The public procurement watchdog has overturned the award of a multi-million shillings tender to provide letting and management services for the National Health Insurance Fund (NHIF) building, its car park complex and Contrast House in Nairobi.
NW Realite Limited filed the petition, which was challenging the award of the tender to rival Gimco Limited on grounds that its bid was disqualified yet it qualified for the job.
The Public Procurement Administrative Review Board has now agreed with NW Realite Limited’s prayers, saying the evaluation committee should admit the firm’s tender at the technical evaluation stage.
“The letter of notification of intention to award the contract to the interested party dated October 3, 2022, for the provision of letting and management services for the NHIF building, car park complex and Contrast House, be and is hereby nullified and set aside,” the board said in a ruling dated November 7.
The feud arose with the NHIF invitation in August 2022 of bids to provide leasing and management services for the NHIF building, its Carpark Complex and Contrast House.
The tender that was meant to see the winner earn 2.9 per cent in management fees, and 4.35 per cent in letting fees respectively all-inclusive of 16 per cent value-added tax attracted six bidders whose proposal was opened in September 2022.
The bids included NW Realite Valuers and Property, Laser Property Services, Regent Management Limited, Gimco Limited, Ebony Estates Limited and Crystal Valuers Limited.
At the technical evaluation, two tenders were found to be non-responsive which included NW Realite Limited’s tender.
After a financial evaluation, the tender committee recommended that the contract be awarded to Gimco Limited.
NW Realite Limited however requested a review saying that the decision by the procuring entity to award the tender Gimco Limited is to be annulled and set aside. They claimed they had the financial muscles to deliver the contract.
They also wanted the board of the procurement watchdog to order a re-evaluation of the tender and award it to the suitable bidder arguing that its bid was unfairly knocked down at the preliminary evaluation stage.
The procurement watchdog has concurred with NW Realite Limited application saying the applicant was knocked down unfairly.