Integrity and Moral Ascendancy

What ?? Who told you that Datatrail Corporation participated the 1ST STAGE bidding ?????

Please STOP FOOLING us and the Philippine Government. Also, stop fooling YOURSELF ! Alam mo ang buong katotohanan. This P-Noy government has TRUTH COMMISSION now. So, bawal na ang mga sinungaling. I challenge you to say that UNDER OATH.

You continuously break the law. Both DataTrail Corporation and Ceragon Networks, in conspiracy with AFP DND BAC failed to practice what they were expected to do, i.e., implement the latest RA9184 and IRR on JVA released early 2005.

Datatrail Corporation DID NOT participate the 1ST STAGE. I guess you were not there. Datatrail Corporation REFUSED to submit their separate Eligibility Documents because of “stringent” qualification requirements of RA9184 and IRR, for them to become eligible to bid. Tumawad lang kayo ng kaunti, akala ninyo makakalusot kayo to justify your MISDEEDS AND FRAUDULENT ACTS. Nasa batas yan sa RA 9184, yung hindi pasado, hindi nag submit ng Eligibility Documents, eh hindi kasali na magsubmit ng Technical and Financial Proposals (2ND STAGE). Wag na po tayong maglokohan !

Government fraud is A VERY SERIOUS CRIME !

You are again misleading the Public and the Philippine Government. Since your Company DATATRAIL CORPORATION did not participate the 1ST STAGE Bidding, the ELIGIBILITY STAGE, your best CHANCE to present your legal documents to become eligible to Bid so we could recognize you as ONE OF THE QUALIFIED BIDDERS, you just refused and still CONTINUE TO REFUSE to present your Eligibility Documents. Niligaw po ninyo yung mga Signatories na binanggit ninyo. Also, please follow the rule of law the latest RA 9184 and IRR on JVA published early 2005. Since you DID NOT participate the 1ST STAGE BIDDING which is the MOST IMPORTANT STAGE BECAUSE IT IS THERE WHERE WE CAN SEE IF YOUR COMPANY, DATATRAIL CORPORATION IS PAYING THE RIGHT TAXES and TO SEE YOUR QUALIFICATION HISTORY, wala po kayong pinakitang kahit anong documents. Again, Datatrail Corporation DID NOT participate the 1ST STAGE Bidding. This is highly illegal and criminal offense on your part as a Contractor, obviously THIS BIDDING AND AWARDING OF CONTRACT WAS TAINTED WITH GRAFT AND CORRUPTION.

And So, the public may know !

SOLID EVIDENCE (THIS IS WELL DOCUMENTED)

TO SHOW PROOF OF EVIDENCE THAT We have NOT seen Datatrail Corp. during the 1ST STAGE THE ELIGIBILITY STAGE Bidding, here’s an AFP document from their online archive:

AFP Modernization Program Fixed Communications System Bid Bulletin (notice ONLY four bidders’ ELIGIBILITY DOCUMENTS WERE SCRUTINIZED, namely: Alcatel Phils., Inc., Lucent Technologies, Nera Phils., and Ceragon Networks)

X X X X X X
Fixed Communication System (stage/status: 1st stage of the 2-stage procurement mode was held last September 8, 2005; new invitation to apply for eligibility and to bid (ITAEB) will be issued on October 20, 2005)
Procurement Stage: 1st Stage – Opening and Submission of Bids
ABC: P447,360,000.00
Length of Delivery: 240 calendar days upon issuance of Notice to Proceed
Highlights : Through a Supplemental Bulletin, the deadline for submission and opening of bids for the 1st stage bidding for this project was changed from 25 August 2005 to 8 September 2005, 9:00 a.m. On the day of submission and opening of bids, 4 companies complied, namely Alcatel Phils., Inc., Lucent Technologies, Nera Phils., and Ceragon Networks. None of them failed when their eligibility envelopes were opened. During the initial evaluation of the technical proposals of the 4 bidders, the BAC declared that they all passed, yet subject to post qualification/evaluation. BAC shall formally announce in writing, through the Secretariat, the results of the evaluation. Schedule of the opening of the revised technical proposal and their financial proposals (i.e. 2nd phase of a two-stage bidding process) is scheduled on October 20, 2005 due to request of bidders for longer time to prepare revised technical proposals.

http://www.hueybravo.net/Modernization%20Projects.htm

X X X X X

Based on the AFP BAC’s Bid Bulletin, it showed beyond doubt that there were ONLY 4 Bidders, not 5; the private Filipino company Datatrail Corp. was not in the list !

WHERE’s DATATRAIL CORPORATION during the 1st STAGE Bidding ?? No docs ? Missing in action ? Datatrail Corporation totally ignored the 1ST STAGE ELIGIBILITY STAGE. THEY HAVEN’T EVEN SUBMITTED THEIR EFS BIR Certifications PAID Stamped Receipt equivalent to 50% of the ABC and Qualifications History, etc ? So now here’s the question, IS THIS the “level playing field” that AFP DND BAC were talking about ? Bakit napakalakas naman po yata ng Datatrail Corporation sa DND BAC. Kung kelan halos patapos na ang bidding, dun lang ididikit yung name nila sa Project na naka- “JVA” kuno ! Dahil po ba kasi masyadong malaki ang “TONG-PATS” !??

What ?? Who told you that Datatrail Corporation participated the 1ST STAGE bidding ?????

Please STOP FOOLING us and the Philippine Government. Also, stop fooling YOURSELF ! Alam mo ang buong katotohanan. This P-Noy government has TRUTH COMMISSION now. So, bawal na ang mga sinungaling. I challenge you to say that UNDER OATH.

You continuously break the law. Both DataTrail Corporation and Ceragon Networks, in conspiracy with AFP DND BAC failed to practice what they were expected to do, i.e., implement the latest RA9184 and IRR on JVA released early 2005.

Datatrail Corporation DID NOT participate the 1ST STAGE. I guess you were not there. Datatrail Corporation REFUSED to submit their separate Eligibility Documents because of “stringent” qualification requirements of RA9184 and IRR, for them to become eligible to bid. Tumawad lang kayo ng kaunti, akala ninyo makakalusot kayo to justify your MISDEEDS AND FRAUDULENT ACTS. Nasa batas yan sa RA 9184, yung hindi pasado, hindi nag submit ng Eligibility Documents, eh hindi kasali na magsubmit ng Technical and Financial Proposals (2ND STAGE). Wag na po tayong maglokohan !

Government fraud is A VERY SERIOUS CRIME !

You are again misleading the Public and the Philippine Government. Since your Company DATATRAIL CORPORATION did not participate the 1ST STAGE Bidding, the ELIGIBILITY STAGE, your best CHANCE to present your legal documents to become eligible to Bid so we could recognize you as ONE OF THE QUALIFIED BIDDERS, you just refused and still CONTINUE TO REFUSE to present your Eligibility Documents. Niligaw po ninyo yung mga Signatories na binanggit ninyo. Also, please follow the rule of law the latest RA 9184 and IRR on JVA published early 2005. Since you DID NOT participate the 1ST STAGE BIDDING which is the MOST IMPORTANT STAGE BECAUSE IT IS THERE WHERE WE CAN SEE IF YOUR COMPANY, DATATRAIL CORPORATION IS PAYING THE RIGHT TAXES and TO SEE YOUR QUALIFICATION HISTORY, wala po kayong pinakitang kahit anong documents. Again, Datatrail Corporation DID NOT participate the 1ST STAGE Bidding. This is highly illegal and criminal offense on your part as a Contractor, obviously THIS BIDDING AND AWARDING OF CONTRACT WAS TAINTED WITH GRAFT AND CORRUPTION.

And So, the public may know !

SOLID EVIDENCE (THIS IS WELL DOCUMENTED)

TO SHOW PROOF OF EVIDENCE THAT We have NOT seen Datatrail Corp. during the 1ST STAGE THE ELIGIBILITY STAGE Bidding, here’s an AFP document from their online archive:

AFP Modernization Program Fixed Communications System Bid Bulletin (notice ONLY four bidders’ ELIGIBILITY DOCUMENTS WERE SCRUTINIZED, namely: Alcatel Phils., Inc., Lucent Technologies, Nera Phils., and Ceragon Networks)

X X X X X X
Fixed Communication System (stage/status: 1st stage of the 2-stage procurement mode was held last September 8, 2005; new invitation to apply for eligibility and to bid (ITAEB) will be issued on October 20, 2005)
Procurement Stage: 1st Stage – Opening and Submission of Bids
ABC: P447,360,000.00
Length of Delivery: 240 calendar days upon issuance of Notice to Proceed
Highlights : Through a Supplemental Bulletin, the deadline for submission and opening of bids for the 1st stage bidding for this project was changed from 25 August 2005 to 8 September 2005, 9:00 a.m. On the day of submission and opening of bids, 4 companies complied, namely Alcatel Phils., Inc., Lucent Technologies, Nera Phils., and Ceragon Networks. None of them failed when their eligibility envelopes were opened. During the initial evaluation of the technical proposals of the 4 bidders, the BAC declared that they all passed, yet subject to post qualification/evaluation. BAC shall formally announce in writing, through the Secretariat, the results of the evaluation. Schedule of the opening of the revised technical proposal and their financial proposals (i.e. 2nd phase of a two-stage bidding process) is scheduled on October 20, 2005 due to request of bidders for longer time to prepare revised technical proposals.

http://www.hueybravo.net/Modernization%20Projects.htm

X X X X X

Based on the AFP BAC’s Bid Bulletin, it showed beyond doubt that there were ONLY 4 Bidders, not 5; the private Filipino company Datatrail Corp. was not in the list !

WHERE’s DATATRAIL CORPORATION during the 1st STAGE Bidding ?? No docs ? Missing in action ? Datatrail Corporation totally ignored the 1ST STAGE ELIGIBILITY STAGE. THEY HAVEN’T EVEN SUBMITTED THEIR EFS BIR Certifications PAID Stamped Receipt equivalent to 50% of the ABC and Qualifications History, etc ? So now here’s the question, IS THIS the “level playing field” that AFP DND BAC were talking about ? Bakit napakalakas naman po yata ng Datatrail Corporation sa DND BAC. Kung kelan halos patapos na ang bidding, dun lang ididikit yung name nila sa Project na naka- “JVA” kuno ! Dahil po ba kasi masyadong malaki ang “TONG-PATS” !??

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"?

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.

AN OPEN LETTER :

Another NBN/ZTE Scandal, AFP-Wide Support and Separate Unit (AFPWSSU) Budget is P10.616-B in 15 years !

AFP Fixed Communication System (FCS) Project, Project Nr AFPMP-GHQ-09-001-04.
DND BAC biased towards a bidder who did not participate the Stage 1 and 2 bidding process ended up as the winner bagging the AFP FCS project, the PhP 447,360,000.00 being the Approved Budget for the Contract.

The AFP FCS bidding held between Y2005 and Y2006 is nothing but a hoax. Former Sec. Gilbert Teodoro recently signed approved the awarding of the contract to Datatrail, a company highly regarded by the genuine bidders simply as an 'order taker', bagging the project illegally.

Issues of favoratism were raised by the bidders against the DND BAC for the questionable awarding of contract to Datatrail.

The bidders and everyone in the room including the watchers all knew that Datatrail did not participate the bidding process Stage 1 and 2: Datatrail did not submit any Eligibility Documents, no original income tax stamped 'Received' by the BIR, etc. So, how could they win ?

This is again, Datatrail's template in the works after their Bureau of Immigration ID Scam in 2005, leaving everyone in the dark.

AGENCY INVOLVED : DND BAC 2005-2006
DND - BAC CHAIRMAN USEC JOSE F SANTOS
VICE CHAIRMAN VADM ARISTON V DELOS REYES AFP
BAC MEMBERS USEC FRANCISCO F DEL ROSARIO, ASEC JOSE N FERRER & ASEC OTHELO C CARAG

The former DND BAC (2005-2006) have a lot explaining to do when they hastily awarded the contract to Datatrail without the submission of Class 'A' Legal Documents vital to ensure a 'fair playing field.' The bidders wanted to see the papers of Datatrail if they were indeed eligible to bid in Y2005.

The only thing that Datatrail presented to the DND BAC (after all the four biddders- Alcatel, Ceragon, Nera and Lucent rated 'Passed' the Stage 1 and Stage 2 bidding process), was a single piece of paper. It stated there that Datatrail was actually in Joint Venture Agreement with Ceragon.

With the submission of that JVA paper alone, the DND BAC hastily awarded the contract to Datatrail. During Stage 1 and 2 bidding process when all the bidders were required by DND BAC to submit their bids, we could not see Datatrail, merely an 'Outsider' and part of the audience (no Class 'A' Original Legal Documents with them during the Stage 1 and 2, so to speak), yet Datatrail managed to surprise everyone to have been proclaimed as 'the winner' bagging the contract. Most of the bidders and watchers suspected “irregularities” in the conduct of the bidding process by the Bids and Awards Committee (BAC).


This is illegal, the DND BAC seemed ignorant about law governing procurement IRR of RA 9184:

IRR of RA 9184 on JVA states the following-

As amended by Memorandum Order No. 176, dated 27 June 2005, published in the Official Gazette on 29 August 2005 (again, this is a year 2005 Memorandum Order).

"2. Class “B” Documents –
a) Valid joint venture agreement, in case of a joint venture. EACH MEMBER of the joint venture shall submit the required Eligibility Documents;" ;

"Eligibility Requirements for Joint Venture (JV): The determination of eligibility of prospective bidders is based on the submission of Class 'A' (legal, technical and financial documents)." ;

"ALL MEMBERS of the JV should provide SEPARATE Class 'A' documents to be eligible.".

Here, Datatrail did not participate the bidding process Stage 1 & 2 did not submit their Class 'A' Documents. DND BAC never examined Datatrail's eligibility qualifications in front of the other bidders. Because of this, Ceragon JVA with Datatrail, who submitted nothing but the JVA paper, both of them should then be disqualified.


CLEAR PATTERNS OF COLLUSION AND MASSIVE CORRUPTION AMONG THE BIDDERS AND DND BAC:

Datatrail, in connivance with DND BAC, employed schemes which defeat competition. Their papers were never examined by DND BAC; unlike the other bidders whose papers were being scrutinized well by the DND BAC, Datatrail was treated differently and more favorably, they were simply part of the audience acted like ordinary watchers.

Circumstantial and corroborative evidence was clearly seen here: There's collusive agreement among some of the bidders which predetermines the winning bidder and limits or eliminates competition among the conspiring vendors.

On DND BAC, they did not ask Datatrail to submit any Class 'A' Elegibility Documents, unlike the other bidders, Datatrail was allowed "not to participate" the bidding process Stage 1 & 2. DND BAC did not dare to ask Datatrail why they were there yet not submitting their bids.

Adding insult to injury, Datatrail instantly bagged the project without presenting any Class 'A' documents. Deadline to submit all the original legal documents as required by DND BAC like the Income Tax Stamped 'Received' by the BIR, etc. was ignored by Datatrail. And Proof of Evidence on Datatrail's annual tax payment in Y2006 was P55,000, so how come they pass all the Eligibility Requirements ? Where in the world are the Datatrail's Class 'A' legal documents, all original ? The answer is NONE. They submitted nothing to DND BAC but a single piece of paper, the so called 'JVA' turned the tide. With this was an immediate announcement to all the bidders that they bagged this AFP project !

DND BAC WAS SO UNFAIR: If the non discretionary pass/fail criteria will equally apply implemented on Datatrail as well, this should result in the automatic disqualification of this bidder. Datatrail does not even deserve to be called a 'bidder' because they bypass the Stage 1 and 2 bidding process, yet the DND BAC still allowed Datatrail's entry even after all the bidding process Stage 1 & 2 had already taken place.

Also, the IRR law states that bidders cannot just modify their status from lone bidder into JVA in any of the bidding stages. There's massive “irregularities” in the conduct of the bidding process, one of the genuine bidders had this comment, "Sobra nang garapal ang ginagawa sa atin ng mga ito (DND BAC), just imagine, pinahirapan na nga tayo sa Stage 1 & 2, yun pa palang di naman kasali hindi naman bidder, walang dalang papel yun pa ang mananalo !"

Another controversy was the sharing of resources and representatives. The bidder had the same legal representative as that of another bidder. In this bidding, Jess Trinos, official representative of Alcatel was competing against Noel Guevara, official representative of Ceragon. At the same time, during this bidding process Stage 1 and 2, we often bumped into them outside, they were together representing themselves as 'official representatives' of Ceragon both promoting selling Ceragon to Sun Cellular, etc. So, there's unlawful collusive practice and massive price manipulation going on among these bidders designed to establish a bid pricing. This is direct violation of Philippine Procurement Act and IRR of RA9184 that states no single representative for both bidders. Alcatel and Ceragon should be reprimanded for using the same representatives.

There's also one striking very unusual procurement mode bidding patterns here: Bidding schedules and deadline for submission and opening of bids were changed from time to time dragged on too long to accommodate the favored bidder, Ceragon. <<ref.: (iteab)="" 1st="" 20="" 2005="" 25="" 2nd="" 8="" a="" and="" announcement="" apply="" aug="" be="" bid="" eligibility="" for="" hanging="" invitation="" moved="" new="" oct="" released.="" sep="" stage="" that="" the="" to="" will="" with="">> Finally, we figured out there's really this DND BAC's plan with Datatrail was obviously bias: they will use Ceragon as the JVA partner so Datatrail could win; otherwise, a re-bidding would (again) take place until DND BAC get what they want, their favored supplier obviously was "Datatrail !"


QUESTIONABLE CREDIBILITY

DND BAC's dishonesty, abuse of confidence, fraud, betrayal of public trust, lack of transparency, grave misconduct, bid rigging and neglect in the performance of their duties:
1. STAGE 1 & 2 Bidding Process: DND BAC did not conduct a detailed evaluation of Datatrail papers Class 'A' Eligibility Docs using the non-discretionary criteria and Check the COMPLETENESS of the bid. Why ? The answer is simply because Datatrail submitted nothing. So, there's nothing to check and evaluate.
2. POST QUALIFICATIONS: DND BAC failed to verify, VALIDATE and ascertain all statements and documents submitted by Ceragon and Datatrail JV to ensure that EACH MEMBER of the joint venture have submitted the required Eligibility Class 'A' Documents. Up until now, in the minds of the "genuine" bidders, only Alcatel, Lucent, Ceragon and Nera documents were evaluated and rated 'Passed.' These four bidders were rated 'Passed' because they participated the bidding process Stage 1 and 2 and 'Passed.' Then, one JVA paper suddenly appeared, out from nowhere is...

AN INSTANT MAGICIAN: DND BAC proclaiming Ceragon "and Datatrail" as winners. Nobody in DND BAC, no one dared ask the Datatrail Class 'A' Eligibility Documents because the bidders were intimidated. Bidders were expecting DND BAC would exercise their functions fully well, that DND BAC will do all the questioning about Datatrail's papers, to establish a 'fail playing field' -- but sadly, this NEVER HAPPEN ! It was supposed to be the primary role of the DND BAC to ask Datatrail their Class 'A' Legal Documents in front of the other bidders. To this day, the bidders knew Datatrail never particiapted the bidding process Stage 1 & 2, so bagging the project without the submission of these Class 'A' Legal Documents was illegal ! Such fraud and illegal acts committed by DND BAC: they allowed Datatrail to submit nothing except that single document, JVA. to bag this AFP project. In their JVA arrangement, it is 90% Datatrail / 10% Ceragon ownership or interest of the JVA, this means 90% of the profit goes to Datatrail and 10% goes to Ceragon. In this JVA, ONLY Ceragon's Class 'A' Legal Documents were evaluated, getting only the 10% of the deal; Datatrail's Class 'A' Legal Documents were ALL missing (how can they support this project if Datatrail has no papers, Datatrail was not even an accrediated vendor for Globe Smart and Sun Cellular to this day so where did they gather the data that Datatrail had big telecom projects as required by law for them to qualify and to bid; IRR of RA 9184 to qualify, Datatrail MUST HAVE THESE QUALIFICATIONS "with similar contracts" consisting of 85% microwave radios and 15% pabx MUST PROVIDE some Proof of Evidence to have satisfied at least 50% of PhP 447,360,000.00 ABC within 3 years and "Certificate of Acceptance" in CY2003 CY2004 CY2005; also, no financial documents, no income tax payment stamped 'Received' by the BIR, no PROOF of telecom projects yet Datarail is getting 90%of the deal. Such a "Big Money Pot" should really be very very attractive to the DND BAC as well !
3. DND BAC should automatically disqualify Datatrail, a P55,000 taxpaying company; no Eligibility Class 'A' Documents presented during Stage 1 & 2. If for some reason, DND BAC could produce the Datatrail Class 'A' Eligibility Documents since for sure they will now be questioned, a SENATE fact finding investigation would be necessary to check the authenticity of their legal documents and VALIDATE with BIR Stamped 'Received' their SALES and TECHNICAL RECORDS from their supposed "existing" customers because NONE of the 'genuine' bidders knew Datatrail was a telecom company esp. for CY2003, CY2004 and CY2005 as the bid's reference date. We have all the reason to believe Datatrail's documents will be fabricated since we don't see them in the telecom industry, no supply record in telcos and carriers. So, why did the DND BAC 'internally' rate 'Passed' Datatrail's documents if the bidders were not even allowed by DND BAC to see them witness during Stage 1 & 2 whether Datatrail submitted all the Class 'A' Legal Documents or not because Datatrail did not participate the bidding process Stage 1 & 2.. Here's the summary of what the rest of the bidders comments, "Sila sila na lang sa loob ang nakakaalam niyan. .. This is exactly LUTONG MACAW !... Napakagarapal, DND BAC pa man din ang gumagawa ng mga illegal sa AFP FCS bidding na ito... Kasi harap harapang lokohan lang pala ang bidding na ito as in daylight robbery kung magtrabaho ang DND BAC na ito... Wala pa yung bidding ALAM NA NILA ANG MANANALO... Kaya pala reset ng reset ang bidding schedules kasi hirap na hirap na silang ipanalo MAY MANOK PALA SILA kaya BRINASO na lang talaga nila ang PAGPANALO sa Datatrail, siniguradong bago matapos ang term nila as DND BAC, naareglo na !"
4. DND BAC should not allow JVA with Datatrail, a sudden change of status of Ceragon after the bidding process Stage 1 and 2 had taken place, per IRR of RA9184, doing so is illegal !
5. DND BAC without any valid reasons, repeatedly cancel or move the bid due dates INTENTIONALLY DELAYING THE BID DUE DATES so their favored supplier, Ceragon, could catch up with all the bidding requirements. In return to Ceragon's favor, is the sudden JVA with Datatrail so both of them win. This is another controversy proof of evidence that there's strings attached: At least three bidders, Alcatel, Ceragon and Datatrail were in collusion with the DND BAC Officials, who overly manipulated this bidding to bag this project.

Interestingly, Ceragon and Datatrail, were two NEW bidders who BOTH win this AFP project the very same time these NEW PEOPLE in DND BAC got their respective appointments, these were also the VERY SAME DND BAC OFFICIALS who declared the 'highly questionable' failure of bidding in prior bidding events, also happened in early 2005. The VERY SAME DND BAC OFFICIALS who said, "Because of failure of bidding, we will invite MORE bidders this July (2005) for a fair playing field."

Here's our question to DND BAC: "Is this the fair playing field that you were talking about ? Ang pinanalo ninyo, yung kumpanyang walang kadala dalang mga dokumento kundi JVA lang? Binigay lang ng Datatrail ang JVA sa inyo (DND BAC) kung kelan tapos na ang bidding (Stage 1 & 2) walang nakakita sa aming mga bidders kung paano napasama sa listahan ninyo si Datatrail, puro illegal shortcuts naman lahat ng ginawa ninyo pag si Datatrail na, samantalang yung mga dokumento namin lahat dumaan sa butas ng karayom; si Datatrail, di naman talaga kasali sa bidding pero ang palabas ninyo sila ang nanalo, ano ba iyan, panalo kahit walang mga dokumento, hindi man lang nag-Bid ?" Ano ba itong AFP FCS bidding na ito, ungguyan ?

In this AFP FCS bidding, the DND BAC obviously FAILED to implement the latest IRR of RA 9184 on JVA, as amended by Memorandum Order No. 176, dated 27 June 2005, published in the Official Gazette on 29 August 2005 !

DND BAC failed to implement the latest IRR of RA 9184 on Datatrail-Ceragon JVA the law states that, "EACH MEMBER of the joint venture SHALL SUBMIT (AND PASS !) all the required Eligibility Documents." So, Datatrail MUST comply "SUBMIT/PASS" all Eligibility Documents first, just like what the other bidders did. Must SUBMIT THEM infront of the other bidders also, so we can validate ALL their original Class 'A' Legal Documents !

IMAGINE THAT PIECE OF PAPER: A piece of paper called J-V-A, imagine how DND BAC can declare a company calling themselves 'Datatrail' as the instant W-I-N-N-E-R of this PhP 447,360,000.00 AFP FCS Project, W-I-N-N-E-R without any documents ! (No sweat !)



For Senate Inquiry, please !</ref.:>

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

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