DOTC snubs Stradcom, sets auction of IT services

MANILA, Philippines – Despite an existing IT services contract for transportation agencies, Transportation Secretary Mar Roxas is bent on auctioning off the contract this 2012.

Private firm Stradcom has an exclusive build-operate-contract with Department of Transportation and Communications (DOTC) that the firm was eyeing to renew when the contract expires in February 2013.

“Today, about a year prior to the expiration of the existing contract with Stradcom, we are announcing that pursuant to Section 4.1 of the contract, the DOTC will not exercise its exclusive option to extend the said contract,” DOTC secretary Mar Roxas said in a statement on Monday, February 13.

“The DOTC will be bidding out a new contract for the IT services of the DOTC/LTO/LTFRB shortly,” he said.  

At stake is a system that maintains the database of all vehicles registered with the Land Transportation Office (LTO), and the millions of driver’s license holders in the country.

The LTO awarded the contract to Stradcom in 1998, but the firm has been through ownership struggle and, in the process, some P2 billion in “unauthorized” interconnectivity fees that were billed from 2007 to 2011 against the agencies were unearthed by the Commission on Audit.    

“The technology has significantly changed over the years with the cost of computer hardware, software and IT services significantly coming down. They’ve earned about P10 billion in the last 13 years by collecting fees in using the database owned by the government. The government has learned its lesson from previous LTO IT service contract and will now write the Terms of Reference specifying the exact and accurate requirements in order to identify high quality (IT) solution to be used by DOTC/LTO/LTFRB”), ” Roxas said.

“We’re entitled to start on a new page,” the transportation secretary added. – Rappler.com