LTO sets bidding for IT contract

MANILA, Philippines—The Department of Transportation and Communications (DoTC) has started the bidding process for the Land Transportation Office’s (LTO) multi-billion peso information technology contract to replace controversial tech firm Stradcom Corp.

The deadline for the submission of proposals was set for January 20. The DoTC on Friday released preliminary information that companies could use in preparing their bids.

“The LTO-Infrastructure and Information System will process motor vehicle registrations, renewal and application of drivers’ licenses and permits, apprehensions, back-end transactions and such other ancillary transactions/processes,” the DoTC said in a paper.

Bidders must submit offers to set up an IT system that would cover 301 offices composed of a central office, regional offices, district offices, extension offices and drivers’ license renewal centers nationwide.

The winning bidder will get a contract to build and operate the LTO’s IT facilities for about seven years. Bidders were also given a chance to make a presentation of their proposals later this month. The original date for presentation was January 23, but the day was declared a holiday in celebration of the Chinese Lunar New Year.

The winning bidder will be required to set up two data centers that will run 24 hours a day, seven days a week, “using robust, scalable and reliable servers, redundant power supplies, controlled environment, security features and access and monitoring cameras.”

In 2010, the LTO recorded 17.7 million transactions. Half of these were motor-vehicles registrations. Nearly six million were for the issuance of licenses and permits, while the remaining 800,000 involved apprehensions of road rule violators.

The contractor must also deliver 3,000 desktop computers, with all the accompanying legal software, to be distributed to all LTO offices nationwide.

The new systems must have the capability to link up with other government agencies such as the Land Transportation Franchising and Regulatory Board, the National Statistics Office and Bureau of Customs.

Links to private sector stakeholders like drug test centers, driving schools, car importers and manufacturers, and insurance companies must also be possible.

In 1997, Stradcom Corp. won the 15-year contract to modernize the LTO’s systems at no cost to the government.

Since the computerization of its systems, the LTO’s operations have improved significantly, allowing the agency to issue licenses and vehicle registrations on the same day of applying.

However, Stradcom has not been without its problems. It has been involved in several controversial deals, including a plan to issue radio frequency identification tags to all vehicles in the country.

The plan was stopped by the Supreme Court in January 2010, saying the project did not go through the proper bidding process.