DPWH: Govt saved P577M due to open bidding

Published February 7, 2011 12:17pm

With the elimination of negotiated public works contracts, the government saved P577 million in the second half of 2010, the Department of Public Works and Highways (DPWH) said on Monday. DPWH Secretary Rogelio Singson said now that the open bidding setup is in place, they expect to generate more savings in future government projects. â€œThe amount of more than half a billion in government funds is just for 29 projects bid out in the Central Office. We expect to generate much more savings from the bidding of all DPWH projects nationwide," Singson said in a news release posted on the DPWH website. He said the savings were derived from the 29 projects procured through open and competitive bidding conducted only in the DPWH Central Office since July 2010. Of the 29 projects, 25 projects were Post â€œOndoy" and â€œPepeng" Short-Term Infrastructure Rehabilitation Projects (POPSTIRP). The 25 POPSTIRP roads, bridges and flood control projects bid out have a total approved budget for the contract (ABC) of P1.084 billion. However, the total bid price was only P838.8 million, generating savings of P245.3 million. Singson canceled 19 POPSTIRP negotiated contracts worth P934.1 million upon assuming office in July 2010. Meanwhile, the DPWH noted other projects that garnered the biggest savings with the open bidding included:

the Plaridel Bypass Road (part of the Contract II package) with P163.2 million savings from its approved budget;

the C-3 (Araneta Avenue)/Quezon Avenue Interchange Project (part of the Contract II package) with P104.5 million savings;

the Urgent Bridges Construction Project for Rural Development (part of Contract packages II-A and II-B) with a total approved budget of P989.55 million and total bid amount of P925.79 million generating savings of P64.76 million. â€œWe expect to save more government funds as we institutionalize reforms in the bidding process and also pursue the transformation program in the DPWH," Singson said. Rotation of personnel Singson also ordered the rotation of the Bids and Awards Committee (BAC) chairpersons from among the third ranking permanent officials in the central, regional and district engineering offices. Singson believes this will ensure the integrity of the procurement process in the DPWH and prevent undue fraternization of the BAC chairmen with the contractors. The renewal of existing designations of BAC chairmen beyond their fixed term of one year will need the approval of Singson. In the meantime, Singson said he continues to seek the help of civil society organizations, NGOs and church-based organizations to assure that DPWH does the right projects, at the right cost and the right quality. â€“ VVP, GMA News

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