The Department of National Defense initiated the P189,934,000  Landing Craft Utility acquisition project on June 25, 2008 on behalf of the Philippine Navy. Because of the project’s monetary value, it fell under the responsibility of the DND Bids and Awards Committee (BAC).

A Landing Craft Utility (LCU) is a relatively small amphibious assault vessel that transports vehicles, personnel, and materiel to direct to shore, without the need for port facilities. Prior to this project, Philippine Navy ships in this category consisted of ex-US Navy LCU Mk.6s which were remnants of the Second World War. Replacements were sorely needed.

The project produced the largest locally manufactured Philippine Navy ship to date. The previous record holder was the Marcos-era 44-meter Aguinaldo class patrol gunboat. The LCU, in comparison, is 51 meters — 15 meters longer than existing LCUs.

In addition to its place in history, this project is also noteworthy for the numerous twists and turns it took in its three year run. For example, its first bid opening was deferred a total of 11 times, between August and December 2008. Despite this, the first bid attempt was declared a failure. This craft is held up on the Timawa.net forum as an illustration of the challenges facing SRDP as a whole, and naval shipbuilding in particular.

The Philippine Navy is expected to commission this LCU, tentatively named BRP Tagbanua, in November 2011.

The following table presents the latest official timeline for this project, as stated in the Department of National Defense Procurement Monitoring Report for July 2010. This PMR is currently available on the GPPB Website, and is open source information.

Date Activity
October 14, 2005 AFP Capability Development Board approves replacement of LST upgrade project with Landing Craft Utility acquisition project
June 25, 2008 Pre-procurement conference
July 9, 2008 Posting/publication of Invitation to Apply for Eligibility to Bid (ITEAB) on the Philippine Daily Inquirer, PhilGEPS, and DND Websites
July 17, 2008 Pre-bid conference
August to December 2008 Bid submission and opening. There were a total of 11 schedule changes for the opening of bids.
January 22, 2009 Only one (1) bidder, Santiago Shipyard and Shipbuilding Corp, participated during the bid opening. The Tax Clearance Certificate submitted by the bidder was found to have expired, thus patently insufficient and not compliant with the bidding documentsDND BAC Resolution No. AFPMP-PN-LCU-09-001. DND BAC declared a failure of bidding for the said project and directed the conduct of re-bidding.
January 29, 2009 Rebidding. Posting/publication of ITEAB on the Philippine Daily Inquirer, PhilGEPS, and DND Websites
February 12, 2009 Pre-bid conference
May 7, 2009 Bid opening. Two (2) bidders participated during the bid opening:

  • Propmech Corporation
  • Santiago Shipyard and Shipbuilding Corp

DND BAC Resolution No. AFPMP-PN-LCU-09-002. DND BAC declared Propmech Corporation as the Lowest Calculated Bidder and Santiago Shipyard Shipbuilding Corporation as LCB2 for the said project and directed the conduct of Post Qualification.

June 4, 2009 DND BAC Resolution No. AFPMP-PN-LCU-09-003. DND BAC resolution amending Resolution No. AFPMP-PN-LCU-09-002 dated May 7, 2009 and declared Santiago Shipyard and Building Corporation as Lowest Calculated Bidder (LCB) and Propmech Corporation as LCB2 for the said project and directed the conduct of Post Qualification.
July 5-9, 2009 The PN TWG and DND TWG conducted the post qualification in Cebu City
October 8, 2009 The DND BAC declared Santiago Shipyard and Shipbuilding Corporation as Post Disqualified for the project
December 14, 16, and 17, 2009 The first phase of Post Qualification focused on visit to the main office of Propmech, the verification of the eligibility documents submitted during the bid opening of the legal and financial documents with the Maritime Industry Authority (MARINA), the Bureau of Internal Revenue (BIR), and Banco de Oro.
January 11 to 13, 2010 The second phase of the post qualification was in Cagayan de Oro City which focused on the Shipyard in Jasaan, Misamis Oriental and the warehouse and service center in Cebu City.
January 21, 2010 The third phase involved the visits and interviews of ISO-related entities and authorities
February 5, 2010 DND BAC Resolution No. AFPMP-PN-LCU-10-001. DND BAC declared Propmech Corporation as the Lowest Calculated Responsive Bidder (LCRB) and recommended SND’s approval for the issuance of Notice of Award (NOA) in its favor.
March 16, 2010 NOA was approved/signed by the Secretary of National Defense (SND)

Philippine defense-related social networking sites have been awash with informal fighter aircraft recommendations for years. Many are simple collections of photographs of fighter aircraft with a mimimum of commentary, while others are assemblies of motherhood statements that make little, if any, effort into understanding the costs and complexities of operating modern aircraft.

Two discussions, however, standout for their depth of analysis and brutal attention to verifiable detail: the “VOX threads”. Both are off-shoots of long-standing, but cordial, debates between two protagonists: Horge and Ignatius1 (now Ignatius1@TMW). Ignatius is a Filipino officer in service with a non-Filipino army and is an air defense professional. Horge is a businessman with an above-average passion for research and attention to detail. These two are largely credited with elevating the overall quality of aircraft discussions on the Timawa.net  forum.

The resulting threads remain the most detailed analysis of aircraft of affordability on the Timawa.net forum, and arguably anywhere else on Philippine-themed discussion sites:

VOX POPVLI, VOX DENARII? (a comment on the Jet-Pool thread)http://www.timawa.net/forum/index.php?topic=22317.0

Created on April 7, 2010

VOX POPVLI, VOX DENARII expanded: additional threadhttp://www.timawa.net/forum/index.php?topic=24147.0

August 20, 2010

Both are voluntary post-mortem threads for a “Jet-Pool” that sought to get the forum membership’s pulse on what they thought would be the most likely candidate for the PAF’s F-5 replacement. These threads subjected the crowd favorites on the pool to financial analysis that included the following considerations:

  • Expected life of the airframe based on published sources
  • Projected annual operating cost
  • ROI
  • Credit considerations

It is worth noting that the principal movers of the threads caveat their claims to remind readers that their assertions are merely based on whatever is available from open-sources and faithfully cite these to support their points. This is in-keeping with the forum’s policies.

While it is very possible, even likely, that there will be errors in the analysis because of the lack of direct access to the PAF’s actual acquisition data, the logical journey that the protagonists take readers through remains an interesting exercise that benefits both laymen and professionals alike. For laymen, it broadens understanding of aircraft purchasing considerations. For professionals, on the otherhand, it presents insights into how to justify multi-billion peso acquisitions to the Philippine legislature.

BRP Felix Apolinario (PG-395), an Andrada class patrol gunboat, will be conducting a weapons test off Surigao del Norte. Details are available on the following Notice to Mariners (NOTAM)

Notice To Mariners No. 195-2011
Monday, 24 October 2011 16:59
Notice is hereby given to all mariners and other parties concerned that:

1. Reference: Philippine Navy Radio Message Cite NOCB-0811-319

2. The Philippine Navy Vessel PG395 will conduct Naval Gun Test Firing on October 29, 2011 from 8:00 A.M. to 5:00 P.M. at vicinity 10 Nautical Miles East off Antokon Island, Surigao Del Norte or at the following coordinates:

< Edited >

3. In this connection, all ships/watercrafts transiting the vicinity of the abovementioned areas are advised to take necessary precautionary measures.

4. The cooperation of all concerned in effecting widest dissemination of this information is requested.

Timawa.net forum discussionhttp://timawa.net/forum/index.php?topic=13608.0

The Department of National Defense initiated the P3 billion Combat Utility Helicopter acquisition project in July 24, 2008. This acquisition was for the Philippine Air Force, but because of its amount, it fell under the responsibility of the DND Bids and Awards Committee (BAC). The project sought eight (8) utility helicopters that could, among other things, carry a crew of four, with eight passengers with a minimum payload of 3,000 lbs.

Deliveries of the first four helicopters are expected in November 2011.

The following table presents the latest official timeline for this project, as stated in the Department of National Defense Procurement Monitoring Report for July 2010. This PMR is currently available on the GPPB Website, and is open source information.

Date Activity
July 8, 2008 Pre-Procurement Conference for PAF Combat Utility Helicopter (CUH) Acquisition Project.
July 17, 2008 Publication of Invitation to Apply for Eligibility and to Bid (IAETB) at Philippine Daily Inquirer, PhilGEPS, and DND Websites
July 24, 2008 Pre-bid conference
September 5, 2008 Bid opening. Only one (1) bidder (Agusta Westland S.P.A) participated in the bid opening. However the eligibility documents of Agusta Westland were found to be patently insufficient and non-compliance, hence, eligibleDND BAC Resolution No. AFPMP-PAF-CUH-08-001. DND BAC declared Agusta Westland S.p.A ineligible and directed to conduct a re-bidding for the project
September 8, 2008 Re-bidding. Publication of IAETB at Philippine Daily Inquirer, PhilGEPS, and DND Websites
September 19, 2008 Pre-bid conference
October 9, 2008 Two (2) bidders (Agusta Westland S.p.A and PZL Swidnik) particpated in bid openingDND BAC Resolution No. AFPMP-PAF-CUH-08-002. DND BAC rated Agusta Westland as failed while PZL Swidnik was declared ineligible to bid and declared a second failure of bidding
October 17, 2008 PZL Swidnik filed a Letter for Reconsideration
December 4, 2008 DND BAC Resolution No. AFPMP-PAF-CUH-08-003. DND BAC denied the Letter for reconsideration of PZL Swidnik for lack of merit
May 20, 2009 Secretary of National Defense approved recommendation of the DND BAC for the Conduct of Negotiated Procurement
June 17 & 23, 2009 Pre-procurement conference. The Project Terms of Reference (TOR) and list of suppliers to be invited were approved by the Negotiating Committee
July 21, 2009 Pre-negotiation conference
August 28, 2009 Bid opening. Only one (1) bidder (PZL Swidnik) participated in the bid openingCUH Negotiating Committee Resolution No. AFPMP-PAF-CUH-09-003. DND BAC declared PZL Swidnik A.S. as the Single Calculated Bidder (SCB) for the said project and directed the conduct of Post-Qualification
Sept 16, 2009October 26-30, 2009 The post qualification of PZL Swidnik was done in two phases, first, the local phase and second, the foreign phase. Checking of eligibility documents issued by appropriate offices in the country and post qualification of PZL Swidnik in Poland
Nov 5, 2009 The Negotiating Committee declared Wytwornia Sprzetu komunikacyjnego “PZL Swidnik” S.A. as the Single Calculated and Responsive Bidder and recommended to the DND BAC to issue resolution for the issuance of the Notice of Award in its favorDND BAC affirmed the recommendation of CUH Negotiating Committee to declare Wytwornia Sprzetu komunikacyjnego “PZL Swidnik” S.A. as the Single Calculated and Responsive Bidder for the said project and recommended for the issuance of the Notice of Award in its favor
November 26, 2009 Issuance of Notice of Award in favor of PZL Swidnik. NOA was approved/signed by the Secretary of National Defense. Click image below to enlarge.

June 1, 2010 Contract Agreement & Issuance of Notice to Proceed. Approved/signed by SND

Vice Admiral Alexander Pama, in an interview with ABS-CBN (see here), reported that the Philippines is working to acquire two more Hamilton class Weather, High Endurance Cutters (WHEC). Rear Admiral Orwen Cortez, Philippine Navy vice commander, will reportedly be arriving in the US in November to inspect the first of two additional WHECs. The third WHEC is expected in 2013.

The first WHEC, the former USCGC Hamilton, now the BRP Gregorio del Pilar (PF-15) was turned over to the Philippine Navy in April of this year.

The Philippine Star reported that BRP Rizal, an Auk class ship of the Philippine Navy, was involved in an “accidental collision” with a Chinese fishing vessel in Recto Bank. Both Vice Admiral Alexander Pama, PN FOIC and MGEN Juancho Sabban, head of the Western Command have confirmed the incident. However, the Department of Foreign Affairs has yet to receive a communication on the matter from the Chinese embassy.

The Philippine Star described the incident as follows:

http://www.philstar.com/Article.aspx?articleId=738940&publicationSubCategoryId=63&newsalert

“It happened at about 6 a.m. within the vicinity of the Recto Bank involving our own PS-74 and a Chinese mother ship,” Sabban told The STAR in a telephone interview.

“Our ship went to their direction to check as we normally do,” Pama also said.

< Edited >

Sabban said the Navy’s PS-74 chanced upon the Chinese vessels and made a maneuver to take a closer look.

“As our patrolling ship was approaching to check on the encroaching Chinese vessels, it incurred a steering problem and accidentally hit the mother ship of the Chinese fishermen,” Sabban said.

He said big waves affected the ship’s steering, causing it to move uncontrollably toward the Chinese vessels. After being rammed by the Navy gunboat, the Chinese vessel quickly disengaged and released the smaller boats.

“After cutting the towing line, the mother ship fled, leaving behind 25 sampans it was towing,” Sabban said.

< Edited >

 

The importance of territorial defense capability was thrust into public consciousness in February 1995 when the AFP published photographs of Chinese structures on Mischief Reef in the Kalayaan Island Group. Philippine territory had been annexed.

Congressional response was swift. Within the same month Congress passed Republic Act 7917 which amended the Bases Conversion Development Act to devote 35% of the proceeds of the sale of redundant military installations to the AFP to allow it to improve its capabilities.

Later in February, the legislature passed Republic Act 7898, The AFP Modernization Act. The law sought to modernize the AFP over a 15-year period, with minimum appropriation of P10B per year for the first five years, subject to increase in subsequent years of the program. The modernization fund was to be separate and distinct from the rest of the AFP budget.

The AFP, for its part, put forth a two-part modernization plan that supposed to have borne fruit by 2010. The following table was taken from a publicly available thesis, written by LTC Thomas Sedano completed in 2007 at Fort Leavenworth Kansas. The thesis, in turn, used a publicly available archive of a 20-year old game plan that’s been in the public domain for years.

In support of the program, Congress passed Joint Resolution 28 on December 16, 1996. The resolution approved the two-part modernization program proposed by the DND-AFP, and allocated 164,553.000,000 for Sub-program I. Although the resolution was silent about Sub-program II, the implication was that funding would be at a similar level if not higher.

It appeared that the AFP was finally going to get its due. But it was not to be.

In 1997, merely a few months after JR 28 passed, the Asian Financial Crisis struck the region. As part of austerity measures meant to shore-up the country’s efforts to ride out the the storm, JR28 was reversed, and the amount was never re-allocated.

The BRP Rizal (PS-74), an Auk class patrol ship, will be conducting a weapons test in the Sulu Sea. Details are available on the following Notice to Mariners (NOTAM)

Notice To Mariners No. 188-2011
Notice is hereby given to all mariners and other parties concerned that:

1. Reference: Philippine Navy Radio Message Cite NOCB-0911-030

2. The Philippine Navy vessel PS74 will conduct Naval Gun Test Firing on October 13, 2011 from 8:00 A.M. to 05:00 P.M. at vicinity Sulu Sea or at the following coordinates:

< Edited >

3. In this connection, all ships/watercrafts transiting the vicinity of the abovementioned areas are advised to take necessary precautionary measures.

4. The cooperation of all concerned in effecting widest dissemination of this information is requested.

BRP Lake Buhi (AF-78), a Philippine Navy tanker, will be conducting a weapons test off the coast of Puerto Princesa, Palawan. Details are available on the following Notice to Mariners (NOTAM)

Notice To Mariners No. 184-2011
Notice is hereby given to all mariners and other parties concerned that:

1. Reference: Philippine Navy Radio Message Cite FET-0911-055

2. The Philippine Navy vessel BRP Buhi will conduct Naval Gun Test Firing on October 11, 2011 at around 8:00 A.M. at vicinity 26.6 Nautical Miles East off Panagtahan Point, Puerto Princesa City, Palawan or at the following coordinates:

< Edited >

3. In this connection, all ships/watercrafts transiting the vicinity of the abovementioned areas are advised to take necessary precautionary measures.

4. The cooperation of all concerned in effecting widest dissemination of this information is requested.

The BRP Apolinario Mabini (PS-36) will be conducting a weapons test off the coast of Arena Island, Palawan. Details are available on the following Notice to Mariners (NOTAM)

Notice To Mariners No. 180-2011
Notice is hereby given to all mariners and other parties concerned that:

1. Reference: Philippine Navy Radio Message Cite NOCB-0911-014

2. The Philippine Navy vessel PS36 will conduct Naval Gun Test Firing on October 7, 2011 from 8:00 A.M. to 6:00 P.M. at vicinity 45 Nautical Miles Southeast off Arena Island, Palawan or at the following coordinates:

< Edited >

3. In this connection, all ships/watercrafts transiting the vicinity of the abovementioned areas are advised to take necessary precautionary measures.

4. The cooperation of all concerned in effecting widest dissemination of this information is requested.