The Transportation Department said it signed a one-year phase-out agreement with Stradcom Corp., the information technology provider of Land Transportation Office, since 1998.
The agreement was laid down to allow LTO to subscribe to a new IT service provider covering hardware, software and data component requirements of the agency, and to give Stradcom time to turn over the source code and database to the government.
Transportation Secretary Arthur Tugade said Stradcom should its part in helping the smooth migration of data and computer operations to the next IT provider of the LTO. The agency said it would take one to two years to change an IT provider as it would include data migration.
The Transportation Department in turn agreed to settle the P8-billion debt of the government to Stradcom. It also agreed to allow Stradcom to join the bidding as it was open to all qualified bidders who were capable to provide the requirements set in the terms of reference.
The procurement of the P8.2-billion LTO IT system was ordered in 2011. The following year, the department split the contract into two, due to the bidders’ failure to qualify for the project’s broad scope.