LTO eyes rescinding contract with online service provider

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LTO eyes rescinding contract with online service provider
MANILA -- The Land Transportation Office (LTO) is now studying the possibility of rescinding its contract with German information technology contractor Dermalog, which is behind the agency’s online portal Land Transportation Management System (LTMS).
MANILA -- The Land Transportation Office (LTO) is now studying the possibility of rescinding its contract with German information technology contractor Dermalog, which is behind the agency’s online portal Land Transportation Management System (LTMS).
House Transportation Committee Chairman and Antipolo 2nd District Rep. Romeo Acop questioned the existing contract of LTO and Dermalog during its hearing on Thursday.
House Transportation Committee Chairman and Antipolo 2nd District Rep. Romeo Acop questioned the existing contract of LTO and Dermalog during its hearing on Thursday.
During the Transportation Committee meeting, LTO chief Assistant Secretary Vigor Mendoza II said they have consulted with the Office of the Solicitor general on the possible legal moves that be taken with regards to the Dermalog contract.
During the Transportation Committee meeting, LTO chief Assistant Secretary Vigor Mendoza II said they have consulted with the Office of the Solicitor general on the possible legal moves that be taken with regards to the Dermalog contract.
“We immediately convened with our lawyers with the Office of the Solicitor General in order for us to be guided as to the next legal steps and our legal options as far as the issues raised by the honorable congressman that includes the possibility of rescission and what would be the steps necessary should that be the direction given to us by the DOTr,” Mendoza said.
“We immediately convened with our lawyers with the Office of the Solicitor General in order for us to be guided as to the next legal steps and our legal options as far as the issues raised by the honorable congressman that includes the possibility of rescission and what would be the steps necessary should that be the direction given to us by the DOTr,” Mendoza said.
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According to Mendoza, they also consulted with the Department of Information and Communications Technology (DICT) to make sure that public service, including operation of motor vehicle registration and licensing, will not be affected in case they push through with rescinding the contract.
According to Mendoza, they also consulted with the Department of Information and Communications Technology (DICT) to make sure that public service, including operation of motor vehicle registration and licensing, will not be affected in case they push through with rescinding the contract.
“Our talks with DICT have been positive as far as making sure that public service is not affected. We are having a meeting next week ( with DOTr ) to determine our next steps,” Mendoza said.
“Our talks with DICT have been positive as far as making sure that public service is not affected. We are having a meeting next week ( with DOTr ) to determine our next steps,” Mendoza said.
“The DOTr agrees as far as the grounds for rescission of contract is concerned. They have reviewed, we have already provided them with COA report as early as last year,"he added.
“The DOTr agrees as far as the grounds for rescission of contract is concerned. They have reviewed, we have already provided them with COA report as early as last year,"he added.
The Solicitor General’s preliminary opinion, according to Mendoza, is that there are grounds for contract rescission.
The Solicitor General’s preliminary opinion, according to Mendoza, is that there are grounds for contract rescission.
“Before actual decision the contract provides for a mandatory arbitration proceedings,” Mendoza explained.
“Before actual decision the contract provides for a mandatory arbitration proceedings,” Mendoza explained.
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During the previous committee meeting, SAGIP Party-list Rep. Rodante Marcoleta cited the latest Audit Observation Memorandum (AOM) of the Commission on Audit (COA), revealed that the actual delivery period of milestones under the LTMS project from Dermalog exceeded the allowable time extension, which was not compliant with the Government Procurement Manual Volume 2.
During the previous committee meeting, SAGIP Party-list Rep. Rodante Marcoleta cited the latest Audit Observation Memorandum (AOM) of the Commission on Audit (COA), revealed that the actual delivery period of milestones under the LTMS project from Dermalog exceeded the allowable time extension, which was not compliant with the Government Procurement Manual Volume 2.
The COA reported that Milestones 1 and 3 of the LTMS were delayed from 165 to 756 days, respectively, despite multiple deadline extensions.
The COA reported that Milestones 1 and 3 of the LTMS were delayed from 165 to 756 days, respectively, despite multiple deadline extensions.
According to Mendoza, LTO does not have full access to the LTMS, so they could not make any modifications to the system without the assistance of Dermalog.
According to Mendoza, LTO does not have full access to the LTMS, so they could not make any modifications to the system without the assistance of Dermalog.
“I was just informed by our MID that we do not have full access to database. Our MID is here, they do it day to day…they can only view the data, the cannot modify the data as we want it,” Mendoza said.
“I was just informed by our MID that we do not have full access to database. Our MID is here, they do it day to day…they can only view the data, the cannot modify the data as we want it,” Mendoza said.
The notice of award to Dermalog was given on May 17, 2018 and the notice to proceed was given on May 28, 2018 for 6.5 months to complete the project and 5 years maintenance contract according to Mendoza.
The notice of award to Dermalog was given on May 17, 2018 and the notice to proceed was given on May 28, 2018 for 6.5 months to complete the project and 5 years maintenance contract according to Mendoza.
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But Dermalog’s legal counsel and resident agent to the Philippines, Atty. Anthony Peralta, explained that the turnover of the database would be done next year based on their contract with LTO.
But Dermalog’s legal counsel and resident agent to the Philippines, Atty. Anthony Peralta, explained that the turnover of the database would be done next year based on their contract with LTO.
“Together with the source code, the turnover of the database shall be done at the end of the contract which is at the end of the maintenance period which was confirmed by the representative from COA would be next year in 2025. As of the present, LTO has access to the LTMS database. It’s just that they don’t have the means to modify,” Peralta explained.
“Together with the source code, the turnover of the database shall be done at the end of the contract which is at the end of the maintenance period which was confirmed by the representative from COA would be next year in 2025. As of the present, LTO has access to the LTMS database. It’s just that they don’t have the means to modify,” Peralta explained.
Acop agreed with LTO chief that the turnover of source code for developed application modules would be owned by the procuring entity and shall be turned over to them immediately upon the completion of the project and not of the contract.
Acop agreed with LTO chief that the turnover of source code for developed application modules would be owned by the procuring entity and shall be turned over to them immediately upon the completion of the project and not of the contract.
“That is my position but the country representative of Dermalog has a different interpretation. So siguro mas maganda talaga i-pursue ninyo yung termination or rescission nung kontrata, otherwise I will make this an issue,” Acop said.
“That is my position but the country representative of Dermalog has a different interpretation. So siguro mas maganda talaga i-pursue ninyo yung termination or rescission nung kontrata, otherwise I will make this an issue,” Acop said.
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