Agriculture and Livestock Principal Secretary Fred Segor said that the money will go towards the implementation of regional Pastoral Livelihoods Resilience Project (RPLRP) aimed at ending drought, emergency and livestock diseases. FILE PHOTO |
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The tender has attracted 209 concerns and requests for clarification with most bidders questioning the rationale of restricting the tender to original equipment manufacturers (OEMs).
The requirement that the manufacturers must also supply the entire specified equipment, including the ones they do not make, has raised the alarm among the bidders.
Bidders reckon the restrictive conditions will only benefit big multinationals on claims that most firms will be locked out.
The Sh34 billion tender for leasing medical equipment to county hospitals is the latest State contract to be hit by tendering wars on claims that requirements have been designed to lock out many potential bidders.
Official records showed the tender has attracted 209 concerns and requests for clarification with most bidders questioning the rationale of restricting the tender to original equipment manufacturers (OEMs).
The requirement that the manufacturers must also supply the entire specified equipment, including the ones they do not make, has raised the alarm among the bidders.
The bidders said most local manufacturers would be locked out of the tender because they specialise in single product lines and import medical kit.
This puts the medical kit project at risk of joining the growing list of mega State projects that have been rocked by tendering disputes including the Sh170 billion coal-fired power plant in Lamu, free laptop tender (Sh24 billion) and Mombasa-Nairobi new pipeline (Sh43 billion).
The health ministry—which is shepherding the process-- has defended the restrictive tender rules, and advised the bidders to form consortiums to meet the requirement for the lot supply of specified equipment.
At a stake are annual leasing fees of about Sh3 billion from the 10 year-lease contract in a shift that will save the government huge upfront costs in purchase and maintenance fees.
Bidders reckon the restrictive conditions will only benefit big multinationals on claims that most firms will be locked out.
“For example, manufacturers who make anesthesia machines usually do not manufacture electro-surgical units, linen trolleys or operating theatre lights,” German Healthcare Services said in a letter to Health Secretary James Macharia.
“Even within the large group of surgical instruments listed in the tender, there are in some instances where very different manufacturers are involved.”
Several multi-national giants such as Phillips Healthcare and General Electric are expected to have a head-start in the deal. The tender has seven lots or categories of equipment, including theatres, intensive care unit (ICU), radiology, renal and diagnostic laboratories.
“The ministry will only award the tender by lots,” then Health principal secretary Fred Segor maintained in response letter to the concerns by the bidders and urged them to form consortiums of OEMs.
“The ministry will not deal with multiple members of the same consortium.”
Successful bidders are expected to supply, install, test, train users, replace and maintain the medical equipment in 94 Level 4 and 5 hospitals in first phase of the project and earn.
The bids will be opened on Monday and the contracts awarded on November 1, but some bidders are asking for an extension and a pre-bid conference.
The health ministry has ruled out the pre-bidding conference, which are conducted to provide specific tender information, explain any unusual aspects of the project and address any potential bidder questions.
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