Concerns over Region Three’s rejection of lowest bidders for works

Mar 27, 2018 News

Region Three REO, Denis Jaikaran

Members of the Public Accounts Committee (PAC) are alarmed over 22 instances when contracts were not awarded to the lowest bidders in Region Three (Essequibo Islands/West Demerara).
The contracts for capital works were awarded by the regional tender board which is headed by Regional Executive Officer (REO), Denis Jaikaran despite the evaluation committee’s recommendation to award the contract to the lowest bidder in each instance.
State auditors expressed concern that the tender board rejected the recommendation of the evaluation committee without a written explanation.
Jaikaran appeared before the PAC yesterday and indicated that the tender board took into consideration two major things – the engineer’s estimate and the geographical location of the work. He stated that the lowest responsive bidder might have completed the works higher than the engineer’s estimate.
This notion was rejected by PAC member, Juan Edghill.
“The purpose of competitive bidding is to ensure that you get the best deal and value for money. That’s why there is competitive bidding. The REO is telling us that if we awarded to the lowest responsive bidder you end up spending more. I didn’t understand that rationale,” Edghill stated.
PAC Member Nigel Dharamlall said in his opinion the REO is ‘sand dancing’ and pointed out that most of the contracts of concern were on the coast; hence, geographical location would not apply.
Dharamlall further drilled down into the 22 contracts, highlighting the contract awarded for the maintenance of internal roads at West Demerara Regional Hospital, which is one of nine contracts examined by state auditors.
Dharamlall pointed out that in that case, the contract was awarded to the contractor who bid $5.7 million, the eighth highest responsive bidder, while the lowest responsive bid was $4.8M.
Further, it was stated that the contractor who won the bid did not provide compliance documents from the Guyana Revenue Authority and National Insurance Scheme, which is mandatory.
Auditors told the PAC that these were instances of concern.
PAC Member, Pauline Sukhai also expressed concerns.
“I may have the means necessary to have jobs done at a lower rate than the engineer’s estimate, but the tender board is disallowing the contract. Those with the capacity to mobilize at a cheaper rate will never be allowed to win a contract,” Sukhai stated.

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