Only one bidder qualifies for military’s P5.3-B aircraft deal

MANILA, Philippines – Spanish firm EADS/CASA-Airbus Military was declared on Monday, January 13, the only eligible bidder to the P5.3 billion deal to supply the Philippine Air Force (PAF) 3 brand new medium lift fixed wing aircraft.

This was declared by Defense Undersecretary Fernando Manalo, even as an official of a losing bidder Alenia Aermacchi stood up to remind the bid and awards committee (BAC) of the firm’s continuing protests against supposed irregularities in the bidding process and the record of the bidders.

The purchase of the aircraft is one of the big ticket projects under the Armed Forces modernization program. Airbus Military commits to supply the miltary C295 planes for P5,288,609,983.99 or lower than the approved budget. 

C295 is like a smaller version of the already familiar C130, which saw action in the Zamboanga City siege and government response to Typhoon Yolanda. It has an open ramp at the backside to allow troops an easy drop from above. It can carry up to 9 tons of payload or up to 71 personnel. C130s can carry up to 120 personnel. 

“There are specific loading requirements as well as distance of nautical miles that can cover when it’s flying. There’s a minimum set of standards for a medium lift aircraft,” explained Defense Assistant Secretary Patrick Velez.

Aside from the C-295, the military was initially looking at plane models C27-j and possibly C130. The aircraft is meant to support military operations for territorial defense, internal peace and security plan, internal security operations, disaster response, and national development.

Stained record?

Military Airbus passed the technical and financial requirements of the Department of National Defense(DND)-BAC in the second bidding held on January 13. It will now proceed to post-qualification, a process where the Philippine government will travel to Spain to check the capability of the company to supply the aircraft.

“The post qualification is intended to determine whether the winning bidder has the capability to undertake the project, once the project is awarded,” said Manalo.

In its papers, EADS Casa claims to have supplied to at least 17 countries. But its C295 figured in a controversy in 2012 when the Czech military returned the aircraft because of some defects. 

The Czechs wanted to deploy the aircraft in Afghanistan but its DAS anti-rocket systems and the plane’s navigation systems were found defective. When the aircraft couldn’t be repaired, EADS CASA replaced them. 

CASA’s C295 also crashed in Poland in 2008. At least 20 were killed but invesgation showed it was pilot error, according to reports. 

Only two bidders submitted their bids on Monday. Airbus Military and PT Dirgantara Indonesia, which was disqualified because the planes it offered did not comply with the DND requirements. The Indonesian firm said it would file a motion for reconsideration. It has 3 days to file it.

Alenia Aermacchi participated in the first bidding and attended the second to verbalize its complaints. Velez said they would “wait for proof” and for the firm to formalize its complaints. 

Irregularities?

The Italian firm questioned the source of funding, an issue that DND dismissed. “The funding for the project has already obligated in favor of the modernization trust fund, which means the funding is valid and existing,” said Velez.

The firm also questioned supposed links between Airbus Military and losing bidder PT Dirgantara Indonesia. This will be checked in the post-qualification process.

The project cannot be awarded to Airbus Military unless the complaints are settled. “We will not be able to provide any notice of award until and unless all pending complaints will have to be decided by us. But it will necessitate an actual complaint filed by this entities who have complaints,” said Velez.

Controversies continue to haunt the AFP modernization program. Last year, South Korea’s Kolon Global Corporation accused the DND-BAC of favoritism. Kolon was the lowest bidder, but it was declared non-compliant after the post-qualification. (READ: Controversies, delays in AFP multi-billion modernization)

Manalo said he is satisfied with the bidding process. “In projects involving these types of planes, we cannot expect a lot of participants. In fairness to the technical working group they did their best in making a market research,” Manalo told reporters. – Rappler.com