DND issues partial notice of termination for Huey contract
Published by dwdd.com
CAMP GEN EMILIO AGUINALDO, Quezon City (DWDD) – The Department of National Defense (DND) issued a notice of partial termination to suppliers Rice Aircraft Services Inc. and Eagle Copters Ltd. for its failure to deliver the 21 UH-I “Huey” combat utility helicopters on time with a contract price of P 1,263,600,000.
The order, sent to Robert Rice Jr., the representative of the joint venture and signed by Defense Secretary Voltaire Gazmin, indicated that “In compliance with Section 88, Rule XXII of the IRR of Republic Act No. 9184 (Philippine Procurement Law), the contract agreement between the DND/AFP and the Joint Venture of Rice Aircraft Services Inc. and Eagle Copters Ltd. for the supply and delivery of 21 UH-I helicopters for the PAF with corresponding contract price of PhP1,263,600,000 shall be partially terminated for exceeding the ten percent maximum liquidated damages.”
As of Wednesday, only eight out of the 21 choppers were delivered, thus the company failed to comply with the agreed schedule of requirement of the contract agreement, which provides that the delivery should be within 180 calendar days upon opening of the Letter of Credit, which falls on September 23, 2014, and the maximum liquidated damages was reached last Jan. 31
It added that once the “cumulative amount of the liquidated damages has reached 10 percent of the amount of the contract, the procuring entity shall rescind the contract without prejudice to the other courses of action and remedies open to it. DND PAS