MANILA, Philippines – The National Food Authority’s (NFA) government-to-government procurement committee yesterday awarded the supply contracts for 500,000 metric tons (MT) of the programmed importation for buffer stocking.
Vietnam won the majority share, with a contract to supply a total of 300,000 MT awarded to Vietnam Southern Food Corporation, while a supply contract totaling 200,000 MT was awarded to Thailand, represented by its Department of Foreign Trade.
The buffer stock will be used for the country’s mandatory buffer stocking requirement for the lean season that starts in July. The government is required to maintain a buffer stock of at least 30 days although the ideal is 90 days.
The NFA received offers for the procurement of 250,000 MT of well-milled, long grain white rice at 15% brokens and 250,000 MT at 25% brokens.
Broken rice is a rice grade consisting of grains broken in the milling process.
The NFA Council is set to award the supply of 150,000 MT to Vietnam at 15% brokens and another 150,000 MT at 25% brokens.
Thailand is set to supply 100,000 MT at 15% brokens and another 100,000 MT at 25% brokens.
Thailand offered $441(P19,447) per MT against the government’s budget of $442.9 (P19,459) per MT at 15 % brokens and $421 (P18, 565) per MT against the government’s budget of $425.85 (P 18,779) per MT at 25%.
To win the contracts, Vietnam lowered its initial offers of $442.5 (P19,513) per MT at 15% brokens and $424.50 (P18,720.14) at 25% brokens to match Thailand’s offers, while being able to supply more volume.
The supply contract requires that half of the total importation volume should be delivered to the Philippines not later than March 31, 2015, while the other half should be delivered not later than April 30, 2015.
Thailand will not be able to supply the required volume because of supply commitments to other countries said Malou De Leon, marketing officer of the commercial affairs of the Royal Thai embassy.
Under the terms of reference, the next best bidder has the option to match the offer of the best bidder to supply the balance of the volume if the former is unable to do so.
The NFA Council is set to approve the award on March 2 and should issue the notice of award not later than March 3, said procurement committee chairman Piolito Santos.
The winning bidders should be able to sign the contract between March 4 to March 10, after which, they will be able to proceed with the delivery. – Rappler.com