Stradcom shareholder to join new bid for IT contract


    Last of two parts

    BUSINESSMAN Bonifacio Sumbilla told The Manila Times his group was in the process of forming a consortium to participate in the public bidding for a new information technology (IT) system for the Land Transportation Office (LTO).

    The planned new LTO IT system aims to provide a sustainable solution to address the current system’s issues.
    When it finally interlinks with the automation system of the Land Transportation Franchising and Regulatory Board (LTFRB), the government will be able to eliminate cases of public utility vehicles (PUVs) securing an LTFRB franchise without LTO registration, as well as PUVs that are registered with the LTO but do not have an LTFRB franchise.

    It will also make it easier for authorities to recover stolen vehicles, trace smuggled vehicles, prevent double registration and monitor unregistered vehicles.

    The original procurement of the new LTO IT system, a contract worth P8.2 billion, was ordered in 2011. The following year, the Transportation department split the contract into two, because of the bidders’ failure to qualify for the project’s broad scope.

    The contract for software and data components was worth P3.4 billion, while the hardware component contract was worth P4.8 billion. But the bidding was delayed when the Quezon City Regional Trial Court issued a temporary restraining order (TRO) amid internal ownership disputes in Stradcom.

    In February 2013, Stradcom’s contract expired while the TRO was in effect. To avoid disruption of transactions and reversion to manual operations, the government extended Stradcom’s contract through emergency procurement under the provisions of Republic Act 9184 or the Government Procurement Reform Act.

    The court lifted the TRO in the same year and ruled that the government may proceed with the bidding for a new IT service provider. The Court of Appeals upheld the lower court’s decision in March 2016.


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