Rigged bidding denied in copter acquisition

By Victor Reyes

News Malaya, Wednesday, 06 October 2010

MILITARY officials yesterday dismissed allegations that technical specifications of aircraft being acquired under the Armed Forces modernization program were tailored to favor a specific supplier or manufacturer.

The bidding processes for the acquisition of seven attack helicopters for the Air Force, worth PJ.2 billion, and two multi-role helicopters for the Navy, worth P860 million, were suspended by Defense Secretary Voltaire Gazmin.

Allegations of collusion between defense officials and suppliers were aired last month by Representatives Teddy Casillo and Tomas Osmena during a House hearing on the DND's proposed budget for 2011.

The bids for the attack helicopters were opened last month and only one firm, PZL Swidnik of Poland, submitted an offer. The opening of bids for the Navy helicopters was supposed to be held last Monday. Swidnik is again participating in the bidding.

Swidnik, said to be the largest helicopter manufacturer in Poland, has bagged a number of DND contracts, including last year's P2.8 billion worth of eight combat utility helicopters for the Air Force.

Air Force spokesman Lt. Col. Miguei Ernesto Okol said technical specifications are prepared by an Air Force project management team "based on doctrine and based on actual operational use."

Okol also noted that after completion of the preparation of the technical specifications, the output is forwarded for review of the Air Force Weapons Systems Board. This then goes to the AFP capability development planning team and then to the AFP Weapons Systems Board.

"Once it's ironed out at the AFP, meaning properly explained, this is kicked upstairs," said Okol, referring to the DND which supervises the bidding process.

"They are the ones inviting (bidders) and the Air Force is supposed to be one step backward already," he said.

"It is impossible for us to rig that (technical specifications) to cater to anybody's requirements," Okol also said.

Lt. Col. Edgard Arevalo, Navy spokesman, said the technical specifications for the Navy's multi-role helicopters were provided by the Navy, considering the peculiarities of Fleet-Marine operations that require such assets in the conduct of various operations, including counter-terrorism and search and rescue.

KL firm eyes dev't of Navy property

By Gil Cabacungan

Philippine Daily Inquirer, Wednesday, 06 October 2010

A MALAYSIAN property developer has emerged as the first entity to take a bite into the offer of President Benigno Aquino III to lease and develop the Philippine Navy's properties.

Rear Admiral Danilo Cortez told reporters after a budget hearing in the Senate that Malaysia Resources Corp. Berhad (MRCB) has formalized its offer for the 22-hectare Fort Bonifacio Naval station which it planned to convert into a mixed use, commercial, office and residential project. The property includes a golf course, a hospital, housing units for the soldiers and officers and the headquarters of the Philippine Marines.

Cortez said the MRCB submitted its letter proposal dated Sept. 10 this year to Aquino who has ordered the Department of National Defense to evaluate the unsolicited proposal from Malaysia.

"It's still in the evaluation stage, there are still a lot of requirements. We will bid it out in one year," said Cortez who noted that the naval station property along Roxas Boulevard was a separate deal.

In his State of the Nation Address, Aquino bared his administration's thrust toward public-partnership projects for major capital projects including the monetization of military assets to bankroll the modernization of the Armed Forces Aquino hoped to raise at least $100 million from the 5O-year lease of the military assets. "We are offering all our assets to maximize their potential," said Cortez.

Cortez said that while the military ngets lease offers for its properties, it has already started the relocation of its major service units to the AFP general headquarters in Camp Gen. Emilio Aguinaldo in Quezon City.

Palace studies Malaysian firm's offer to lease Navy property

BY MBC

Tempo, Wednesday, 06 October 2010

An offer of a Malaysian company to lease the 33-hectare Philippine Navy (PN) property at Fort Bonifacio Taguig is now being evaluated by Malacanang, Rear Admiral Danilo M. Cortez told the Senate yesterday. Appearing before the Senate finance committee chaired by Sen. Franklin M. Drilon, Cortez said the lease under the label of Public Private Partnership (PPP) of the Aquino administration was expected to bring in about 1"1 billion annually to the national coffers as "profit sharing." Cortez identified the foreign firm as Malaysian Resources Corporation Berhad MRCB).

In his July 26 State of the Nation Address (SoNA), President Benigno S. Aquino III disclosed his plan to lease out the Navy property to a private sector under his PPPscheme. Cortez said the lease papers, technically termed as an "unsolicited proposal," are now with Executive Secretary Paquito OChoa. Senate President Juan Ponce Emile, former Defense minister of the late President Ferdinand E. Marcos, cautioned Armed Forces of the Philippines (AFP) and Department of National Defense (DND) that developers would "not give you a free ride" as the PN property is a very valuable property.

PN scorecards: Accomplishment

By DR. JESUS P. ESTANISLAO
Manila Bulletin, Thursday, September 22, 2010

Service to constituency is normally the last perspective, which all other perspectives serve. This is true of the Navy Sail Plan, which prefers to label this last perspective as “accomplishment.”

Two priorities are listed under the accomplishment perspective. The first is a “secured maritime environment.” For the Navy, the proposed initiative to pursue this first priority is to set up an efficient data collection and reporting system on naval operations. Such system should be able to highlight progress using the business confidence index (maritime). This index is now at 20 percent (in 2010) and is targeted to rise to 25 percent (2011), 40 percent (2012 and 2013), and finally to 54 percent (2020). The other index such a system would highlight is the naval operations index. This one starts at an even lower base, and is targeted to rise to 6 percent (2011), 12 percent (2012), 18 percent (2013), and finally 85 percent (2020). This is a dramatic jump, an indication of the quantum leap the PN intends to execute through its Sail Plan.

Such a dramatic jump gives an indication of the distance the Navy intends to cover through its Sail Plan. A lay observer has no idea what goes into a naval operations index. But from the targets set for 2011-2013, one gets the idea that the index is currently at a very low level, and that it will take enormous effort, involving considerable commitment and resources, to lift such an index up, let alone to reach a high of 85 percent by 2020. By this, one appreciates the value of a measure that needs to be specified in any performance scorecard: It marks out where an institution is, indicating where one is currently; and it marks out a future milestone that needs to be reached, particularly at the end of the Vision period. On this measure alone, the naval operations index, the performance scorecard is calling for a genuine breakthrough result for the Navy to deliver in the next 10 years.

The second priority under the accomplishment perspective is “highly satisfied stakeholders.” The initiative the Navy proposes to undertake to secure this priority is to implement a dynamic strategic communications plan. The plan should result in an average satisfaction rating on the part of internal stakeholders (i.e. Navy personnel): On a scale of 1 to 10, the rating is targeted to be at 6 during the period 2011-2013. It should then gradually rise until it reaches nine in 2020. There are external stakeholders too: Their satisfaction rating also has to be tracked. At present, the Navy does not have such a satisfaction rating involving its external stakeholders: This has to be developed and subsequently surveys have to be undertaken regularly. These surveys need to be given due importance, especially in light of the Vision in the Navy Sail Plan: That Vision calls for a strong and credible Navy that our maritime nation can be proud of. The Filipino people must come around to regard their Navy highly, and because of the Navy’s accomplishments they should end up becoming proud of their Navy.

The strategic communications plan initiative is a recognition on the part of the PN that it is impossible for it to achieve the targets set out in the Sail Plan without the support and active involvement of other sectors of Philippine society. The general public has got to know what the Navy is supposed to do, and what resources the Navy should be able to count upon in order to carry out its Mission and realize its 2020 Vision. Indeed, the Navy’s rapport with the citizenry has to be deepened and constantly nurtured: The Navy has to keep investing in a well-thought-out and smartly-executed outreach program pitched to all Filipinos. It is the Navy’s good fortune that the people it serves are open; it should not be difficult, therefore, to win over their hearts and minds: In fact, they are craving for an institution they can genuinely be proud of, and the Navy is a deserving candidate for the people’s trust and affection, especially if it sails far and wide with the use of its Sail Plan.