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US$18M Specialty Hospital … Govt. to re-evaluate award of contract

Sep 06, 2012 News

Government will be re-assessing the award of the US$18M contract to Surendra Engineering Corporation Limited of India to build a specialty hospital at Turkeyen.
Construction Firm, Fedders Lloyd Corporation Limited, which submitted one of the lowest bids for the project, has protested the award of the contract.
Dr. Roger Luncheon at his weekly post-Cabinet press briefing yesterday, confirmed that the aggrieved bidder lodged a protest with the procurement entity, Ministry of Health.
He noted that this is in accordance with protest provisions under the Procurement Act.
“With the provisions in law, I see no other alternative than to have this entire award reassessed and the basis for the protest examined,” Dr. Luncheon stated.
The hospital is being funded with a line of credit from India of US$18 million. Government intends to staff the hospital with specialists from India to do complicated surgeries, ranging from heart operations and organ transplants to cosmetic surgery.
Fedders Lloyd had asserted that Surendra Engineering should have been disqualified as a bidder. “As per the bid opening readouts, we noticed that the Bank Guarantee submitted by Surendra Engineering was on the Indian bank letterhead and it was never confirmed by any local bank in Guyana…
This outrightly disqualifies Surendra Engineering and makes them a non-responsive bidder in the first place.”
Five bids were opened on June 26, last: – Surendra Engineering – US$18,180,000 (submitted with design); Fedders Lloyd US$17,679,000 (submitted with design after a discount of 23%, discount letter provided); Shapoorji Pallonji – US$42,473,600 (submitted with design); Jaguar Overseas Limited – US$18,650,000 (submitted with CD); Vydehi Institute of Medical Sciences and Research of India – US$19,500,000 (no design submitted).
Fedders Lloyd said that during the bid opening they observed that despite their discount letter being attached in the financial bid, the Chairman of the Tender Committee refused to announce the discount letter.
“It was only on the repeated insistence of our representative, Mr. Ajay Jha, that the discount letter was finally read out and the discount announced as 23 percent quoted price, thus making our final price as US$17,679,000.”
The company had insisted that it is unaware what government is talking about when it said Fedders Lloyd had been rejected on “Administrative Grounds’. It said that disqualification was always the technical aspect or the financial aspect, and on both grounds, it was ahead of Surendra Engineering.
Fedders Lloyd said it participated in the tender process by forming a consortium with Nous Hospital Consultants, which has expertise in building and commissioning specialized hospitals and has already commissioned more than 90 hospitals in India and abroad.
Furthermore, Fedders Lloyd pointed out that it has experience in almost 30 countries around the globe in the sectors of education, health, agriculture and power, and with an annual turnover of around US$700M.

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