DND scraps bidding for acquisition of six attack helicopters

By Ronron
January 25, 2008

Defense Secretary Gilberto Teodoro, Jr. has scrapped the bidding for the acquisition of six night-capable attack helicopters (NCAH) worth over P1.2 billion from a private company, officials said Friday.

In a January 24, 2008 memorandum distributed to the media yesterday, Teodoro declared the bidding process that favored Asian Aerospace Corporation “null and void” due to the company’s failure in meeting the technical specification required of the helicopter that is needed, and the failure in strictly following the bidding procedures.

Quoting the report of an Investigating Committee, headed by Defense Undersecretary Ariston delos Reyes, Teodoro said AAC claimed during the bidding in September last year that its MD530F attack helicopter meets the 3,000-pound minimum payload requirement, when it actually cannot.

The Committee said they found the AAC’s inability to meet the minimum payload requirement from a previous communication of an AAC officer to the chairman of the Department of National Defense Bids and Awards Committee (DND-BAC), Defense Assistant Secretary Roberto Nuqui, and from the performance specifications of the MD530F helicopter posted on the website of McDonnell Douglas, the manufacturer of said chopper.

Also, the committee discovered that the proposed bid of the AAC was “highly excessive” than the actual rate of every helicopter because in January last year, the said company offered to sell 12 units of said chopper for about the same price as the one proposed later for six units.

“(AAC) submitted a bid amounting to P1,203,619,974.07 for the six NCAH’s. Yet, (AAC) previously offered to sell to the government 12 MD530F attack helicopters for approximately the same price. Thus, the bid price submitted by (AAC) was excessive and disadvantageous to the DND-AFP,” the committee said.

As to the violation of the bidding procedures, the committee specifically point out the “deficiencies in the post-qualification conducted.”

The committee said that the post-qualification team sent to the United States to verify whether or not the MD530F helicopter complies with the technical requirements for the NCAH did not actually test fly the said chopper with at least a 3,000-pound load.

“Neither did the post-qualification team secure documents and manuals which would establish that the MD530F helicopter meets the 3,000-pound minimum payload requirement,” it said.

Thus, based on said findings, Teodoro ordered the rejection of the bid of AAC and declared a failure of bidding.

He said the DND BAC is directed to find out the administrative and criminal liability of AAC, particularly under Republic Act 9184 or the Government Procurement Law.

But the Investigating Committee is also tasked to look into the possible liabilities of the DND-BAC members before the Presidential Anti-Graft Commission and the Office of the Ombudsman, among others.

Delos Reyes said a new bidding will have to be called by the department in the coming months, but it is not yet sure if AAC will already be banned from participating./DMS