is now being considered under post-qualification process, and instructed Fritz & Macziol to immediately submit the required documents.

The new LTO-IT system aims to provide a viable and long-term solution to address the current system’s issues.  The LTO-IT system is no longer responsive to current land transportation regulation requirements.

Aside from correcting the flaws of the current system, it will result in LTO earning approximately an additional P2 billion a year since all computer fees will accrue to the government.

It will also make it easier for authorities to recover stolen vehicles, trace smuggled vehicles, prevent double registration, and monitor unregistered vehicles.

When it finally interlinks with the automation system of the Land Transportation Franchising and Regulatory Board (LTFRB), the government will be able to eliminate cases of PUVs securing an LTFRB franchise without LTO registration, as well as PUVs that are registered with the LTO but have no LTFRB franchise.

dotc.gov.ph

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