MANILA, Philippines – The country's Land Transportation Office (LTO) has agreed to settle its P8-billion debt to its IT provider for 18 years, Stradcom Corporation, as it shifts to a new service provider in one to two years.
After years of unsettled disputes, the Department of Transportation (DOTr) said in a statement on Tuesday, December 13 that its attached agency LTO signed last December 9 a one-year phaseout agreement with Stradcom.
This means Stradcom will have to organize, transfer, and turn over all data to the LTO in one year.
Simultaneously, LTO will set bidding processes and conditions for a new auction of its IT system.
DOTr said it will take one to two years to change an IT provider, as the process will include data migration.
As part of the agreement, the department will settle the P8-billion debt owed to Stradcom.
This was after the past administration failed to make regular payments of fees.
The department said it will likewise allow Stradcom to join the bidding as it is open to all qualified bidders who are capable to provide requirements set in the terms of the contract.
Years of disputes
The auction of P8.2-billion LTO IT system was ordered in 2011. (READ: BIR to Stradcom: Don't blackmail govt)
In 2012, the transportation department split the contract into two, due to bidders’ failure to qualify for the contract’s broad scope.
The contract for software and data components was worth P3.4 billion, while the hardware component contract was for P4.8 billion.
The bidding was then delayed when the Quezon City Regional Trial Court issued a temporary restraining order (TRO) due to internal ownership disputes in Stradcom.
In February 2013, Stradcom's contract expired while the TRO was still in effect.
To avoid disruption of transactions and reversion to manual operations, the government extended Stradcom's contract through emergency procurement under the Government Procurement Reform Act.
The court then lifted the TRO in the same year and ruled that the government may proceed with the bidding for a new IT service provider.
The Court of Appeals upheld the lower court's decision in March 2016.
The auction of a new IT service provider is aimed at making it easier for authorities to recover stolen vehicles, trace smuggled vehicles, prevent double registration, and monitor unregistered vehicles. – Rappler.com