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NPTAB defends decision to award GY$865.5 million pump contract to Tepui Group Inc; mum on company’s experience

Denis Chabrol by Denis Chabrol
Thursday, 5 October 2023, 7:55
in Business, News, Politics
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Last Updated on Thursday, 5 October 2023, 7:55 by Denis Chabrol

The National Procurement and Tender Administration Board (NPTAB) on Wednesday defended its decision to award a GY$865,543,500 contract to construct a pump station at Belle Vue, West Bank Demerara, in the wake of a formal request by Alliance For Change (AFC) executive member and opposition parliamentarian David Patterson for Guyana’s Public Procurement Commission (PPC) to conduct a probe.

NPTAB, in defending its decision, was silent on Mr Patterson’s core objection that Tepui Group Inc. did not meet the requirements of the bid documents to have a completed projects of a similar nature and size within the last three years because that company was established in August 2022.

Instead, that Board said 13 of the 26 bids for the construction of the Belle Vue Pump Station project were deemed non-responsive and so were not considered for award and in the end Tepui was the third lowest priced responsive bidder.  “Clearly, therefore, merely looking at the bid price announced at the opening of the bid cannot be used to adjudge the winning bidder and, worst yet, be used to impugn the integrity of the evaluation process and subsequent award of the contract.

For its part, NPTAB said none of the other competing bidders has challenged the award of the Belle Vue pump contract to Tepui Group Inc. on August 14, 2023.

Guyana’s Constitution provides for the PPC to investigate investigate complaints from suppliers, contractors and public entities and propose remedial action; investigate cases of irregularity and mismanagement, and propose remedial action, and initiate investigations to facilitate the effective functioning of public procurement systems. Mr Patterson asked that the PPC to take the necessary actions against the entities and individuals associated with this award if the award is proven defective.

The former Minister of Public Infrastructure noted there were 26 bidders. The Directors of Tepui Group are reportedly listed as Winston Martindale, Paul Rodrigues, Michael Rodrigues, Sunnil Bhagwandin and Francis Arokium (Secretary).

NPTAB said the evaluation of bids by a three-member independent team based on criteria “alone” form the basis for its recommendation go the Board and the Board’ award is subject to a no-objection of Cabinet if the value of the award is above GY$15 million.

According to the Board if bidders do not provide valid business registration, valid Guyana Revenue Authority and National Insurance Scheme compliances, applicable bid security, signed bid form by the authorized representative of the firm, and any other document required by the bid document, “non-compliance with any of these would result in the bid not being considered for further evaluation.”

Other procedures include an arithmetic check to correct any discrepancy as this may result in the actual bid price being different from what was called at the opening of the bid, and an assessment of technical and financial capacity. “This includes that the bidder demonstrates specific construction experience and evidence of financial capacity.”

Bidders must meet the stated equipment and human resources requirements in the bid document. NPTAB also ruled out bidders who have three or more outstanding contracts from any public sector agency being considered for award. An outstanding contract is one where more than 20% of the value of the contract is not completed as per original contract deadline for final completion, the board explained.

The Board slammed opposition APNU+AFC parliamentarian Ganesh Mahipaul’s views about the process as “political gimmickry”.

Mr Mahipaul has called for the Procurement Act to be amended to provide for opposition representation on NPTAB.

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