Stradcom seeks renewal of LTO deal
Local technology firm Stradcom Corp. has submitted a proposal to renew its multibillion-peso information technology (IT) contract with the Land Transportation Office (LTO), which expires next year.
In a statement, the company reiterated its assertion that the government should honor Stradcom’s rights under its concession deal that gives the firm preferential treatment in choosing the LTO’s new IT contractor.
“Stradcom believes that it would not only be difficult for any other corporation to beat its proposal but that it would be wise for the government to renew the contract as it would be more advantageous to the government since it would allow the government to continue providing the services at zero expense,” Stradcom said in a statement.
Stradcom’s proposal comes amid the Department of Transportation and Communications’ (DoTC) recent discussions with top tech firms about different technologies that can be used to replace the computer systems Stradcom already has in place. Stradcom’s contract with the LTO expires in February 2013.
Under its proposal, Stradcom said it would rehabilitate its existing facilities at LTO sites across the country, including the central office for P1 billion. The company said it would also upgrade the LTO’s existing IT infrastructure, system and facilities, also estimated at P1 billion.
Stradcom would also conduct human resource development or training programs for LTO’s 3,000 employees, apart from the development and roll-out of public service programs, such as online license renewal for overseas Filipino workers.
Stradcom, aside from paying taxes to the national government, will also grant an annual revenue share of P200 million, or a total of P2 billion, over the said 10-year renewal concession period.
The IT provider said it would also address the perennial issue of driver’s license card production by providing the driver’s license cards at half their present cost. The national government would save about P300 million in one year alone, or a total of P3 billion over a 10-year period.
Stradcom president Cezar Quiambao in a letter said the company was likewise open to other counter-proposals of the government.
However, he said, if the DoTC has already adopted a policy decision to bid out a new LTO IT Project under existing build-own-operate (BOO) procurement laws, Stradcom would seek the transitory renewal agreement or contract that would “help manage the impact to about 800 private personnel directly and indirectly employed under and by virtue of the LTO IT Project.
He has requested a meeting with the DoTC within 30 days to discuss whether or not to renew the existing BOO agreement.
