This pertains to the Memorandum dated October 16, 2008 of Director J. Thaddeus P. Hernan, Administrative Services Department, submitting his position paper/recommendation on the procurement of Automated Election System (AES) equipment for the 2010 National and Local Elections forwarded by Executive Director Jose M. Tolentino, Jr. with his favorable recommendation.

The memorandum of Director Hernan states:

       "Tempus fugit. As Congress is still deliberating on the appropriations bills, time also flies for the preparation of the 2010 Elections. Hence, the undersigned humbly submits this position/recommendation on the procurement of Automated Election System (AES) equipment for the 2010 National and Local Elections

       Albeit the cost of the elections and inevitable 'digital divide' between the computer literate and computer-unaccustomed voters, credibility-fortifying and competence-affirming milestone in Philippine Elections has materialized as the COMELEC, through Republic Act No. 9369, adopted the automted election system in the recently concluded August 11, 2008 ARMM Elections. The monumental automation of the ARMM elections gave us a lot of LESS:

• Less human intervention;
• Less failure/annulment of elections;
• Less electoral fraud and violence;
• Less public criticisms but more public confidence as evinced by eighty-four (84%) percent voters' turn-out despite the electoral innovation;
• Save for the barangay officials, first time in the history of the COMELEC that proclamation of winning candidate/s was made in less two days after the casting of votes for the entire ARMM

       There can be no denying therefore that we are all looking forward to beyond our stakeholders' expectations, and surpass, or at least maintain, the COMELEC's accomplishments during the said ARMM Elections. The realization of this goal must begin by cementing a more effective and solid underpinning for the 2010 Elections, especially, in the procurement of automated voting/counting machines and paraphernalia.

       Per COMELEC's Budget Requirement for Automating the 2010 National and Local Elections, we have proposed the procurement of 350,000 units (including back-ups) of voting machines, in case direct record electronic (DRE) system shall be utilized nationwide, or 7,000 units (including back-ups) in case of optional mark reader machines (OMR). The AES components covering the costs of the equipment, services, transmission, project management, systems integration and cost of ballots for OMR, have the following estimated outlays:

       As the foregoing data translate the intricacy and the magnitude of the AES equipment, the whole process of procurement must pass the hands of a more technically-equipped and adept group of individuals in terms of information and communications technology (ICT), at the earliest possible time. This does not mean however that the present BAC is evading its jury-duty as the main procuring body of COMELEC and neither does this signify that the COMELEC is not capable at all of procuring the subject equipment. The present proposal to have the procurement undertaken by a separate group is merely impelled by the following factors / reasons:

(1) Complexity of the Subject of Procurement

       Voting and counting machines are not simple equipment involving algorithms, symbolic processing, storing and organizing data, cryptography, simulations or artificial intelligence but above all, these machines must possess the following requirements: speed, security, accuracy, transparency, credibility, accountability, operatability and cost-effectiveness. The specifications, designs or paradigms that will ensure said requirements will be best determined by no less than the highly-technical people or IT professionals (in collaboration with the COMELEC Information and Technology Department (ITD).

       Banking on the skills and knowledge of IT professionals, the specifications of automated election equipment may at least be simplified without sacrifying its integrity and reliability, and the coffers of the government.

       Similarly complex as teh technical requirements of automation is meeting the exceeding high expectations of all the stakeholders including the media and the foreign observers. The COMELEC cannot meet such expectation without the judicious study and early preparation by appropriate and competent individuals well-versed in ICT and requisite procurement procedures. Poll automation is imbued with public interest and the source and quality of automated machinces procured will ultimately determine if public interest is justly upheld and promoted.

(2) Time Element and Vulnerabilities of Procurement of Automation Equipment

       Since the national budget is usually approved and released on the first quarter of the succeeding fiscal year, procurement process shall commence only after its release to the COMELEC, specifically upon approval of the Request for Proposal (RFP) and coupled with the issuance of the Certificate of Availability of Funds. Procurement activities are then conducted based on the prescribed timetable under RA 9184.

       For the 2010 Elections, the projected procurement shall involve the following components/items:

A. Automation

(1) Electronic Voting System;
(2) Election Management System;
(3) Automated Counting System, if applicable;
(4) Electronic Transmission System;
(5) Consolidation/Canvassing System;

B. Election Forms, Supplies and Paraphernalia
C. Supplies for the Working Commitee
D. Forwarding Services

       Crucial, among the above-enumerated is Item (A). As drawn from the experiences of the BAC during the ARMM Elections, the procurement of automation equipment inevitably demand considerable time and undivided attention of a separate and distinct procuring body not only due to its comlexity but also for the following causes can be immediately addressed to by such body:

(1) Lack of local private manufacturers for the desired automated election equipment;
(2) Unavailability of the subject equipment from the local marker;
(3) Concerns on the eligibility of the prospective bidders which may result to failure of bidding;
(4) Issues on the compliance of technical and financial requirements which may likewise result to failure of bidding;
(5) The necessity for the early completion of the process of procurement to enable appropriate customization/development of the equipment, trainings, conduct of voters' education nationwide, or mock-elections, as the case may be;
(6) Compliance with the requirements of other government agencies such as the Department of Finance, Bureau of Customs, Department of Science and Technology, or the National Telecommunications Commission;

       Another point that may hamper the time-table of the procurement process is the declaration of failure of bidding in case of ineligibility of all porspective bidders or non-compliance with the technical and financial requirements, as has been experienced in the past. In such a case, however, the law allows for alternative method/s of procurement after observance with the conditions of Executive Order No. 423, as amended by Executive Order No. 645, viz:

       Sec. 4. Approval of Government Contracts Entered Into Through Alternative Methods of Procurement

a. For Government Contracts Involving An Amount Of At Atleast Five Hundred Million Pesos (500 Million). - Where the Head of the Procuring Entity has made a determination that a Government Contract, including Government Contract required by law to be acted upon and/or approved by the President, involving an amount of at least Five Hundred Million Pesos (500 Million) falls under any of the exceptions from public bidding described in Section 3 hereof, the Head of the Procuring Entity shall, before proceeding with the alternative methods of procurement provided by law and applicable rules and regulations, obtain the approval of the Government Procurement Policy Board (GPPB) that said Government proposed procurement undertaking falls within the exceptions from public bidding and that teh proposed specific alternative mode of procurement is appropriate. (Underscoring supplied.)

Except for government contracts required by law to be acted upon and/or approved by the President, the Heads of the Procuring Entities, after obtaining the foregoing requirements, shall have full authority to give final approval and/or to enter into said Government contracts of their respective agencies, entered into through alternative methods of procurement allowed by law. Provided, that the Head of the Procuring Entity certifies under oath that the contract has been entered into in faithful compliance with all applicable laws and regulations.

(3) Present Composition and Professional/Educational Background of the BAC Members:

To be candid, Members of the BAC, as well as those of its Technical Working Groups (TWGs), are not at all technical people. If some possess knowledge on modern technology, the same may not be sufficient to meet the strict and multi-faceted standards of ICT as compared to IT professionals or those tremendously-exposed to this line of specialization.

(4) Performance of Other Functions by BAC Members

The holding of the 2010 Elections is a though challenge for the entire Commission which necessitates prudence, competence and attention in every phase of preparation. Owing to the structure of the COMELEC wherein the BAC Members are also attending to other similarly important designations as members of different committees involved in pre-election preparations, it is more programatic, advantageous and convenient for the Commission to allow the procurement of AES equipment to an appropriate and technically-learned individuals or office/agency with such expertise. This will also permit the BAC to instead concentrate on the separate or parallel procurement of accountable and non-accountable forms, supplies and paraphernalia and other services, as may be exigent.

Premises considered, the undersigned respectfully recommends the following:

(1) To commence as soon as practicable the preparation for the procurement of AES Equipment or upon determination of the most suitable technology/system for the 2010 Elections and completion of relevant Bidding Documents;

(2) To REQUEST the services of the National Computer Center (NCC) or the Commission on Information and Communications Technology (CICT) in the bidding out and procurement of AES equipment for and in behalf of the COMELEC for purposes of the 2010 Elections. The COMELEC then considers and/or implements the recommendation/s as may be the NCC or the CICT, which the Honorable Commission may deem best.

It may ne noted that the NCC is primarily in-charge of the computerization program of the government. It was re-organized under Presidential Decree No. 1480 to perform the following functions:

1. Formulate and ensure the implementation of an integrated national computer development program consonant with the government's development plans and objectives;


2. Provides policy guidelines for the development direction and control of computer technology as a national resource;


3. Formulate policies and prescribe standards on the acquisition of computers and related devices, date communications, information systems, and manpower development in support of national computerization objectives;


4. Provide necessary computer services to government agencies to stimulate and accelerate the development of operational system as well as to fill gaps in the services provided by other government computer installations;


5. Establish, operate and maintain an EDP Educational and Research Center which will provide training and research facilities and bring about the development of EDP expertise and the establishment and implementation of standards for EDP training and education in the country;


6. Coordinate with the Department of Education [and Culture] and other government agencies concerned in the supervision and regulation of all private EDP training institutions; and prescribe standards for curriculum development and formulate rules and regulations to govern the operation of existing EDP training institutions and those that may hereafter be established;


7. Assist government agencies with computer facilities in the effective supervision, regulation and rationalization of the organization, management and operation of all EDP installations in the government including government-owned and controlled corporation and local governments; and for this purpose may conduct a management audit whenever necessary; and


8. Perform such other functions as may be necessary to implement the provision of this Decree.

Before the passage of RA 9184 in 2003, the NCC was mandated by Executive Order No. 37 to procure IT equipment for all government agencies. Although this law, which was issued in 1998, may have been superseded by RA 9184, the experience and proficiency of NCC in ICT including its procurement aspect cannot be discounted as apt solution to the technical and operational hitches, beside the cost-efficiency and convenience it may offer to this Commission.

On the other hand, in recognition of the vital role of information and communication in nation-building, the CICT was created in 2004 through Executive Order No. 269 with a principal mandate of streamlining, coordinating and implementing the various ICT-related plans and policies of the government. The CICT is directed to ensure universal access and high-speed connectivity at fair and reasonable cost and to provide strategic, reliable and cost-efficient information and communications technology infrastructure, system and resources to the public and private sectors.

In compliance with such mandates, the CICT is vested inter alia with the following powers and functions:

1. Initiate, harmonize and coordinate all ICT plans to ensure their consistency with national objectives and goals;


2. Establish and administer comprehensive and integrated programs for ICT at the national, regional and local levels with due consideration to advances in convergence and other emerging technologies; and for this purpose, may call on any agency, corporation or organization, whether public or private, whose development programs in ICT are an integral part thereof, to participate and assist in the preparation and implementation of such programs;


3. Design, implement and ensure the protection of an integrated government information and communications infrastructure development program that will coordinate all existing government entities, taking into account their existing plans, programs, proposals, software and hardware inventory and the installed systems and programs;


4. Develop and implement, in coordination with concerned government agencies, a comprehensive ICT application capability in the national government and determine the personnel qualification and other standards essential to the integrated and effective development and operation of government information and communication infrastructure.

Needless to say, to delegate the bidding and technical evaluation of bids to an OUTSIDE body will free the Honorable Commission from baseless and malicious insinuations by its 'misguided' detractors even where the bidding (conducted) is above board and fully transparent.

(Conversely, it is submitted that although the COMELEC has technical people in the ITD, the procurement of the entire voting/counting machines and peripherals for the 2010 Elections inclusive of testing, may not be properly and fully-attended to given its primordial mandate in the nationwide cleansing of voters' list which is equally significant in the attainment of COMELEC's goal).

Respectfully submitted for your Honors' consideration."

The Commission RESOLVED, as it hereby RESOLVES, to approve the foregoing recommendations of Director J. Thaddeus P. Hernan, Chairman, Bids and Awards Committee, as concurred in by the Office of the Executive Director, to wit:

(1) To commence as soon as practicable the preparation for the procurement of AES Equipment or upon determination of the most suitable technology/system for the 2010 Elections and completion of relevant Bidding Documents;

(2) To REQUEST the services of the National Computer Center (NCC) of the Commission on Information and Communications Technology (CICT) in the bidding out and procurement of AES equipment for and in behalf of the COMELEC for purposes of the 2010 Elections. It is understood that proposals made by the NCC or CICT shall only be recommendatory in nature. The Comelec may consider and/or implement the recommendation/s of the NCC or CICT which it may deem best.

Let the Bids and Awards Committee implement this resolution.

SO ORDERED.

Updated: 01.13.12 LGA