DND’s fuel contract bidding fails to take off

The Philippine Department of National Defense (DND) said that the public bidding for an Php8 billion (US$183.91 million) contract to supply fuels and lubricants to the military has failed. The DND opened the bids on November 15. Assistant Secretary Ernesto Boac, who heads the department’s bids and awards committee (BAC), said the bids submitted by Petron Corp. and Balayan Refilling Station did not comply with the project requirements. He said the committee would still recommend to Defense Secretary Voltaire Gazmin to reopen the bidding even though the fuel supply contract is supposed to start in January. The DND had hoped to attract independent oil players to participate in the bidding by breaking down the fuel contract into 11 lots. The combined contracts allocate Php5.76 billion (US$132.41 million) for fuel, Php1.98 billion (US$45.51 million) for aviation petroleum oil and lubricants, and Php303.61 million (US$6.97 million) for lubricants. The DND has not had a fuel contract for several years since past bidding failed to take off as well for various reasons, such as when fuel prices exceeded the approved contract budget. (November 22, 2010)