Two decisions by the Public Procurement Administrative Review Board (PPARB) this week have signalled a looming battle over the lucrative tenders for pre-export inspection of motor vehicles and other goods by the Kenya Bureau of Standards (Kebs).
On Monday and Tuesday, the board delivered two decisions both of which found that Kebs had failed to comply with the provisions of the Public Procurement and Asset Disposal Act, and the attendant regulations when it invited bids for the tenders.
As such, the board directed Kebs to extend the bidding by a further 14 days following a review request lodged by a company known as Five Blocks Enterprises Ltd. It was just three days before the deadline for bidding elapsed when the board intervened.
In the decisions, Kebs was found to have “breached the provisions of section 158 of the Act read together with Section 157 (8) of the Act and Regulation 164 of Regulations 2020 for failure to provide for a margin of preference in the tender document.
“Further, the board has established that the tender document does not provide for financial evaluation criteria in compliance with Regulation 77 of Regulations 2020, noting the procuring entity’s failure to provide in its financial evaluation criteria how it shall apply any margin of preference in the subject tender in accordance with Regulation 77 (2) (d) of the 2020 Regulations,” PPARB said.
Kebs was also faulted for having failed to “expressly indicate in its invitation to tender of its intention to establish a framework agreement, the number of suppliers or contractors in the said agreement (which should not be less than seven alternative vendors), the evaluation criteria and an estimate of the total volume or scope of work to be undertaken for the duration of the framework agreement in compliance with Regulation 102 (1) of the Regulations 2020.”
An extension of the bidding period that Kebs had effected was also cancelled as the board found that it was communicated after the review had been filed.
Kebs advertised the tenders for Provision of Pre-Export Verification of Conformity (PVOC) both for used motor vehicles and spare parts and for other goods on January 19 and the initial closing date of February 10 was extended to February 25. With the latest PPARB decision, the bidding will go to mid-March.
Despite the rulings by PPARB, Kebs managing director Bernard Njiraini told the Sunday Nation that the petition by Five Blocks Enterprises Ltd was misleading.
“We followed the due process and the extension was procedural and in line with the Public Procurement and Asset Disposal Act,” he said.
The PVOC tenders are often lucrative and attract vicious bidder rivalries given the monies involved.
The winner of the tender generates revenues of nearly Sh1.5 billion a year and the contract runs for three years.
In the past, Kebs senior management has been accused of favouring certain bidders, including ignoring adverse reports from other government agencies on the suitability of the bidders.
