COMELEC inks P536M deal with F2 Logistics

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The Commission on Elections formally awarded to F2 Logistics the P536-million contract for the delivery of 2022 elections paraphernalia nationwide
• The contract was signed on October 29
• F2 Logistics will deliver all election-related equipment, peripherals, forms and supplies for the roadshow, field tests, mock elections, training, final testing and sealing, and election day

The Commission on Elections (COMELEC) formally awarded to F2 Logistics Philippines, Inc. the P536-million contract for the delivery of 2022 national elections paraphernalia nationwide.

A copy of the contract uploaded on the COMELEC website on October 30 showed it was signed on October 29 by COMELEC chairman Sheriff Abas and F2 Logistics president Efren Uy.

The contract covers four lots or areas of coverage:

• Northern and Central Luzon, and Cordillera – P106 million

• Metro Manila and Southern Luzon – P123 million

• Visayas – P120.999 million

• Mindanao – P185.999 million

Last July 27, the COMELEC Special Bids and Awards Committee declared F2 Logistics as the bidder with the lowest calculated bid for the P1.61-billion project.

F2 Logistics’ P535.99 million bid bested those of three other firms, namely, LBC Express, 2GO Express, and Airspeed International.

On August 25, the COMELEC en banc approved the notice of award, which was received on September 15 by F2 Logistics, which then posted the performance security on September 21.

The contract will take effect once F2 Logistics receives the Notice to Proceed. Performance of all obligations also starts from the effectivity of the contract.

According to the contract, F2 Logistics will be responsible for the delivery of all election-related equipment, peripherals, forms and supplies for the roadshow, field tests, mock elections, training, final testing and sealing, and election day.

In particular, F2 Logistics will be responsible for the forward and reverse logistics of, among others, vote-counting machines (VCM) and peripherals, VCM external batteries and accessories, consolidation or canvassing system machines, and transmission equipment and devices.

It will also be responsible for the forward logistics of, among others, official ballots, ballot boxes, election day computerized voters’ lists, and other computerized voters’ list supplies.

Cargoes should be picked up from COMELEC warehouses while F2 Logistics should also provide provincial warehouses of local hubs for consolidation of all election equipment and peripherals “to ensure complete and timely distribution” to consignees or to where the cargoes are destined. The hubs will be supervised by COMELEC, and must be secured on a 24/7 basis by security personnel with support from the Philippine National Police/Armed Forces of the Philippines contingent.

Civic groups and poll watchdogs had earlier aired concern over a possible conflict of interest if F2 Logistics handled the project, particularly with the logistics service provider’s connection to Dennis Uy, a known ally of President Rodrigo Duterte who helped finance his presidential campaign in 2016.

Senator Leila de Lima, a former election lawyer, also recently filed Senate Resolution No. 855 urging Congress to investigate the awarding of the logistics contract for the 2022 presidential elections to F2 Logistics. De Lima stressed the need to ensure that the election processes are free from even suspicions of cheating, manipulation, and irregularities by disqualifying suppliers with known links to identified political parties and possible candidates.

Abas earlier said, however, that being an election campaign funder does not automatically disqualify a bidder.

F2 Logistics Philippines was founded in 2006 by Efren E. Uy, who sits as its president and chief executive officer. F2 Logistics is listed as a joint venture with Udenna Management & Resources Corp., a subsidiary of Dennis Uy’s Udenna Corp. The two Uys are not relatives.

According to the 2020 annual report of Chelsea Logistics and Infrastructure Holdings, Inc. (CLC), another subsidiary of Udenna Corp., Dennis Uy sits as chairman of F2 Logistics while his spouse, Cherylyn, is corporate treasurer.

Efren Uy, meanwhile, has been director of CLC since 2017.

F2 Logistics, however, is not new to the delivery of elections equipment and supplies. The company in 2018 was awarded the contract to deliver election paraphernalia for the 2018 barangay and Sangguniang Kabataan elections.