The Public Procurement Commission (PPC) has written to Opposition Member Ganesh Mahipaul seeking clarification on his request to investigate several multimillion-dollar contracts.
Mahipaul, in a letter to the PPC, dated October 9, 2023, highlighted that lack of experience on the part of the contractors had resulted in projects being significantly delayed. He also said that contracts were not being awarded to the lowest and most responsive bidder.
In response, the PPC CEO Michael Singh in a letter asked Mahipaul to clarify his statement as to what specifically he wanted investigated – the National Procurement and Tender Administration Board (NPTAB) or specific contracts.
“Further, your attention is drawn to the procurement (suspension or debarment) regulations 2019, should you have such evidence in your possession for a grant of an order thereafter,” Singh’s letter said.
The regulations, according to the PPC data provided online state that “The conduct of debarment proceedings by the PPC is governed by the Procure-ment (Suspension & Debarment) Regulations 2019. A procuring entity or any person may submit a proposal for the debarment of a contractor or supplier. A contractor or supplier who is debarred by the PPC is prohibited from participating in public procurement for the debarred period which shall be for not less than one year and not more than ten years. Regulation 13(2) of the Procurement (Suspension & Debarment) Regulations 2019 provides that- 1. solicit or accept bids, proposals or quotations from a debarred supplier or contractor; or 2. consider bids, proposals or quotations submitted by a debarred supplier or contractor prior to the suspension or debarment.”
Mahipaul, acknowledging the response from the PPC, said he believed that his request for an investigation was clear.
Mahipaul’s letter to the PPC highlighted several projects that were cause for concern. “All the projects are way past their completion date and are not even 30% completed. My contention is that the awardees did not satisfy the standard evaluation criteria and should not have been awarded the contracts in the first place,” he wrote.
He was referring to the contracts to construct pump stations at Cottage, West Coast Berbice in Region Five and Black Bush Polder in Region 6, which were awarded by the NPTAB in 2021; as well as the Charity, A-Line and Canal Number One contracts which were awarded in 2022.
“The standard evaluation criteria required that bidders demonstrate specific construction experience by providing copies of contracts with previous clients that showed the bidder had completed two contracts of similar nature, size and complexities of a minimum value of 50% of the Bid price within the past five years,” he wrote.
Mahipaul said he thought the contractors did not meet this requirement.
On the other hand, Mahipaul also called for an investigation into the awards for contracts for the construction of pump stations at Pouderoyen in Region Three and Jimbo/Grove, East Bank Demerara.
He added that an investigation should also be launched “Specifically, with regard to the construction of the Belle Vue Pump Station project; 26 companies tendered for that project. Thirteen bids were deemed non-responsive and were therefore not considered for award. Of the thirteen substantially responsive and compliant bids, the lowest-priced responsive bid was awarded the Meten-Meer Zorg Pump Station, while the second lowest responsive bid was awarded the Jimbo/Grove Pump Sta-tion. Tepui was the third lowest priced responsive bidder and was awarded the Belle Vue Pump Station,” he wrote.
Mahipaul had noted that the Belle Vue Pump Station project indeed attracted 26 bidders but NPTAB omitted to mention that the Meten-Meer-Zorg Pump Station saw a participation of 27 bidders, while the Jimbo/Grove Pump Station garnered interest from 30 bidders. Additionally, the Pou-deroyen Pump Station enticed 23 bidders.
“NPTAB’s assertion that 13 bids were deemed non-responsive pertains, I presume, specifically to the Meten-Meer-Zorg Pump Station. However, concerning the Jimbo/Grove Pump Station and the Belle Vue Pump Station, NPTAB contends that the second lowest responsive bid and the third lowest priced responsive bidder secured the contracts. This tacitly concedes that the lowest responsive bidders for the Jimbo/Grove and Belle Vue Pump Stations were overlooked, and it is incumbent upon the PPC to investigate the rationale behind this deviation from the norm,” Mahipaul added.
