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Contractors object to $55M dump truck deal awarded to mining company
A $55M million contract award for the supply of two dump trucks to the Ministry of Public Infrastructure has raised questions.
Contractors are objecting to what they consider a questionable award of a multimillion-dollar contract for two dump trucks to the Ministry of Public Infrastructure.
The award for $55.4M was recently made to a company called El Dorado Trading – a company with virtually no experience in supplying equipment to Government – the contractors are claiming. Rather, that company is involved in mining.
A protest is being prepared by lawyers raising objections and asking for a review of the evaluation process.
According to documents seen by Kaieteur News, in March 2016, the Ministry of Public Infrastructure (MPI) issued an ‘Invitation for Bids’ for the supply and delivery of two lots.
The first lot was for two dumps trucks – each with capacity of 20 cubic yards. The trucks were for the ministry’s Special Projects Unit. The tenders were opened on April 12.
According to bid information, eight offers to supply the trucks came in.
They were Dax Contracting – $70,200,000; Car Care Enterprise – $42,500,000; S. Jagmohan Hardware Supplies and Construction Services- $57,600,000; El Dorado Trading – $55,400,000;
R. Bassoo and Sons – $46,970,000; Industrial Supply of Guyana – $51,639,840; Samaroo Investment – $84,100,000 and Japarts – $50,000,000.
It meant that of the eight tenders, four were below that of El Dorado Trading.
The Engineer’s Estimate was $48M.
Two contractors who complained said that according to the bid documents, there were specific conditions for the companies submitting tenders. To qualify, the companies had to show experience as a supplier in carrying out one or more supplies in the last five years.
The bid documents also said that the Ministry would award the contract to the bidder whose proposal was determined to be substantially responsive to the requirements of the bidding documents and who offered the lowest evaluated bid. This is providing that the bidder had been proven eligible.
According to the contractors, there is no evidence that the mining company has experience in supplying equipment to the Ministry before.
At least 50 percent of the monies have to be paid within one month of the contract being signed, with the balance on delivery.
Over time, there have been complaints of the handling of tenders by the National Procurement and Tender Administration Board, with accusations of corruption in the bidding process.
A new board was installed last year with Government announcing the establishment of a Bid Protest Committee a few months ago.
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