Security companies cry foul over huge regional contracts

The umbrella body for security organizations today said its members were unaware of a major contract awarded for the provision of security services in the regions and raised concerns that the process was being manipulated.

The Guyana Association of Private Security Organisations (GAPSO) also lamented the manner in which government tenders were being advertised in one particular section of the media, the Guyana Chronicle.

“Who buys the Chronicle? …Big contracts like these should be put in other newspapers nobody buys the Chronicle. I think that it is put there knowing that the wider public won’t see it. We talking about billions of dollars here. You mean big money contract like that and three people alone bid?” queried GAPSO Secretary, Retired Colonel George Gomes.

Gomes slammed the tender process for the provision of security services throughout regions 2, 3, 4, 5, 6 and 10 which saw companies submit billion-dollar bids and which were opened on January 22nd 2012. There were also bids for the provision of security services in regions 1, 7, 8, and 9 and for the security of the Ministry of Local Government and Regional Development. All the tenders saw bids from three companies: Strategic Action Security, Home Safe Security and RK’s Security Service.

“None of the companies that attended GAPSO’s monthly meeting (January 31, 2013) knew of any publication in any newspaper or government website requesting tenders for these projects…It is strange to think that with over twenty contract security companies in Guyana only three would be interested in such large projects”, a release from GAPSO stated today.

Gomes said that he checks government’s eprocure site daily and this contract was not one advertised. He complained that “every time is something with that site”.

Bidders for government contracts had expressed concerns in the past that they would miss notifications of contracts if there was not adequate coverage in the print media or online. They had also argued that the uneven publicizing of contracts works in favour of some bidders. The eprocure website was meant to have all of the ads that are being run in the Guyana Chronicle but this is not the case.

A visit, by Stabroek News recently, to the Government’s eprocure website at   http://www.eprocure.gov.gy/ reveals that there is little effort at updates to the online portal, meant to be a hub for persons to see all requests for proposals, invitation for bids to supply goods and services and vacancies. Many of the posts on the site are dated 2011.

Chief Executive Officer of RK’s, Roshan Khan, whose company was one of the bidders referred to by GAPSO said that they were not only tarnishing his company’s name but that the contract was advertised in the Chronicle and he had  read it. “I am very angry that they would be saying things about a collusion or conspiracy…It is probably due to the current management of GAPSO for thinking something so ludicrous …I read it and bid they need to read the … papers”, Khan declared.

GAPSO says that they feel that bidding for security services for the regions is grouped to deter the small security companies from bidding as they would require large sums as bid bond security.

“We have noted the attempt this year to separate the coastal regions from the interior regions. This is probably due to the inability of one company to serve the entire country as was the case with Strategic Action last year. It would be even better this year if each region’s requirements could be tendered for individually rather than as a block. With this method, a smaller … company would stand a better chance of being awarded a contract”, GAPSO’s press release stated.

“When they go to Parliament they ask for money as per region yet when it is tendered they put seven regions together. Why? Put it as individual regions because small companies sometimes cannot afford the bid security needed to go with contracts of that large sum of money”, Gomes explained.

Further, he stated that there are times when tenders are advertised and the deadline is too short to meet since many companies are unable to get together the relevant documentation such as compliance and bid bonds. “They give you three days to prepare. You can’t do that in three days. When you are giving big tenders like that you have to give at least two months…It takes, at minimum, one week to obtain the relevant National Insurance Scheme and Guyana Revenue Authority compliance”, he said.

The organization’s secretary informed that they have written to government to revise the tender process and in that letter they highlighted problems facing bidders. That letter was copied to the opposition, Minister of Home Affairs and Minister of Local Government Ganga Persaud.

Over the years there have been numerous complaints about the national tender process and whether it is fair and can withstand scrutiny. The government’s use of only the Chronicle and the eprocure website has also been severely criticized and seen as way through which limited information is available to the public on tenders.