Firm asks court to compel DOH to award project

INQUIRER FILE PHOTO

MANILA, Philippines—The winning bidder in the project to design and build the government-run Dr. Jose Fabella Memorial Hospital at its new site in Sta. Cruz, Manila, is asking the Makati Regional Trial Court to compel the Department of Health (DOH) to implement the contract it had been sitting on for more than a month.

In a 13-page petition for the issuance of a writ of mandamus, J. D. Legaspi Construction (JDLC), owned by Jesusito Legaspi, slammed Health Secretary Enrique Ona for his supposed “inaction” in the awarding of the contract to build the maternity hospital. The company qualified and won the bidding last year.

Sought for comment, Health Undersecretary Ted Herbosa said the project still needed the approval of the National Economic and Development Authority’s (Neda) Investment Coordination Committee.

“In the last meeting, the DOH was asked to revisit other modes of procurement, like a build-lease-transfer similar to public school classroom project. So no truth to inaction by the DOH. We have to follow proper processes and laws in place in government. We are still doing our feasibility studies for Neda resubmission,” said Herbosa, who is also the chair of DOH central office’s bids and awards committee (Cobac).

In June last year, health officials announced that the department was bidding out the contract to build the new hospital inside the DOH compound in Sta. Cruz, noting that the hospital is old and the land where it stood might soon be privatized.

Procurement

“The petitioner is now concerned that the procurement procedure continues to drag on since the respondent continues to violate the prescribed period,” JDLC said in its petition.

According to the construction company, it submitted its bid of P742,888,888.88 to the DOH bids committee last June 26. It was the second tender after the first was declared a failure because no bidders were qualified. Four companies, including JDLC, later submitted their proposals and were declared eligible to take part in the process.

Tokwing Construction Corp (TCC) had the lowest bid, followed by JDLC. But TCC was disqualified after it failed to comply with the postqualification evaluation done by Cobac.

Since JDLC is the second-lowest bidder, it was asked to submit additional documents for Cobac evaluation on Aug. 12, 2013. The firm submitted the papers on the same date.

Upon review, Cobac submitted a resolution on Dec. 11, 2013, recommending to Ona that JDLC be declared the winner in the tender.

JDLC told the court that the Government Procurement Reform Act (Republic Act No. 9184) required government agencies to approve the resolution of the bids and awards committee after seven calendar days. Afterward, the government agency is “duty-bound to deliver the contract,” it said.

After the mandatory period provided by the law elapsed last Dec. 13, JDLC sent letters to Cobac and Ona demanding the award of the contract.

“Both letters went unanswered,” the petitioner said, adding that it even asked the Cobac if the resolution was indeed submitted to the health secretary.

The resolution was indeed submitted last Dec. 11, according to Cobac’s reply to JDLC.

“(N)otwithstanding the lapse of more than 30 calendar days coupled with several demands from the petitioner, Ona continues to fail to award the contract to the former,” JDLC said.

The construction firm argued that the implementation rules of the procurement law oblige the government, the procuring entity, to award the contract to the winning bidder.

“This is the safeguard that [RA 9184] provides against unnecessary delays and corruption. Unfortunately, this is the same law now being violated by the respondent Department of Health through the inaction of Secretary Enrique Ona,” it said.