Posted on 03/26/2005 3:52:52 AM PST by happinesswithoutpeace
Editor's Note: Published on page A1 of the March 12, 2005 issue of the Philippine Daily Inquirer
THE DEFENSE department yesterday said the P593.3-million contract for the purchase of some 1,700 Minimi assault weapons would "not prosper" because it did not meet the requirements of the law.
Defense Undersecretary Jose Santos told a Senate committee the Department of National Defense was looking at the comparative prices of other assault weapons in the market and studying other modes of purchase as an alternative to a direct or negotiated contract with the Belgian firm Fabrique Nacional-Herstal.
The committee on national defense and security, chaired by Sen. Rodolfo Biazon, is looking at the FNH deal after allegations of possible overprice. The Armed Forces had agreed to buy the guns at $5,088.20 per unit while the United States was able to buy the same weapon at $2,401.50 apiece.
The AFP in 2002 bought an initial shipment of 402 Minimi units from FNH for a total price of P117.4 million. The weapons were delivered in March 2003.
In September 2004, the AFP approved a second deal with FNH for 1,700 units for P593.3 million.
Santos said the P593.3-million FNH contract for the supply of the second batch of the Minimi Squad Automatic Weapons did not meet the requirement under the Government Procurement Reform Act that the contract should be denominated in Philippine peso.
The contract also failed to meet the National Economic and Development Authority's requirement that the price of the second Minimi contract should be equal to, or lower, than the contract price for the first delivery, Santos said.
"It would seem that since the second contract would now use a foreign currency, then the contract price under the second contract would be higher and therefore it is not in compliance with the conditions of RA 9184 and Neda," Santos said.
"The second contract would not prosper because of these questions," Santos said.
Comparison of prices
Santos said the DND had asked a technical working group of the AFP to make a presentation of the prices of similar weapons in the market and determine the "proper mode of purchase."
Military officials could not answer Biazon's question when he asked them to confirm reports that the Minimi basic weapon cost $2,401 while the accessories cost even more-$2,600-bringing the total per unit price to more than $5,000.
Biazon said the allegation of overpricing was a major issue that should be addressed.
Biazon exasperated
Maj. Gen. Reynaldo Rivera, deputy chief of staff for capability, materiel and technology development, or J9, said the price was a lump sum and did not specify how much was for the basic weapon and how much for the accessories.
In exasperation, Biazon said: "Did we buy not knowing what we bought and how much?"
"When the price was quoted, the accessories were already included in the quotation," Rivera said.
Rivera said the AFP only learned about the basic weapon price of $2,401 from the Internet.
Biazon also grilled defense and AFP officials on why the AFP overturned the recommendations of the commandants of the Philippine Army and Philippine Marines since 1992 in favor of the Ultimax, compared to the Minimi, a light machinegun used in some countries of the North Atlantic Treaty Organization.
Ultimax preferred
Reading the letters of the Army and Marine commandants, Biazon said: "Very clearly, the commandants of the user units-the Army and the Marines-want the Ultimax. How come [you chose] the Minimi?"
Biazon said the Army and Marine commanders chose the Ultimax after conducting tests on it and the Minimi.
Why Minimi was chosen
Vice Adm. Ariston de los Reyes said the Minimi was chosen based on the circular of requirements (COR) submitted by the Philippine Army Modernization Board.
De los Reyes said the Minimi was chosen over Ultimax because the latter was only magazine-fed. He said the COR, which laid the specifications for the weapon, stated that the assault weapon should be both magazine- and link-fed.
Interior Secretary Angelo Reyes, who approved the contract in June 2001 when he was defense secretary, said FNH won over two other bidders-Daewoo of Korea and the Ordnance Development Board of Singapore.
Sole supplier
Sen. Serge Osmeña pointed out that the AFP ended up being completely at the mercy of the FNH because FNH was the weapon's sole supplier.
"You decided on Minimi. There was only one supplier. How did you know you were getting the best price for the Minimi?" Osmeña asked.
I figured that was coming.
"Rivera said the AFP only learned about the basic weapon price of $2,401 from the Internet."
-Priceless
Woah! I could do some damage with one of those! ;-)
You got enough toys!
Thank You.
My son finally turned his in back to the armory. He was in Iraq for a year and he's back in the States. He should be home sometime next week. A couple of pictures of Shawn are on my profile page.
I want one of those in semi-auto....
It's belt feed so the pesty AWB laws Pataki added to the state penal code shouldn't apply.
The Ultimax is lighter, cheaper, and just as reliable.
The use of the word "assault", when referring to weapons, is so trite that it is beyond meaningless.
"When the price was quoted, the accessories were already included in the quotation," Rivera said.
Rivera said the AFP only learned about the basic weapon price of $2,401 from the Internet.
They're $999 on EBay.
Good pictures. Prayers for Shawn's safe return.
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