ILIASCO assails PPA ruling on arrastre services bidding
Iloilo Integrated Arrastre Services Corporation (Iliasco) has questioned the resolution of the Bids and Awards Committee (BAC) of the Philippine Ports Authority (PPA) rating them as the third highest bidder in the contract to provide cargo handling services at the Iloilo River Wharf.
BAC in a resolution dated January 21, 2008 stated that Iliasco got the third highest bid while the two other bidders, namely, Prudential Customs Brokerage Services, Inc. (PCBSI) and Filipinas Ports Services (FPS) "got a tie score in the highest bids."
Iliasco, through its President and Chief Executive Officer Atty. Gerson Espinosa Sr., has filed a Motion for Reconsideration claiming that they have submitted the most advantageous offer to the government. It has also reiterated its earlier position that bidders who did not submit Mayor's Permit issued by the City of Iloilo should be rated as "ineligible."
Espinosa claimed that the BAC did not follow certain provisions of the "Compendium of Regulations on Cargo Handling Operations", PPA's bible for the conduct of public biddings, as regards their bid evaluation.
He said the BAC did not assign numerical points for the factors determined and established for the Technical and Financial Proposals as provided for under Number 36 of the Compendium.
As a result of said failure the bidders (were) not aware of the corresponding numerical points on each factor or criteria.
"It is quite surprising that the BAC just unilaterally declare that a particular bidder was rated higher than the others. The should have at least presented a clear-cut criteria for their evaluation... This is also in line with the sacred principle of 'transparency' in the conduct of public biddings," Espinosa said, adding "the conduct of public biddings must not only be transparent but must be clear and unambiguous so that the evaluation process therefor should not provide any undetermined discretion on the members of the BAC which may be subject to abuse, discrimination and favoritism."
Further, Espinosa claimed that Iliasco's offer was the most advantageous to the government as it offered to remit or pay a higher amount of government share for the duration of the contract compared with that of PCBSI and the FPS.
Iliasco, who offered a reduced percentage of 15% of the baseline revenue per ton, would remit a total government share of P5.12 while PCBSI who has a 20% offer would remit only a government share of P4.82.
"This is basic in all government procurements, that all contracts entered into by the government should be evaluated for its due advantage. Otherwise, public officials who would enter into contracts grossly disadvantageous to the government would be held liable for violation of Section 3 paragraph g of Republic Act No. 3019 otherwise known as "The Anti-graft and Corrupt Practices Act," Espinosa stressed.
Meanwhile, Espinosa in the same motion for reconsideration reiterated their position contained in a letter dated October 1, 2007 addressed to BAC chair Port District Office Manager Raul Santos that PCBSI and FPS should have been marked "ineligible" as both did not submit Mayor's Permit issued by the City of Iloilo.
PCBSI submitted a Mayor's Permit issued by the city government of Makati while FPS submitted a Mayor's Permit issued by the city government of Davao.
Espinosa cited PPA Order No. 01-2006 dated April 12, 2006 stating that "what is required is a valid and current Mayor's Permit / municipal license or in its absence, proof of tender of payment of local fees..."
Iliasco, which had previously operated cargo handling services in the Iloilo River Wharf, has maintained a clean and solid reputation as a foremost arrastre services company in the Visayas since its inception way back in 1975. It presently operates cargo handling services at the Fort San Pedro area.