Firm’s disqualification from MRT-3 bidding hit

GERMAN-FILIPINO venture Schunk Bahn und-Industrietechnik-Comm Builders & Technology Philippines (SBI-CBT) has appealed the decision of the Department of Transportation and Communications to disqualify it from bidding for the three-year, P4.25-billion maintenance contract for the busy Metro Rail Transit Line 3.

The appeal also comes as the group’s Filipino representative Roehl Bacar cited its “frustration” as well as various “inconsistencies” in dealing with the DOTC’s negotiating panel for the contract, which aims to address issues at the congested and glitch-prone elevated train system running along Edsa.

SBI-CBT was disqualified for submitting its compliance documents past 10 a.m. on the deadline last Oct. 28.

However, Bacar said no specific time on that day had been set by the DOTC negotiating team.

In an appeal letter dated Oct. 30, Bacar said “the negotiating team as well as the offerors have not fixed nor discussed the time for the submission of the compliance documents on Oct. 28.”

“Hence, Negotiation Bulletin No. 2015-10 is not binding considering that it is clearly a unilateral declaration and therefore could not be enforced against SBI-CB&T and/or the party or parties who had not given their assent neither consented thereto specially that the rights of SBI-CB&T were prejudiced by such fixing of time for the submission of compliance documents,” Bacar said in the letter.

The letter also added that the DOTC did not say that “any submissions made beyond 10 a.m. shall not be accepted.”

A DOTC spokesperson could not immediately respond to a request for comment.

Bacar noted that the decision by the DOTC means just one group, Korean-led Busan Transport Corp.-Edison Construction & Development Corp.-Tramat Mercantile-TMI Corp.-Castan Corp., would be considered for eligibility.

Another group led by a unit of the Consunji family’s DMCI Holdings Inc. was reportedly disqualified.

Bacar said the rejection of his group’s offer to undertake the MRT major rehabilitation project would deprive the government of a “great offer.”

He noted the consortium would offer access to vital original equipment and parts right from the Czech Republic firm that originally built the MRT trains, CKD-Tatra, which is now SKD Trade A.S. Comm Builders & Technology Philippines, which Bacar heads as president and CEO, forged a cooperation deal with SK Trade A.S. last month.

The DOTC launched the bidding for the MRT-3 maintenance contract after the Government Procurement Policy Board approved the resort to this negotiated mode of procurement last Aug. 20. The DOTC said there was an urgent need to address the railway’s maintenance requirements.

The DOTC, in the meantime, has adopted the existing six-month multidiscipline approach, wherein different maintenance contractors have been engaged for each of the seven components of the railway line.

The new long-term maintenance provider will assume the seven multidiscipline contractors when their services expire in January 2016.