Local technology firm Digitext Asia bags LTO IT deal

The Department of Transportation and Communications (DOTC) has auctioned off and awarded the multibillion-peso supply contract for the Land Transportation Office’s (LTO) computer systems to a little-known firm.

Local tech firm Digitext Asia Corp., which submitted the lowest bid of P3.8 billion for the project, was declared winner by the DOTC’s bids and awards committee this week.

The company’s bid was less than half the P8.2-billion approved budget for the project. Digitext will replace Stradcom Corp., whose 13-year IT deal with the LTO expires in February.

According to its website, Muntinlupa-based Digitext has more than 10 years of experience in providing innovative information, communications and technology (ICT) solutions to its clients in both the public and private sectors.

“A number of our projects are Public Private Partnerships (PPP),” it claimed.

The company focuses on various areas of technology—telecommunications, IT security, e-commerce and data services.

Four other groups—Fritz and Macziol Asia, Eurolink Network International Corp., Kaisa Consulting and Ceragon Network—submitted bids for the project.

Fritz and Macziol Asia submitted the second-lowest bid at P5.3 billion, while Eurolink’s was third-lowest at P5.8 billion. The financial bids of Kaisa and Ceragon were not opened due to their failure to meet certain technical requirements.

Kaisa was considered non-compliant for lack of schedule of requirements, while Ceragon also lacked schedule of requirement and a certificate of reciprocity for a foreign consortium to qualify for the bid.

The four other companies that purchased bidding documents but did not participate in the bidding were Stradcom Corp., the current system provider of the LTO IT system, Smartmatic, Oberthur Technologies and Indra Sistemas, S.A.

“The new IT system will provide a viable and long-term solution to address the current system’s issues. The previous LTO IT system, which has been running for 13 years, is no longer responsive to current land transportation regulation requirements,” Transportation Secretary Joseph Emilio Abaya said.

“Once the new LTO-IT system is in place, it will make it easier for authorities to recover stolen vehicles, trace smuggled vehicles, prevent double registration and monitor unregistered vehicles,” he said.

The bidding for the contract was originally slated for the first half of 2012, but was delayed due to a restraining order issued by the Quezon City Regional Trial Court.