3 bidders want SMC disqualified from CALAX project

Posted at 06/03/14 6:15 PM

MANILA, Philippines – Three bidders in the Cavite-Laguna Expressway (CALAX) project are seeking the disqualification of San Miguel Corp. (SMC) for allegedly violating bidding rules.

Malaysia’s Alloy MTD Philippines; Ayala Corp. and Aboitiz group’s Team Orion; and Metro Pacific Investments Corp.’s MPCALA Holdings Inc. manifested their objections to the bid submitted by SMC’s Optimal Infrastructure Development Inc.
MPCALA Holdings, through its representative Christopher Daniel Lizo, sent a letter to DPWH undersecretary and SBAC chairman Rafael Yabut to raise the issue on SMC’s bid security.

Lizo cited Section 5.1 (c) and 6.1 of the Instruction to Bidders, which states that bid security must be in the form of Annex BL-3 without modification whereby bids without the prescribed bid security shall be automatically rejected.
He said Section 7.1 (b) of the implementing rules and regulations of the Build Operate Transfer (BOT) law or Republic Act 7718 states that non-compliance to the period prescribed for validity of the bid security shall be a ground for the automatic rejection of a bid.
For the P35.4 billion-CALAX project, the DPWH required a validity period of at least 180 days from the bidding date or June 2 until November 29.
“The bid security of Optimal Infrastructure shall expire on Nov. 25., indicating that the bid security of Optimal Infrastructure is only valid and effective for 176 days from the bid proposal submission date,” Lizo said in his letter.
MPCALA added that Optimal Infrastructure did not comply with requirements because its bid was not properly packaged, sealed, and labeled.

“In the spirit of fairness, we trust that the SBAC shall consider the foregoing grounds in finding that there are sufficient bases to merit the rejection of the entire bid proposal of Optimal Infrastructure for the Cavite Laguna expressway,” Lizo said.

According to MTD Philippines president Isaac David, the company has also sent a written manifestation to the Department of Public Works and Highways (DPWH) Special Bids and Awards Committee (SBAC) to voice out their concerns on SMC’s failure to comply with the validity period for the bid security.
“I was informed that the validity of the bid security is four days short of the 180 calendar days from date of bidding,” David said.

Public Works Secretary Rogelio Singson earlier said financial bids are expected to be opened on Friday, after the agency has reviewed the legal and technical bids of the pre-qualified bidders.