The Public Procurement Administrative Review Board has cancelled a multi-million shillings Security Services tender which had been irregularly awarded to Makini Security Services and ordered a fresh procurement process in full adherence to procurement laws.
In an application dated 21st July 2023 (Application NO. 51/2023 OF 21ST JULY 2023) Intercity Secure Homes Limited had applied for a review in tender No. JKUAT/13/2023- 2025 for Provision of Security Services. Several tenderers were recorded as having submitted their respective tenders in response to the subject tender. At the end of the evaluation stage, 15 tenders, including that of Intercity Secure Homes Limited were found unresponsive with only 8 tenders qualifying for further evaluation.
The Evaluation Committee thereafter requested the user department to provide information on the following 4 tenderers who had previously offered security services to the Procuring Entity i.e. Lavington Security Limited, Babs Security Services, Flashcom Security Limited and Anchor Security Services Limited.
According to the Evaluation Report, all 4 tenders were disqualified by the Evaluation Committee after it emerged that the tenderers failed to curb burglary at the Procuring Entity’s premises as well as reported cases of misconduct and poor rapport with the Procuring Entity’s students.
The Evaluation Committee conducted due diligence on 4 of the tenderers who were yet to be disqualified by visiting their physical premises. The Evaluation Report indicates that the 4 tenderers who included Makini Security Services were found responsive and thus qualified for further evaluation.
At the end of the evaluation stage, Makini Security Services was found as the most responsive tender having garnered the maximum score of 100 at this stage. The Evaluation Committee determined the tender offered by Makini Security Services as the lowest evaluated responsive tender that passed the due diligence test and recommended the award of the subject tender to Makini Security Services at the tender price of Kshs. 46,999,992.
In a Professional Opinion dated 11th July 2023, the Chief Procurement Officer, Ms Kellen Njiru, reviewed how the subject procurement process was undertaken including the evaluation of tenders and recommended the award of the subject tender to Makini Security Services.
It was noted that the approved budget in the subject tender was set at Kshs. 45 Million. Tenderers were notified of the outcome of the evaluation of the subject tender vide letters dated and signed 12th July 2023.
Intercity Secure Homes Limited then applied for review through an affidavit deponed on 21st July 2023 by Gladwell Mwiti, citing that t Makini Security Limited took up the Procuring Entity’s premises before notification of award in the subject tender had been made. He indicated that the deponents of the 4 affidavits were former employees of Makini Security Limited and also sought that the Board directs the Procuring Entity to furnish the CCTV surveillance footage in respect of its premises.
However, JKUAT lead Counsel Mr Momanyi, argued that the Procuring Entity was yet to hand over its grounds to be manned by Makini. He pointed out that Intercity Secure Homes Limited was disqualified after it failed to supply a duly filled declaration form that it was not debarred as well as a valid insurance for WIBA and contractual fidelity policy documents.
In a ruling dated 11th August 2023, the board ordered that the Procuring Entity’s letter of Notification of Award dated 12th July 2023 and addressed to the Applicant in respect of Tender No. JKUAT/13/2023-2025 for Provision of Security Services be and is hereby cancelled and set aside.
The board went further to give orders that “The Procuring Entity’s letters of Notification of Award dated 12th July 2023 and addressed to the other tenderers including the Interested Party, Makini Security Services Limited, in respect of Tender No. JKUAT/13/2023-2025 for Provision of Security Services be and are hereby cancelled and set aside”.
The board directed that “The 1 st Respondent be and is hereby directed to reconvene the Procuring Entity’s Evaluation Committee for purposes of conducting a fresh evaluation of the tenders submitted in respect of Tender No. JKUAT/13/2023-2025 For Provision of Security Services from the Preliminary Stage and that the evaluation should be concluded within the next 14 days from the date of this Decision taking note of the Board’s findings herein”.