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Friday, February 9, 2018

DOTr, Bombardier Sign Agreement on OEM Signaling Spare Parts and Maintenance of MRT-3


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Pursuant to efforts to rehabilitate and restore MRT-3, the Department of Transportation (DOTr) and Canadian company Bombardier Transportation have entered into a Memorandum of Understanding (MOU) for the urgent procurement of OEM signaling spare parts and signaling maintenance for MRT-3. 

In a signing ceremony in Pasay City today, Transportation Secretary Arthur Tugade signed an MOU with officials from Bombardier together with Canadian Ambassador John Holmes.

Bombardier is the company that designed, supplied, commissioned, and maintained the MRT-3 signaling system for its first 12 years of operations. Bombardier is the Original Equipment Manufacturer (OEM) and proprietary rights owner of the Cityflo 250 Light Rail and Metro Signaling Solution, which is the signaling system used in the MRT-3 system.


Under the MOU, the DOTr will procure an OEM signaling spare parts and 2-year signaling maintenance contract from Bombardier via direct contracting and emergency procurement, pursuant to the Implementing Rules and Regulations of Republic Act No. 9184, otherwise known as the Government Procurement Reform Act. Such procurement mode was employed considering that Bombardier is the proprietary source of MRT-3's Cityflo 250 signaling system, and given the immediate need to restore MRT-3's reliability and availability, which is a vital public service and infrastructure facility.

The MOU comes after the system’s previous maintenance service providers failed to purchase and maintain a sufficient inventory of OEM signaling spare parts; purchased and installed non-OEM parts; and failed to adequately maintain, renew, and upgrade MRT-3’s signaling system.



“For years, among the top 3 most frequent causes of MRT-3 breakdowns are signaling-related issues. For years, non-OEM signaling spare parts were used and installed, in an effort to save on costs and increase profit at the expense of MRT-3's safety and reliability. For years, MRT-3's signaling system was not maintained properly, and was not upgraded when due. That is why this time, we want to be sure that we get the right spare parts and that we maintain the system right. Bombardier‘s track record is exceptional. They are the original manufacturer of MRT-3's signaling system, and we are directly dealing with Bombardier, not a JV, not a consortium, not any middleman,” said Tugade.

The signing was also witnessed by DOTr Undersecretary for Railways TJ Batan and DOTr Undersecretary for Legal Affairs and Procurement Reinier Paul Yebra.

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