Court orders DoTC to halt P8B LTO bid process

A Quezon City court has issued a temporary restraining order (RTO) to compel the Department of Transportation and Communications (DoTC) to stop its search for a new information technology (IT) systems provider for the Land Transportation Office (LTO).

The order was issued after the LTO’s supplier of drivers’ licenses—Amalgamated Motors Philippines Inc. (Ampi)—filed a petition urging the court to stop the DoTC from evaluating submitted bids on June 6.

Transportation Secretary Manuel “Mar” Roxas II on Thursday said that, although the department respects the TRO, it would oppose the supplier “vigorously” through the Office of the Solicitor General.

“We believe [Ampi’s case] is meritless,” Roxas said, describing the TRO as misapplied. “We will seek an early resolution to this case.”

Roxas earlier issued DoTC Special Order No. 2011-18 initiating a public bidding for a new LTO information technology infrastructure and systems contract worth P8 billion.

The new LTO-IT contract aims to establish a computer system that will handle the LTO’s record keeping and data management, replacing the existing infrastructure put in place by Stradcom Corp., the LTO’s current IT provider.

Unlike the deal with Stradcom, which retained ownership of all computers and storage facilities used by the LTO, the new contract will allow the government to keep all the purchased equipment.

The new contractor must deliver 3,000 desktop computers, with all the accompanying and legally licensed 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.

Also, the IT provider must enable links with private-sector stakeholders, like drug test centers, driving schools, car importers and manufacturers, and insurance companies.

It was not the first time the DoTC encountered opposition on its plan to bid out the IT contract.

The group of Bonifacio Sumbilla earlier filed a petition questioning the validity of the DoTC’s special order. But Transportation Undersecretary Jose Perpetuo Lotilla said the Sumbilla petition was later thrown out by the court.