DOTC not renewing Stradcom contract

Manuel “Mar” Roxas II, secretary of the Department of Transportation and Communications (DOTC), said on Monday that the government prefers to start on a clean slate when it enters into a new contract to develop and manage the integrated DOTC-LTO-LTFRB Information System project sometime next year.

^Roxas

“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,” Roxas said.

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

The new bidding will be awarded six months prior to the expiry next year, so that a new system will be in place well ahead of the expiration, the government said.

“We’re entitled to start on a new page,” Roxas said. “Bottomline, we have the opportunity now to learn from the lessons of the past contract, and adopt a new and better (IT) system that would enhance [licensing and registration] services for all the people.”

Roxas said Stradcom 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.

Roxas added that it is not the government’s obligation to renew the existing IT service contract, but rather it is entitled to a new agreement, and start on a new and clean slate.

Before the contract with Stradcom lapses in February next year, the government has the obligation to prepare and draft a new TOR. — Newsbytes.ph