Integrity and Moral Ascendancy

Ano part ni Odilon Sta Teresa of Data Trail at Shimon Tsadik of Ceragon na barkada ng Technical working group ng AFP Commel???????

Friends of FGMA

Who is this Anonymous AFPFCS? He morphs into many different names, in other blog sites related to President Noy and Mar Roxas, posting the same malicious account regarding the bid process of the AFP-FCS.

I am a person who is very familiar with events and circumstances surrounding the conduct of the bid and the award of the contract as my company initially participated in the bid process for the AFP FCS. There were however, failure of bids along the way, and my company decided to no longer participate in the succeeding bid attempts.

However, we followed the events and circumstances with great interest as our product line is indispensable to the implementation of the AFP FCS and the winning bidder, whoever, it may eventually be, will have to purchase some of the equipment from us.

As it turned out, several of the bidders did in fact reflected some items in our product portfolio, in the bid documents that they submitted.

But what are the real facts about the AFP-FCS?

The names that were mentioned, USEC JOSE F SANTOS, VADM ARISTON V DELOS REYES, USEC FRANCISCO F DEL ROSARIO, ASEC JOSE N FERRER & ASEC OTHELO C. CARAG, were men of integrity and probity.

They were, during their respective tenure of services at the government and the private sector, highly regarded and well spoken of.

It is truly unfair for this ‘Anonymous AFPFCS’ to besmirch their good names while hiding behind the unaccountability and anonymity of bloodspots and internet sites.

‘Anonymous AFPFCS’ may actually be a low level employee of a losing bidder, judging by the bevy of faulty syntax and grammar in his account, or is in fact a high level executive of a losing bidder who is hiding behind a cloak of flawed grammar, and who probably lost his job as a result of the extravagant expense account that he racked up in the years previous to the bidding of the AFP-FCS, and whose ‘old boy’s club’ was side swiped by the reforms instituted by Sec Avelino Cruz and Secretary Gilberto C. Teodoro at the DND in the aftermath of the massive graft perpetuated by the former AFP Comptroller, Major General Carlos F. Garcia.

Every meeting of the AFP-FCS BAC Committee were attended by representatives/observers from the COA, DBM, NEDA, BSP, PCCI, the Makati Business Club, Philippine Bar Association, and other
interested organizations.

Our lasting impression, as participants and bidders in these meetings, is that the AFP-FCS BAC during the time of Sec Avelino Cruz, trailblazed a then unheard of policy of transparency at the AFP. This was continued during the term of Sec Gilbert Teodoro as DND secretary.

The account being foisted by ‘Anonymous AFPFCS’ is downright libelous.

He must present himself in the proper legal forum, with a sworn statement and complaint, to enable the parties whose reputations he maligns in internet forums such as this, to file the appropriate charges against him.

In retrospection, can we believe that the representatives of COA, DBM, NEDA, BSP, PCCI, the Makati Business Club, Philippine Bar Association, and other
interested organizations who have been invited, and were present, during ALL the AFP-FCS BAC meetings, opted to remain silent while the bidding for the AFP-FCS is being railroaded in favor of a particular bidder?

In hindsight, can we really believe that the representatives of LUCENT, ALCATEL, and NERA, sat meekly and idly by while their years of preparation for the bidding of AFP-FCS is unjustly taken away by the AFP-FCS BAC?

In retrospection, can we believe that the representatives of LUCENT, ALCATEL, and NERA, meekly accepted illegal decisions of the AFP-FCS?

In fairness to all parties concerned, winning and losing bidders alike, and to the names that are being maliciously maligned by ‘Anonymous AFPFCS’ some relevant factual and historical highlights are presented hereunder:

Project Background:

The AFP received from the General Appropriations Act and AFP Modernization Act Trust Fund CY 2000 and CY 2002 the amount of Four Hundred Forty Seven Million Three Hundred Sixty Thousand Pesos (PhP 447,360,000.00) for the Supply and Installation (Engineering, Furnishing, Installation and Testing (EFIT) and Commissioning) of the AFP Fixed Communications System (FCS) under the AFP Modernization Program.

The amount was put in escrow with government depositary banks.

The Armed Forces of the Philippines Fixed Communications System or AFPFCS
aims to upgrade and modernize the AFP’s obsolete backbone telecommunications network in phases. The project calls for replacement of aging, analog telecommunications equipment handed down by the US government to the AFP in late 70s.

The modern AFP FCS will directly support the command, control, administration and intelligence
requirements of the AFP as an integral part of C4I. It is the primary communication system that will provide reliable, responsive, secure and cost-effective linkages between the National Command Authority down to strategic and operational levels of command as well as within and between military camps and bases, stations and units for the exchange and transfer of information such as voice, data, image and video. The present system is already uneconomical to operate and maintain into the future due to obsolescence.

The AFP FCS will also serve as the main transmission facility of other AFP CEIS modernization projects such as the AFP’s Community Area Network (CAN), Integrated Radio Trunking System (IRTS) and Geographical Information System (GIS). It shall likewise accommodate the transmission requirements of CEIS projects of the major services such as the PA’s wide area network, PAF Air and Surface Surveillance Radar System and the PN Coast Watch System.

The AFP Fixed Communication Systems shall serve as the telecommunications highway for the different requirements of the AFP for voice, data, images and video networking services.

Specifically, the AFP FCS shall serve as the telecommunications highway for the switched data network of the AFP, known as the AFP CAN, where information systems for the AFP Command and Control shall pass through. Moreover, this shall also serve as the telecommunications backbone for the inter-connectivity of mobile communications systems of the AFP.

Considering that this is the main telecommunications system for the AFP Command and Control, it is expected that the equipment for the whole systems shall be in operation 24/7. The system reliability must comply with the minimum data grade path availability and reliability standards.

The equipment are expected to operate in an environment typical to any place in the tropical region such as temperature, humidity, precipitation, weather patterns, climactic cycles, and others that may have direct and indirect effect on its performance.

The AFP FCS is composed of permanently installed telecommunication infrastructure providing voice, data and video communications linkages between military camps and bases nationwide.

The proposed system is expected to provide reliable, responsive, secure, cost-effective and highgrade voice, data, and video conferencing services that will satisfy the AFP’s command and control requirements. Like any other telecommunication network, the AFP FCS is broken down into the following major components:

1. Transmission Facilities – Terrestrial microwave radio communications system
comprising of the existing AFP Long Lines Communications Systems (AFPLLCS) and may include facilities of the commercial telecommunications companies or newly established AFP systems as necessary.

2. Switching Facilities – Routing system for information from source to desired
destination. It shall include the cable facilities of the telephone-switching network.

3. Terminal Facilities – Telephones, computer systems and other equipment that
allow users to interface with system’s services.

4. Support Facilities – Includes buildings, power generators, commercial power and
water supply systems, environmental control, grounding systems and other ancillary equipment required to support the operations, administration and maintenance of the AFP Fixed Communication System.

Historical Highlights
The 1st Stage (Pre- Qualification stage) of the Bidding, was held on September 08, 2005.

The BAC was chaired by DND Usec. Jose F. Santos, a well respected banker from the private sector.

The Technical Working Group (TWG) is headed by Col. Ricardo Butalid, Jr. a highly regarded professional soldier and renowned for his competence and integrity.

Of the more than 30 companies who bought the Bid Documents, Alcatel, Siemens, Nera, Lucent Technologies and the joint venture between Ceragon Networks of Israel and Datatrail Corporation submitted their proposals.

Ssangyong of Korea had earlier been disqualified for failure to complete the site survey as required in the Instruction to Bidders. It is noteworthy that NEC and Fujitsu, two Japanese telecom equipment manufacturers did not participate because of prohibitions against participating in military procurement programs as embedded in the Japanese constitution.

Alcatel, Siemens, Nera, Lucent Technologies and the joint venture between Ceragon
Networks (Israel) and Datatrail Corp. were pre-qualified by the BAC after careful examination of their respective proposals.

It is interesting to note that the Bids and Awards Committee (BAC) in its new bidding
proceedings invited representatives from the private sectors and government agencies i.e., COA, DBM, NEDA, BSP, PCCI, the Makati Business Club, Philippine Bar Association, and other interested organizations to witness the bidding process. This was meant to institutionalize and provide transparency and a fair and level playing field to all bidders.

The 2nd Stage (Final Technical & Financial Proposal) of the 3rd Bidding was held on April 4, 2006 with Alcatel, Lucent Technologies and the joint venture between Ceragon Networks (Israel) and Datatrail Corporation submitting their proposals.

Nera and Siemens, who were both pre-qualified notified the BAC/TWG of their withdrawal from the bidding earlier, during the pre-bid conference held on February 27, 2006.

Alcatel was declared failed for insufficient Technical Documents and its Financial Proposal was not opened, in accordance with the Bidding Procedure.

Lucent Technologies’ proposal was opened and passed both the Technical and Financial Proposal.

The proposal from the joint venture between Ceragon Networks (Israel) and Datatrail Corp.
was opened last, and likewise passed the Technical and Financial Proposal.

The Financial Proposal by the joint venture between Ceragon (Israel) and Datatrail Corp. was however lower by PHP 42M than Lucent Technologies and it was therefore declared the Lowest Calculated Bidder (LCB) by the BAC/TWG.

This event was witnessed by everyone in the Conference Room including representatives from the government and private sectors, such as COA, DBM, NEDA, BSP, PCCI, the Makati Business Club, and the Philippine Bar Association on April 4, 2006

Subsequent adjustments for mathematical errors confirmed that the Financial Proposal
submitted by the joint venture between Ceragon Networks (Israel) and Datatrail Corp. was indeed lower than that submitted by Lucent Technologies by PHP 42M.

The BAC/TWG conducted the Post Qualification on the joint venture between Ceragon
Networks (Israel) and Datatrail Corp. first on Datatrail Corp., and later on Ceragon Networks (Israel) on November 19 – 25, 2006 to verify, clarify, validate and confirm that Ceragon Networks (Israel) was indeed a manufacturer of SDH/PDH microwave radios, that the radio equipment it will deploy for the AFPFCS is indeed all-indoor type, and the equipment are in commercial production and are currently used/operated by the Israeli Defense Forces and other military organizations as required by the Technical Specifications. Likewise the BAC/TWG verified and confirmed that all the
documents submitted by Ceragon Networks (Israel) were complete and duly authenticated by the Philippine Embassy in Israel.

The BAC/TWG subsequently declared the joint venture between Ceragon Networks (Israel) and Datatrail Corp. to have passed the Post Qualification and signed a BAC Resolution declaring the joint venture between Ceragon Networks (Israel) and Datatrail Corp. as the Lowest Calculated Responsive Bid (LCRB).

The newly reconstituted BAC/TWG under DND Sec. Hermogenes Ebdane re-affirmed, through a signed BAC Resolution, the joint venture between Ceragon Networks (Israel) and Datatrail Corp. to have passed the Post Qualification and passed a resolution declaring the joint venture between Ceragon Networks (Israel) and Datatrail Corp. as the Lowest Calculated Responsive Bid (LCRB).

The newly reconstituted BAC/TWG under DND Sec. Hermogenes Ebdane invited the old BAC/TWG under then Sec. Avelino Cruz to an extra ordinary special session last Thursday, April 12, 2007.

In an unprecedented move, the two BACs re-affirmed, the designation of the joint venture between Ceragon Networks (Israel) and Datatrail Corporation as Lowest Calculated Responsive Bid (LCRB).

On May 22, 2007, Secretary Hermogenes Ebdane signed the Notice of Award in favor of the joint venture between Ceragon Networks (Israel) and Datatrail Corporation

Upon the assumption of Secretary Gilberto C. Teodoro as DND chief, a review of the bid documents relating to the AFP-FCS was ordered.

The entire proceedings and documentation was found to be above board.

The AFP-FCS Contract was then signed by AFP Chief of Staff, General Alexander B. Yano.

The Contract was reviewed and approved by Secretary Gilberto C. Teodoro.

A Notice to Proceed was signed and issued by Secretary Gilberto C. Teodoro in December 23, 2008.

So the public may know.

I was initially aghast at the revelations of “Anonymous AFP”.

Then I did some research.

Here are the facts:
1. The AFP-FCS was awarded at a price of P388 Million.

2. This award is lower by P60 Million Pesos compared to the Approved Budget for the Contract (ABC) for the AFP-FCS.

3. Prior to the tenure of Sec Cruz and Teodoro, there was no award of contract at the AFP that was awarded, that did not reach the ABC threshold.

4. What this means is that a review of prior contracts, prior to the reforms set in place by Sec Cruz and Teodoro, show that the maximum contract price had been consistently awarded to winning bidders.

5. In layman’s terms, previous contracts have been awarded at a price that is a few thousand pesos lower than the Approved Budget for the Contract (ABC) for the AFP-FCS.

6. So this is something real new and refreshing. What then is the alleged controversy about?

7. As I earlier stated, a review of most if not all the contracts awarded at the AFP, since time immemorial, had always hovered at only a few thousand pesos below the Approved Budget for the Contract (ABC). This is maximizing the profit of the bidders, so to speak, at the expense of the Filipino taxpayers, and indicating collusion among the bidders as well.

8. This was changed during the time of Secretary Avelino Cruz, and exemplified by the bidding process for the AFP-FCS, where the contract was awarded at a bid lower by P60 Million compared to the ABC.

9. Likewise, the contract awarded to the winning bidder was P42 Million lower than the next lowest bid.

So really, since this is something that is advantageous to the Filipino people and the Philippine government, and the AFP, what then is the controversy about?

By the way, I checked with people in the know at the AFP, the 1st Stage (Pre- Qualification stage) of the AFP-FCS Bidding, was indeed held on September 08, 2005. Alcatel, Lucent, Nera, and the Joint venture of Datatrail and Ceragon all participated in said first stage bidding.

What really then is the fuzz about, “Anonymous AFP”?