RP Navy in dire need of choppers

By Dona Pazzibugan

Philippine Daily Inquirer, Wednesday, 06 October 2010

THE PHILIPPINE Navy has no helicopters left since its remaining helicopter crashed off Zamboanga nearly two months ago killing two junior but seasoned Navy pilots.

Navy spokesperson Lt. Col. Edgardo Arevalo said he could not stress enough the "urgency" of their need for helicopters after the Department of National Defense suspended the bidding for an P851-million Contract for two new helicopters.

"We hope that the issue can be resolved really soon. We have an acute need for air assets like helicopters. Right now we do not have any helicopter," he said. On Aug. 17, a Navy Bolkow helicopter PNH411 crashed off Zamboanga City in the middle of a training session.

Three passengers survived while the remains of pilots Lt. Tristan Joseph Corpuz and Lt. Junior Grade Jayrald Tamayo were recovered two days later.Arevalo said they need helicopters for search and rescue operations, resupply and deployment of personnel.

"The Navy however, defers to the decision of higher headquarters for a process that may be required for the procurement of these much needed aircraft for the Naval

Air Group," he added. Defense Secretary Voltaire Gazmin ordered a 30-day probe into a possible collusion between defense officials and a supplier since the same company which had already cornered two Air Force contracts worth P6 billion emerged as one of only two bidders for the Navy contract.

Aside from suspending the bidding for the Navy contract, Gazmin also deferred the award to PZL Swidnik SA of Poland of a P3.2-billion contract to supply seven Air Force attack helicopters. Swidnik also won the P2.8 billion contract to supply eight Air Force combat utility helicopters.

Navy, Air Force downplay ‘collusion’ over P4 billion worth of helicopters

By Mario J Mallari

The Daily Tribune News, Wednesday, 06 October 2010

Both the Navy and Air Force leaderships yesterday downplayed collusion between their respective technical working groups that identified the specifications for acquisition of P4 billion worth of helicopters and the suppliers which was the basis of the Department of National defense (DND) to defer the procurement process.

“It isn’t possible to influence the specs to suit a particular manufacturer in that bottom-up process,” said Navy spokesman Lt. Col. Edgard Arevalo.

Arevalo cited the budget allotted to the Armed Forces of the Philippines (AFP) as a major factor in the procurement of helicopters. The DND has allotted P860 million for two units of multi-role helicopters.

The contract was supposed to have been bid out last Monday but Defense Secretary Voltaire Gazmin deferred the process, following reports of alleged collusion between the technical working groups and the suppliers as revealed by Reps. Teddy Casiño and Tomas Osmeña.

Aside from the procurement of the Navy helicopters, the P3.2 billion contract for seven units of attack helicopters intended for the Air Force was also deferred for similar reason.

There were allegations that the specifications provided were tailor-fit to only one supplier, apparently the PZL Swidnik SA, said to be the largest helicopter manufacturer in Poland. The firm was the only one left in bidding for the P3.2 billion contract after five other reputable bidders backed out from the process.

Last Monday, DND-Bids and Awards Committee Chairman Assistant Secretary Ernesto Boac announced the deferment of the P3.2 billion contract for seven units of attack helicopters for the Air Force which is now in its post qualification stage and the cancellation of the scheduled bidding for P860 million helicopters for the Navy.

Boac cited statements made by Casiño and Osmeña and media reports about alleged irregularities.

“Given the specs, there certainly are other companies who can comply, but the budget that the AFP has for the helicopters could be that major delimiting cause why other bidders may have backed out as in this case,” said Arevalo.

Arevalo explained that the Navy provided the technical specifications of the helicopters considering the peculiarities of Fleet-Marine operations that require the said air assets.

“The specs originating from the inputs of the end users, like the Naval Air Group and the Sailors and Marines in the frontline, were submitted to higher headquarters thru channel — passing through the Technical Working Group to Weapons Systems Board of the Navy — all the way to similar offices at GHQ (general headquarters) going to DND,” said Arevalo

For his part, Air Force spokesman Lt. Col. Miguel Ernesto Okol maintained that the Air Force technical working group or the project management teams (PMTs) based their recommendations on the current requirements of the command.

“The project management teams that has crafted this basing to current operational requirements, has based it on flight, actual flight experience, there is old doctrines that is currently used… so they came out point by point,” said Okol.

On the alleged collusion, Okol said “those are allegations, those are speculations but the Air Force PMTs are considered professional body of young pilots, very senior in flying experience, attack pilots, as far as the attack helicopter is concerned, so they based it on doctrines and actual operational requirements.”

While both Okol and Arevalo admitted that the delay on the acquisition of much-needed helicopters was not expected, they supported the deferment move if only to promote transparency in the military procurement processes.

“The Navy, however, defers to the decision of higher headquarters for a process that may be required for the procurement of these much-needed aircraft for the Naval Air Group,” said Arevalo.

For his part, Okol said “we just look at that in a way that it is just an added procedure probably established by no less than the secretary of national defense and perhaps to put some closure into the whole activity.”

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.