Laoag BAC stands by disqualification of losing bidder for vehicle purchase

Laoag City—The Laoag City government’s Bids and Awards Committee (BAC) has stood by its disqualification of Northpoint Alliance Motors Corporation (NAMCO), the losing bidder in the city government’s PHP92-million procurement of 80 vehicles, despite the company’s protest.

In its letter addressed to Laoag Vice Mayor Rey Carlos Farinas, NAMCO said it was disqualified without its sealed bid being opened, allegedly on the ground that one of its owners is a provincial board member. The company argued that the official does not directly or indirectly influence the decisions and funding of Laoag City. NAMCO also questioned the BAC’s specifications, saying they appeared tailor-made for a particular brand and that the winning bidder failed to meet three requirements, which it said should have resulted in a failed bidding. It added that the winning bid amounted to PHP91.16 million, compared with NAMCO’s PHP83.98 million offer, or a difference of PHP7.18 million that it said could have been used for other city projects.

NAMCO also raised concern over the lack of accessible service centers within the city and the absence of what it described as clear warranty accreditation from the supplier. It said the winning brand, Isuzu, has only temporary service centers in the province. In its protest, the company questioned what it described as an expensive procurement, tailor-made bid specifications, lack of proper service support and what it called a groundless disqualification. NAMCO said it hoped the issue would be resolved fairly and in good faith by city officials.

The protest letter was raised during the vice mayor’s time as Sangguniang Panlungsod presiding officer and was referred to the committees on Human Rights, Ways and Means, and Good Governance. Laoag Councilor Donald Nicolas later read the BAC’s reply during the session.

According to the BAC, NAMCO was disqualified on two grounds. First, it said the company failed to comply with Section 81 of Republic Act No. 12009, which requires bidders to disclose their ultimate beneficial ownership. The BAC said NAMCO’s certification listed only Joanabee C. Ng, who holds a 25-percent interest in the corporation, while the rest of the stockholders reflected in the company’s General Information Sheet were not declared. The BAC said this was a ground for automatic disqualification under procurement rules.

The BAC also said that one of NAMCO’s controlling stockholders and its president is Sangguniang Panlalawigan member Johanson Chua, who holds an elective position and is considered a beneficial owner. It said this creates a situation covered by Section 89 of the Local Government Code, which prohibits local officials and employees from directly or indirectly engaging in business transactions with the local government unit they serve or supervise.

On the issue of the bid specifications, the BAC said the vehicle requirements were within the allowable limits set by the Department of Budget and Management. While the DBM prescribes that diesel-fed vehicles should not exceed 3,000 cc, the city’s requirement of 2,400 to 2,800 cc remained well within the limit, it said.

The BAC dismissed NAMCO’s claim about supposed savings from the lower bid, saying the company was already disqualified at the technical stage and therefore its bid no longer had to be opened. On the issue of service centers, the BAC said the winning bidder’s after-sales requirements include a 100,000-kilometer or three-year warranty, preventive maintenance service labor for the first 1,000 and 5,000 kilometers, one-year comprehensive insurance, and three years of registration with TPI.

The BAC also said NAMCO should have filed a motion for reconsideration within three calendar days from receipt of written notice if it wanted to challenge the decision. It added that the company’s letter was insufficient in form and substance because it did not clearly state that it was asking for reconsideration of the disqualification.

The BAC said it is following the provisions of RA 12009 strictly and will continue to act in the best interest of Laoag City, in a response signed by BAC Chairman Atty. Ed Von Alan F. Cid and other officials.