A SINGLE contractor was awarded 20 public works projects totaling P295.5 million by the Isabela provincial government in 2021 despite several deficiencies that should have caused it to be disqualified during the public bidding, government auditors said in a report released last May 19.
The contractor identified by the Commission on Audit as the Dragon Twelve Builders and Construction Supply, was supposedly awarded all 20 contracts for dredging/desilting of creeks in the province on July 29, 2021; received all 20 Notices to Proceed on August 3, 2021; and started work simultaneously in all 20 sites on August 10, 2021.
Auditors however noted a couple of problems: the contractor named the same set of key personnel and the same heavy equipment units for all 20 projects even if these are all taking place in different parts of the province at the same time.
Based on the list submitted, these personnel were Jonathan Diaz, general manager; Peter Capalad, project manager; Terencio Pavon, project engineer; Mark Anthony Palana, material engineer; Jefferson Sadorra, construction safety officer; and Roberto Ferrer, foreman.
According to the specifications, license plates and body numbers on the roster, the same equipment were also assigned for all 20 dredging/desilting projects —two payloaders, two backhoe, a bulldozer, and two dump trucks.
“Twenty (20) contracts funded by the 20 percent Development Fund were awarded to a single bidder, Dragon Twelve Builders, and Construction Supply for the dredging/desilting of creeks. Details show that in all of these contracts, the same key personnel and equipment were pledged to be utilized during implementation,” the audit team pointed out.
Since there is no way for the same people and equipment to make themselves available in 20 different places all at once, majority of the projects suffered huge delays.
Onsite inspection as of September 30, 2021 showed 12 out of 20 were reported the status of “mobilization of resources on-going” almost two months after the issuance of the notice to proceed.
A second monitoring inspection on December 15, 2021 showed only one was completed, 16 were ongoing, and three have not yet started.
The COA said the delays are unfair to the taxpayers who should benefit from the projects.
“The same key personnel and units of equipment pledged by the single contractor for multiple contracts of several simultaneously implemented projects involving dredging and/or de-silting of creeks in various and distant locations may have already contributed to substantial delays in the implementation of the project resulting in failure to provide the intended benefits for public use,” the commission noted.
A review of the bidding process also revealed the contractor was not able to comply with the “minimum major equipment” requirement for each contract represented by a leased cargo truck and a low bed trailer with tractor, each with a certification of availability.
“This deficiency alone should have been a reason for declaring the bid as failed during the preliminary examination of bids. In essence, a bidder should have been disqualified by the BAC/TWG (Bids and Awards Committee/Technical Working Group) if it does not have the technical capability to implement multiple projects requiring adequate resources that will ensure that the projects go smoothly on schedule,” the COA said.
