Dutch firm face off with rivals delays digital number plates

What you need to know:

J Knieriem got court orders stopping the signing of a Sh1 billion contract for the supply of materials for digital number plates after it claimed that it was excluded from the re-evaluation of bids for the tender.
The tender, which had been split into two, was for the supply of blank motor number plates and for hot stamping foil.

A Dutch company has blocked its Ugandan and Kenyan rivals from signing a Sh1 billion contract for the supply of materials for the proposed new generation number plates, as it seeks to have its bid for the lucrative tender accepted.

J Knieriem, the Dutch company, got court orders stopping the signing after it claimed that it was excluded from the re-evaluation of bids for the multi-billion shilling tender and an appeal against the results that should have seen it win the deal.

The Dutch firm claims in court filings that the Interior ministry carried out a re-evaluation of bids without notifying it, and that the Public Procurement Administrative and Review Board (PPARB) locked it out of an appeal hearing that arose from the fresh assessment of the bids.

The tender, which had been split into two, was for the supply of blank motor number plates and for hot stamping foil.

The blank plates tender was in September awarded to Kenyan firm Tropical Technologies, which had put in a bid of Sh1 billion, while the hot stamping foil deal went to Uganda’s MIG International, which bid Sh140 million. The Dutch firm had placed a bid of Sh1.3 billion for the blank plates tender.

J Knieriem now says that Tropical Technologies did not pass the technical evaluation stage as the local firm failed to obtain a manufacturer’s authorisation, which was mandatory for the tender.

J Knieriem adds that MIG’s Sh140 million bid for the hot stamping foil tender was not the lowest, as it had quoted Sh87 million.

The Dutch firm’s combined bid for the entire project was to cost Sh1.4 billion had it been named the successful bidder.

The Interior ministry further split the hot stamping foil tender into two, and named MIG the winner of one of the lots. It opted to re-advertise the second lot for hot stamping foil, a decision J Knieriem has also challenged.

“Without notification to J Knieriem, a re-evaluation process was carried out and a report was submitted to the board. On September 29, J Knieriem lodged an application requesting the PPARB for an opportunity to be heard. The PPARB refused to hear J Knieriem’s application and went ahead to deliver its decision. Unless the court intervenes, the Interior ministry will enforce the decision of the PPARB to the detriment of J Knieriem,” the Dutch firm says.

READ: Motorists to buy digital number plates at Sh3,700

But Tropical Technologies says in its response that its alleged failure to obtain a manufacturer’s authorisation was dealt with in an appeal before the PPARB last year and that the matter cannot be determined again in the High Court case.

The local firm insists that the PPARB and Interior ministry were complying with court orders when they re-evaluated bids for the mega deal and dealt with consequent appeals against the results.

“In compliance with the court order, the PPARB reheard all the parties affected by the tender in issue and delivered its award on September 29, 2016. In compliance with the court order, the Interior ministry issued the letter of award to Tropical Technologies who duly accepted on October 14. The present proceedings are therefore overtaken by events and futile,” Tropical Technologies holds.

J Knieriem says that following re-valuation of bids between August and September MIG and Germany’s Hoffman International were declared winners of the two tenders.

Hoffman had bid Sh690 million for the blank plates tender.

But Tropical Technologies successfully challenged the award and was instead declared the winner.

J Knieriem now says the PPARB notified it of proceedings after hearings had started, and that its request for time to be heard was dismissed.

High Court judge George Odunga ordered that J Knieriem enjoin MIG International to the suit alongside Germany’s Hoffman International, which was among evaluated bidders, to the suit.

The new generation number plates were supposed to be rolled out in September as part of a plan by the government to crack down on carjackings and other crimes committed using cars.

Appeals against evaluation results and court cases have, however, dragged the project.

Through the computerised number plates, police will be able to trace information on a particular vehicle and its owner, a move that will also help other agencies like the Kenya Revenue Authority track individual vehicles.