REPUBLIC OF THE PHILIPPINES DEPARTMENT OF TRANSPORTATION LAND TRANSPORTATION OFFICE att Avene, Quezon City E-mail Address: lomalboxt@ito.iovph = Websie. owuo.govnh NOTICE OF AWARD September 21, 2021 Ms, MARIVIC G. RUSUELLO ‘Authorized Representative Dermalog-Airspeed Joint Venture 2" Floor Anvins Building, 137 San Antonio ‘Avenue comer San Pancracio Street San Antonio Valley 1, Parafiaque City Dear Ms. RUSUELLO, Please be informed that your Bid Proposal relative to the Procurement of Pre-printed Driver's License Cards for CY 2021 for the contract price equivalent to Eighty Six Million Six Hundred Fifty Thousand Pesos only (Php 86,650,000.00) is hereby accepted. ye accordance with Section 39 of the 2016 Implementing Rules and Regulations of R.A No. 9184. Failure to provide the performance security shall constitute sufficient ground for cancellation of the award. Very truly yours. EDGAR & GALVANTE Conforme: “in AAD Name of Bidder/Authorized Representative Date Received: SE. 72, 20%LAI mat Addons: ho BIDS AND AWARDS COMMITTEE RESOLUTION IRTATION OFFICE cay SUB. RECOMMENDATION THAT THE CONTR, PROCUREMENT OF PRE-PRINTED DRIVER'S POICENSE CARDS FOR CY 2021 BE AWARDED TO THE JOINT VENTURE Or SDERMALOG IDENTIFICATION SYSTEMS GMBH AND AIRSPEED INTERNATIONAL CORPORATION WHEREAS, on 3 December 2020, the Land Transportation Office posted an Invitation to Bid! for the Procurement of Driver's License Cards for Calendar Year 2021 with an approved budget for the contract (ABC) in the amount of One Hundred Fifteen Millon Pesos (PhP 115,000,000.00). WHEREAS, on 22 December 2020, the Joint Venture of Dermalog Identification Systems GmbH and Airspeed International Corporation, and Allcard, Inc Participated in the bid opening for the subject procurement, wherein Allcard, Inc. was declared the Lowest Calculated Bidder with a bid of Seventy One Million Seven Hundred Thirty Five Thousand Pesos (PhP 71,735,000.00). WHEREAS, on 7 January 2021, the Bids and Awards Committee declared Alleard, Inc as post-disqualified? for its failure to submit a certification from the manufacturer of the Pre-printed Driver's License Cards that the pre-printed cards should last at least seven (7) years and passed an ISO 24789 Durability Test, as required under No. 6, (par. F) OTHERS (iii) of the Bidding Documents.? WHEREAS, considering the post-disqualification of Allard, Inc., the Bids and Awards Committee, through its Technical Working Group, conducted post-qualification on the bid submitted by the Dermalog Joint Venture, it being the second lowest calculated bidder with an offer of Eighty Six Million Six Hundred Fifty Thousand Pesos (PhP. 86,650,000.00), pursuant to Section 34.6 of the Revised Implementing Rules and Regulations of Republic Act No. 9184. WHEREAS, during the meeting of the Bids and Awards Committee on 5 February 2021, the Technical Working Group presented its Post-Qualification Evaluation Report* dated 1 February 2021 and recommended to declare the bid of Dermalog Joint Venture as the bidder with the Single Calculated and Responsive Bid, subject to the final evaluation of the Bids and Awards Committee. WHEREAS, during the same meeting and pursuant to Section 34.3 of the Revised Implementing Rules and Regulations of Republic Act No. 9184, which provides that, “The post-qualification shall verify, validate, and ascertain all statements made and documents submitted by the bidder with the Lowest Calculated Bid/Highest Rated Bid, using non- "A true and faithful machine reproduction of the Invitation to Bid for the Procurement of Driver's License Cards for Calendar year 2021 is attached hereto and marked as Annex “A 2A true and faithful machine reproduction of the Notice of Post-Disqualification issued to Allcard, Inc. on 2021 is attached hereto and marked as Annex “B" 3 Aiwe ard faithful machine reproduction of the Post-Disqualification Report prepared by the Technical tached hereto and marked as Annex “C*. ‘ ite nd anh machine reproduction of the Post-Qualfication Report dated § February 2021 prepared by the Technical Working Group is attached hereto and marked as Annex “D”discretionary criteria, as stated in the Bidding Documents, the Bids and Awards Committee decided to evaluate further the technical documents, particularly the Single Largest Completed Contract (SLCC) submitted by the Dermaiog Joint Venture, which happens to be the Procurement of Six Million Driver's License Cards with Five (5)-Year Validity for CY 2017. WHEREAS, in accordance with foregoing provision of the law, these criteria shall consider, but shall not be limited to, the following iii) Verification and/or inspection and testing of the goods/product, after-sales _and/or__maintenance capabilities, in applicable cases, as well as checking the following: 1. Delay in the partial delivery of goods amounting to ten percent (10%) of the contract price in its ongoing government and private contracts; 2. Ifany of these contracts shows the bidder's failure to deliver or perform any or all of the goods or services within the d(s)_specified_in_the contract or within any extension thereof granted by the Procuring Entity pursuant to a request made by the supplier prior to the delay, and such failure amounts to at least ten percent (10%) of the contract price; or 3. Unsatisfactory performance _of the supplier's obligations as per contract terms and conditions at_the time of inspection. (Emphasis and underscoring ours) WHEREAS, the same provision further states that if the Bids and Awards Committee verifies any of these deficiencies to be due to the bidder's fault or negligence, the BAC has the authority and obligation to disqualify the bidder from the award, for the procurement of Goods. ust 2021, the Bids and Awards Committee conducted a meeting Wherein a member of the committee moved to declare the Joint Venture of Dermalog Identification Systems GmbH and Airspeed International Corporation as post-disqualified for having an invalid Single Largest Completed Contract (SLCC) based on its patent failure to complete its contractual obligations and tum over the aforementioned deliverable items for the Procurement of Six Million Driver's License Cards with Five (5)- Year Validity for CY 2017. Immediately thereafter, the said motion was duly seconded. WHEREAS, on 4 Augt WHEREAS, while the resolution post-disqualifying the Dermalog Joint Venture was being routed to the members of the Bids and Awards Committee, a member of thereof revoked her approval on the post-disqualification resolution’ on 23 August 2021, and instead signified her intention to abstain® from voting on the subject resolution on the ground that post-disqualifying the Dermalog Joint Venture would result in the agency haying We coerce cards to sue considering that it would take a considerable amount of ime for the T atrue and faithful machine reproduction of the BAC Resolution dated 4 August 2021 post-disqualifying the Dermalog Joint Venture is attached hereto and marked as Annex «je tiue and faithful machine reproduction of the Memorandum dated 23 August 2021 issued by Ms Marivic E. Lopez is attached hereto and marked as Annex "F”procurement activities to complete once a failure of bidding is have been depleted long betore the procurement process is concluded. winch oni oo probably subject the agency to congressional and senate investigations, ard erices from media practitioners and the general public. } and criticisms WHEREAS, on 23 August 2021, two other members of the Bic ‘expressed their decision’ not to sign the resolution Rect aman ie Daneeon Venture on the basis of the Post-Qualification and Evaluation Report dated 01 Feb ay 2021 issued by the BAC Technical Working Group certifying that the Joint Venture of DERMALOG Identification System and Airspeed International Corporation complied with all the requirements and conditions as specified in the bidding documents, including the satisfactory results of Proof of Concept (POC). , ° WHEREAS, considering the abstention of one member of the Bids and Awards Committee, and the decision of its two other members not to sign the resolution post- disqualifying the Dermalog Joint Venture, there is no longer a majority of the members adopting the resolution dated 4 August 2021 WHEREAS, a majority of the members of the Bids and Awards Committee agreed that a meeting be called to revisit and reconsider the resolution post-disqualifying the Dermalog Joint Venture, and to further discuss the circumstances pertaining to the Procurement of Pre-printed Driver's License Cards for CY 2021 WHEREAS, on 1 September 2021, the Bids and Awards Committee conducted a meeting wherein the members constituting a quorum, and presided by the Vice-Chairman, decided that there is an obligation to strike a balance between the immediate need to issue driver's licenses to the general population, and the interests of the agency to be independent in performing its mandate, which are both imbued with public interest. WHEREAS, in the same meeting, the memoranda of the members who do not wish to participate in the issuance of the resolution post-disqualifying the Dermalog Joint Venture, were read into the records. Thereafter, a member of the BAC inquired if the three other members categorically disapprove of the resolution post-disqualifying the Dermalog Joint Venture considering that the memoranda they issued do not indicate that they disapprove the resolution mmbers who prepared their respective memoranda openly to the resolution post-disqualifying the Dermalog Joint Venture, However, one member of the committee manifested that she stands by her position to post-disqualify the Dermalog Joint Venture based on the legal and factual circumstances stated in the 4 August 2021 resolution. WHEREAS, the three me! expressed their disapproval and Awards Committee moved that there is still aneed ution to the BAC Chairman despite the disapproval of bers of the committee, The motion was duly WHEREAS, a member of the Bids to transmit the 4 August 2021 resol the resolution by a majority of the mem! seconded. WHEREAS, another member of the Bids and Awards Committee stated thereafie hat there lt a need to move forward with respect to the subject procurement, and (ross tt the Contract for the Procurement of Pre-printed Driver's License Cards for Ce awarded to the Joint Venture of Dermalog Identification Systems GmbH an —— issued by Mr. Roberto 7 True and fathfal machine reproductions ofthe Memoranda dated 23 August 2021 issued Oy 18) ir uganda macrin epruction of jedpereto and marked as Annex “and Annex respectvely oe iwInfernational Corporation based on the Post-Qualfication Evaluation Report dated | February 2021, recommended to declare the bid of Dermalog Joint Venture as the bidet wath the Single Calculated and Responsive Bid, the Memorandum of the Management Information Division dated 5 July 2021°, and the presentation of the Management Information Division during the meeting of the Bids and Awards Committee on 21 July 2021. The said motion was likewise duly seconded WHEREAS, there is no question that any allegation of manipulation or misrepresentation in government projects deserves an inquiry into its veracity. However, a majority of the members believe that such accountability being asked of a private contractor neither be at the expense of the Filipino people, nor that the integrity of the agency suffer in the court of public opinion, It goes without saying that the members of the BAC perform their functions on the command of transparency and public accountability, and that their clamor for such accountability is a clear indication of their conviction that a public office is a public trust. However, a majority of the members of the BAC are of the position that the best venue for this noble undertaking lies with the regular courts, initiated by the Land Transportation Office, through the Office of the Solicitor General WHEREAS, the majority of the BAC members also believe that to avoid similar issues in the future with regard to the procurement of pre-printed license cards, it would be best that the Terms of Reference for such projects be clear, plain, and free from ambiguity, WHEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, that in consideration of the foregoing premises, the majority of the members of the Bids and Awards Committee constituting a quorum recommend that the Contract for the Procurement of Pre-printed Driver's License Cards for CY 2021 be awarded to the Joint Venture of Dermalog Identification Systems GmbH and Airspeed International Corporation with its bid price in the amount of Eighty Six Million Six Hundred Fifty Thousand Pesos (PhP 86,650,000.00), it being the Lowest Calculated and Responsive Bid (CRB), Done this 1* day of September 2021 in Quezon City, Philippines. Memorandum dated 5 July 2021 issued by the "A true and faithful machine reproduction of the ee ene rested he BAC Resolution on five pending items s attached Management information Division as a response (0 hereto and marked as Annex‘ oeMember Member ATTY. MERCY JANE B. PARAS-LEYNES Member Ce ROBERTO A. VALERA Vice Chairman ATTY. ROMEO G. VERA CRUZ Chairman Approved! Disaffroved EDGAR & ‘AssisjAnt Secretary Head of the Procuring Entity