PPAB Cancel Drainage Works Tender By Kisumu City County Government

By The Weekly Vision Team

The Public Procurement Administrative Review Board has cancelled a multimillion-shilling tender awarded by the Kisumu City County Government. The Kisumu tender committee had awarded tender No.CGK/LLHPPUD/KISP2/NOT/2023-2024/001 for road and drainage works, water and sewerage, and public lighting works in Bandani, Nyawita, Migosi, and Manyatta A and B settlements areas, but the board cancelled the tender and ordered a re-evaluation.

During the tendering process, ten firms sent their bids, and the evaluation committee carried out a preliminary evaluation. Only three tenders were found to be responsive, which preceded the detailed examination of bids. The firms Rural Distributors Limited, Waaso Construction Company Limited, Barbat Sitani Construction Ltd., Decotec Enterprise Ltd., Firm Bridge Ltd., Kisumu Concrete Products Ltd., Adawa Investment Company, China-Jiangxi International Economic Corporation Co. Ltd., and Octagon Builders and General Suppliers Ltd. participated in the process.

Chaju Builders LTD quoted Ksh. 1,122,491,347; China-Jiangxi International Economic Corporation Co. LTD quoted Ksh. 1,228,000.616.83; and Decotec Enterprise LTD quoted Ksh. 1,327,219,728.45. At the end of the evaluation, Chaju Builders LTD was considered adequate for the smooth implementation of the project, having established that it understood the requirements of the proposed works, demonstrated the availability of adequate financial resources to undertake the proposed works, demonstrated hands-on experience in similar works, which was considered adequate, had proposed personnel with adequate qualification and experience, demonstrated access to specialized roads, drainage, water, and sanitation works, as well as 8 electrical works equipment, hence qualified to undertake the proposed works in the subject tender.

The Evaluation Committee recommended the award of the subject tender to Chaju Builders LTD at a price of Kshs. 1,122,491,347 (including VAT). In a professional opinion dated September 13, 2023, Ms Joan Kanjejo, Director of Supply Chain Management, reviewed how the subject procurement process was undertaken, including the evaluation of tenders, and concurred with the recommendations of the Evaluation Committee concerning the award of the subject tender.

Thereafter, Mr. Victor Kanyaura, Chief Officer, LPPH & UD, approved the professional opinion on September 20, 2023. Tenderers were notified of the outcome of the evaluation of the subject tender via letters of notification of intention to award dated October 3, 2023.

Kisumu Concrete Products Ltd. filed a Request for Review dated October 16, 2023, together with a Statement in Support of the Request for Review made on October 16, 2023, by Vimal Lalji Rabadia, its Director and Shareholder. In his application, Kisumu Concrete Products Ltd. prayed that the Evaluation Committee reinstate their tender at the Financial Evaluation Stage and evaluate their tender price for the first respondent to make an award of the subject tender.

Kisumu Concrete Products Ltd.’s case was that it submitted its tender in response to the subject tender and was served with a letter of notification of intention to award dated October 3, 2023, which informed it of its unsuccessfulness because it submitted qualified forms were not signed by the person authorized to sign its Power of Attorney.

The board noted, “The board is cognizant of Article 227 of the Constitution, which requires the second respondent to have a procurement system that is fair, equitable, transparent, competitive, and cost-effective and provides for legislation that governs public procurement and asset disposal frameworks.”.

The final order by the board reads “The letter of notification for intention to award the tender to the interested party dated October 3, 2023, is hereby nullified and set aside”.

Other orders read, “The accounting officer of Kisumu County Government is hereby directed to admit the applicant’s tender to a detailed examination of the bid stage and conduct a re-evaluation of all tenders responsive to the detailed examination of the bid stage”. Further, the board ordered, “The respondents are hereby directed to proceed with the procurement process to its logical conclusion”.