Supplier’s P8.36M reimbursement claim vs DOTr-MRT3 junked

A CLAIM of P8.36 million refund against the Department of Transportation-Metro Rail Transit 3 for alleged excess liquidated damages imposed for delayed delivery has been thrown out by the Commission on Audit.

In a 13-page decision, the COA en banc held that MRT3 imposed the correct amount against Cold Chain Professional Reefer Services Company (CCPRSC) for late deliveries in two of three batches of air-conditioning units on a contract worth P116.5 million.

Audit records showed the supplier met the deadline for the first delivery of 42 units worth P62.73 million. For the second batch of 18 units worth P26.88 million, it incurred a delay of 23 days.

The biggest delay was recorded in the third batch of another 18 units which was supposed to arrive on March 17, 2019 but was only fulfilled on December 29, 2019.

In all, the MRT3 listed a total of 311 days of delay which was multiplied by P26,884.61 or 10 percent of the cost of the delayed batch, equivalent to P8,361,113.71 in total liquidated damages.

In its petition, CCPRSC claimed the damages imposed were “unjustified and unfair,” invoking the Special Conditions of the Contract (SCC) in its agreement with the MRT3 management that the maximum amount of liquidated damages would only be pegged at five percent of the P116.5 million contract price or P5.825 million.

In its reply, the DOTr-MRT3 agreed to a reduced amount of imposed liquidated damages at P5.825 million.

The COA, however, said the special condition agreed upon between the MRT3 and the supplier cannot prevail over the Revised Implementing Rules and Regulations of the Government Procurement Reform Law (RA 9184).

“Simply put, this Commission cannot agree with the DOTr-MRT 3 and CCPRSC’s agreement on putting a cap on the imposable LD, which in this case is a maximum of 5 percent of the contract price or lower than that provided by the procurement law and its related issuances which is 10 percent,” the commission said.

It said a government agency and its supplier are required to “observe the applicable provisions of the procurement law and its related issuances such as the RIRR” as they are meant to protect the interest of the government and the public.

“This