STATE auditors have flagged the Department of Information and Communications Technology’s (DICT) P79.2 million procurement of 15,000 tablets in 2020 and 2021 under former Secretary Gregorio Honasan on questions of cost and technical specifications.
The first batch involved 4,000 Kosmos tablets at P4,950 each or a total of P19.8 million funded from the 2019 budget under the pilot phase of the Cybersafe Learning for Education Project. This was delivered on January 21, 2021.
The second phase was worth P59.4 million involving 11,000 Cosmic tablets at P5,400 each which was funded under the 2020 budget. Delivery was completed on December 17, 2021
In the bidding documents, it was revealed that Kosmos is the authorized distributor of Cosmic’s products for the whole country. On the other hand, Cosmic is the brand owner of Cherry Mobile.
Auditors noted that based on the technical specifications of both procurements, the features and characteristics of the two were virtually identical in display screen size, storage, cameras, interface, operating systems, resolutions, and network compatibility.
However, the DICT set a per-unit cost of P5,000 for the first purchase and P5,454.54 for the second one.
The audit team tried to get the DICT to explain the cost variance but was not provided a breakdown of the approved budget for the contract (ABC).
“The variance in the pricing was not supported to prove the necessity for the difference of P454.54 per unit cost. It is not guaranteed that the DICT has obtained the most reasonable price for the government,” the Commission on Audit said.
Auditors likewise pointed out that a market study showed Samsung Galaxy Tab A 8.0 was available at P5,453.64 while Lenovo Tab M8 2nd Generation was selling for P5,415 per unit – both within the DICT’s approved budget.
Both brands and models offered better specifications, including bigger storage capacities, faster processors, external storage, higher resolutions, and longer battery lives.
“Our research for the market pricing of tablets bearing similar TS with that provided for the 4,000 and 11,000 tablets bearing the same minimum requirements were priced at P3,699. Essentially, for the contract cost per unit of P5,000 or P5,454.54, the market scoping would inform the DICT that such cost can accommodate tablets with higher standard specifications,” the COA said.
Upon delivery, however, the supplier delivered units different and with superior specifications than what was stated in the Terms of Reference (TOR).
Auditors said the first batch of 4,000 was Cherry Mobile Flare LTE with a tag price of P4,999 each.
The second batch of 11,000 had three different units – 7,658 were Cherry Mobile Flare LTE, 681 tablets were the more expensive Cherry Mobile Aqua Tab S1 selling for P6,999, and the 2,661 were Cherry Mobile Flare Deluxe, price per unit unknown.
In its reply to the audit findings, the DICT Central Office said it is the duty of the Bids and Awards Committee to determine the appropriateness of documents and whether the procurement proposed is ready prior to posting.
It assured the COA that the concerns raised would be addressed and the pre-procurement processes would be reviewed for future transactions.
