STRADCOM Corporation, the information technology (IT) provider of the Land Transportation Office (LTO), will request the Department of Transportation and Communication (DOTC) to reconsider its decision not to renew its Build-Operate-Own contract which will expire in February 2013.
As per its contract, Stradcom must advise DOTC of its intention to renew one year before the contract expires. The contract allows the corporation an option to renew for another ten years.
Stradcom submitted its proposal to renew the IT contract last January 31.
The IT firm, recognizing the impossibility of creating an entirely new system from scratch should the project be awarded to another proponent, offered to either extend or renew the contract for a mere two to three-year transitory period to prevent reverting to manual operations.
Last February 13, however, the DOTC informed Stradcom that it is not renewing the contract, nor accepting the offer of a brief renewal period.
Stradcom spokesperson Margaux Salcedo said the corporation is ready to participate anew in any bidding for the LTO IT project.
“Stradcom urges the DOTC to review the proposal because it is really generous and most advantageous to the government and the transacting public,” Salcedo said.
Generous offer
The renewal proposal includes at least P 2 billion in fresh investments. Stradcom’s proposal consists of P1 billion worth of rehabilitation of existing LTO sites; another P1 billion worth of upgrades for existing IT infrastructure, systems and facilities especially the use of cloud computing; training programs for LTO employees; the development of online license renewal for OFWs; online registration for drivers licenses and motor vehicles; a mobile ticketing system; the development of the LTO website; biometrics verification for drug testing sites; and even hardware to provide internet access areas to the public.
On top of this, Stradcom offered the DOTC an annual revenue share of P200 million or a total of P2 billion for the duration of the contract.
Stradcom also offered to supply drivers licenses, which will result in an annual savings of P300 million for the government or P3 billion for the ten-year duration of the contract.
Salcedo said that the DOTC should also look at the achievements of Stradcom.
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