That $605 million contract for the procurement of drugs and medical supplies

Because of space constraints, there were a few matters which we were unable to cover in last week’s article entitled “We must refrain from distorting the truth and seeking to distort history”. In that article, we referred to the Engineer’s Estimate as the main reference point for tender evaluation and indicated that the preparation of faulty estimates is one of the sources of leakages in our procurement systems. The Opposition Leader challenged our statement and contended that contracts are awarded based on the “lowest prequalification cost” and therefore such estimates do not matter. An Engineer’s Estimate, it must be said, is an independent estimate of the works to be carried out, including bills of quantities, prepared by a competent and experienced person or group of persons to be used as a guide in the evaluation of tenders. It is defined as “the detailed cost estimate for a project, computed by estimating the cost of every activity in a work breakdown structure, summing these estimates, and adding appropriate overheads”.  It is also called “bottom up cost estimate”.

On the other hand, prequalification is application of specific procedures in order to identify, prior to the submission of tenders in procurement proceedings, suppliers and contractors who are qualified to participate in such proceedings. …to continue reading this article, please subscribe.  Already a subscriber ? Sign In.

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