PABILLO et.al, v.

COMELEC

G.R. No. 216098, April 21, 2015.

IBP v. COMELEC

G.R. No. 216562, April 21, 2015.

En Banc, PERLAS-BERNABE, J.

Government procurement shall be done through competitive

public bidding

The COMELEC was able to implement for the first an automated

election system(AES) on a nationwide scale during the May 10, 2010
Synchronized National and Local Elections pursuant to RA 8436 as
amended. COMELEC awarded and executed the 2009 AES Contract for
lease with option to purchase of an AES to be used in the May 2010
elections to Smartmatic-TIM. In 2012, COMELEC executed a deed of sale
in exercise of its option to purchase. In 2014, COMELEC Advisory Council
(CAC) recommended, among others, the reuse of the existing technology
for the upcoming 2016 Elections and to seriously consider the use of
multiple or mixed technologies to promote interoperability and encourage
innovative solutions. COMELEC however thru Resolution 9922, decided to
pursue a direct contracting arrangement with Smartmatic-TIM, which
now resulted in the execution of the Extended Warranty Contract.

Was there grave abuse of discretion in the issuance of resolution 9922?

Yes. Resolution 9922 is NULL and VOID for serious and unignorable
legal flaws on procurement process. The Extended Warranty Contract
cannot be validated by the mere expedient of characterizing the same as
a part of the 2009 AES Contract that need not undergo the rigorous
process of bidding. It is actually a separate service contract, founded
upon a new offer and a new consideration, and for which a new payment
is needed for the repair and refurbishment of the PCOS machines, to be
accomplished within a 5-month period and extends no subsisting
warranty that is not different from a contract for service where a routine
check-up and repairs, if need be, are made by the service contractor thus
public bidding is necessary. By its very nature, public bidding aims to
protect public interest by giving the public the best possible advantages
through open competetion.

The COMELEC was able to implement for the first an automated

election system(AES) on a nationwide scale during the 2010
Synchronized National and Local Elections pursuant to RA 8436 as
amended. COMELEC awarded and executed the 2009 AES Contract for
lease with option to purchase of an AES to be used in the May 2010
elections to Smartmatic-TIM. In 2014, COMELEC Advisory Council (CAC)
recommended the reuse of the existing technology for the upcoming
2016 Elections and to seriously consider the use of multiple or mixed
technologies to promote interoperability and encourage innovative
solutions. COMELEC however thru Resolution 9922, decided to pursue a
direct contracting arrangement with Smartmatic-TIM, which now resulted
in the execution of the Extended Warranty Contract.

Was there grave abuse of discretion in the issuance of resolution 9922?

 Yes. Resolution 9922 is NULL and VOID for serious and unignorable
legal flaws on procurement process. The Extended Warranty Contract
cannot be validated by the mere expedient of characterizing the same as
a part of the 2009 AES Contract that need not undergo the rigorous
process of bidding. It is actually a separate service contract, founded
upon a new offer and a new consideration, and for which a new payment
is needed for the repair and refurbishment of the PCOS machines, to be
accomplished within a 5-month period and extends no subsisting
warranty that is not different from a contract for service where a routine
check-up and repairs, if need be, are made by the service contractor thus
public bidding is necessary. By its very nature, public bidding aims to
protect public interest by giving the public the best possible advantages
through open competition.