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Rejected contractors can appeal to Bid Protest Committee – NPTAB Chairman
Chairman of NPTAB, Berkley Wickham
Chairman of the National Procurement and Tender Administration Board, (NPTAB), Berkley Wickham has said that there are existing mechanisms for rejected contractors to protest the selection of bids.
Wickham noted that the system has been in place to ensure that the procurement of goods, services and the execution of works are conducted in accordance with the relevant laws.
According to Wickham, the Bid Protest Committee under the Public Procurement Commission (PPC) would review the report of a disgruntled contractor to determine whether his/her claims can be substantiated.
The NPTAB Chairman stressed that the committee provides a forum for contractors to air their concerns about the tender process and have those concerns addressed.
His comment comes in wake of a complaint by a small contractor who raised questions over the manner in which contracts are awarded by the State. The contractor, who spoke to Kaieteur News on the condition of anonymity, raised questions about the award of contracts at the level of NPTAB.
The contractor complained of the selection process, which he says, favours large contractors. “Whenever the government puts out tenders for big projects, the projects most likely find themselves in the hands of the big contractors, even though small contractors offer to do the work for far less.”
However, the NPTAB official clarified that contracts are not awarded merely on the basis of cost. There is a list of technical and administrative criteria that a contractor is required to satisfy before the contract is awarded.
Wickham specified that the list includes a compliance certificate from the National Insurance Scheme, (NIS), Guyana Revenue Authority, (GRA) – which is to ensure taxes are up to date, a business registration certificate, and bid security — a small percentage paid as part of securing the bid.
Additionally, he said, the company must provide documentation outlining the capability of its workforce, experience and financial capability to complete the project.
“Contracts are not awarded based on the lowest cost [offered to do a project] but the lowest evaluated bid.”
Wickham emphasized that if a contractor is dissatisfied with the manner in which the project is awarded, he has the option of raising it at the level of the Bid Protest Committee.
The committee was initially under the purview of the Tender Administration Board and later moved to the PPC.
“That mechanism is in place to assist contractors who want to protest the tender.
Additionally, the Tender Board Chairman said that it would be useful if agencies notify the unsuccessful bidders as to the reasons why they were not selected.
“Contractors can also inquire from the subject agencies why their bid was selected for the project. It would serve to help guide them, where they went wrong and how they can avoid mistakes in future bids, because there are instances where a contractor fails to do simple things such as sign off on a bid document.”
Last weekend, a small contractor who complained of the selection process, which he says, favours large contractors, highlighted a scenario in which he believes he was duped out of a contract. He claimed the contract was eventually awarded to Courtney Benn Construction Services—a well known firm.
The project in question is for the construction of the Ministry of Finance Annex.
The three-storey, multimillion-dollar annex is being constructed at the site of the former sports club of the Guyana National Cooperative Bank (GNCB), on Winter Place and Croal Street in Georgetown. The annex will house the ministry’s training room, a sports complex, a gym and the Camp Street valuation office.
The small contractor had claimed that the project cost $228M. Additionally, government’s website had also quoted that figure as the cost of the project. However, Courtney Benn Construction provided correspondence from the Finance Ministry which showed otherwise.
In a letter dated, December 21, 2017, Finance Secretary Hector Butts, writing to the contractor, notified him that the amount for the project had been corrected.
“This is to notify you that your bid dated the 11th day of July 2017, for the execution of the construction of Ministry of Finance New Annex building, 77 Croal Street, Stabroek Georgetown, Region Four, to the total corrected sum of $191,674,437 in accordance with clause 30 of the instruction of bidders and for the correction of any defects therein is thereby accepted by our organization.”
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