LTO set to end contract with 'underperforming' foreign IT provider

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LTO set to end contract with 'underperforming' foreign IT provider
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MANILA, Philippines: The Land Transportation Office (LTO) is finalizing the legal steps for the termination of its contract with the agency's foreign information technology (IT) provider that developed the P3.14 billion Land Transportation Management System (LTMS) due to underperformance and delays.

MANILA, Philippines: The Land Transportation Office is finalizing the legal steps for the termination of its contract with the agency's foreign information technology provider that developed the P3.14 billion Land Transportation Management System due to underperformance and delays.LTO Chief Assistant Secretary Vigor Mendoza 2nd said the agency was being assisted by the Office of the Solicitor General in the process of rescinding its contract with the German technology firm, Dermalog.

119 billion in liquidated damages, which 'merits the filing of termination or rescission of the contract.''Pursuant to the Revised Implementing Rules and Regulations of the Government Procurement Reform Act , once the cumulative amount of liquidated damages reaches 10 percent of the amount of the contract, the procuring entity may rescind or terminate the contract without prejudice to other causes of action and remedies available under the circumstance,' Acop said.

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