{"id":123177,"date":"2014-09-04T10:56:32","date_gmt":"2014-09-04T14:56:32","guid":{"rendered":"http:\/\/dominicanewsonline.com\/news\/?p=123177"},"modified":"2014-09-04T13:20:46","modified_gmt":"2014-09-04T17:20:46","slug":"paid-advertorial","status":"publish","type":"post","link":"https:\/\/dominicanewsonline.com\/news\/homepage\/news\/paid-advertorial\/","title":{"rendered":"PAID ADVERTORIAL: Government\u2019s Pays 24% More than Market Price (Part 2)"},"content":{"rendered":"


\n\"roseau-project-300x283\"Part 2 – Questionable Procurement Practices and Contract Awards.<\/strong><\/p>\n

    \n
  1. 1. The Government of the Commonwealth of Dominica brought the Public Procurement and Contract Administration Act to be passed in parliament because either:\n
      \n
    1. \u00a0 \u00a0 a) It saw it as the right and appropriate way to go, or<\/li>\n
    2. \u00a0 \u00a0 b) It was forced to do so against its nature.<\/li>\n
    3. <\/li>\n<\/ol>\n<\/li>\n
    4. 2. If (a) is correct, it would have as soon as possible commenced aligning government procurement practices with the requirements of the Act and sought to ensure that the purposes of the Act were gradually being achieved even before the coming into force of the Act.<\/em><\/li>\n
    5. <\/li>\n
    6. 3. It must be remembered that:\n
        \n
      1. \u00a0 \u00a0 a) The Act was assented to by President E.T. Williams on 21st<\/sup> Jan 2013, and that it can only come into force by Order of Minister of Finance or by the 21st<\/sup> Jan 2015, whichever comes first.<\/li>\n
      2. \u00a0 \u00a0 \u00a0 b)That the private sector led by the BCAD has repeatedly asked the GOCD to<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n

         <\/p>\n

        i.\u00a0\u00a0\u00a0 Put all that is necessary for the coming into force of the Act,<\/p>\n

        ii.\u00a0\u00a0\u00a0 Involve the private sector in the process, and<\/p>\n

        iii.\u00a0\u00a0\u00a0 Begin aligning the government procurement practices with the requirements of the Act.<\/p>\n

          \n
        1. It must be noted, that the grand majority of the requirements of the Act are typical internationally best practices aimed at obtaining best value for money by the government and stemming corrupt practices.<\/li>\n
        2. Recent public procurement practices are far removed from the required practices under the Act, and by extension typical open and transparent procurement practices.<\/li>\n<\/ol>\n

          The Government of the Commonwealth of Dominica, led by Roosevelt Skerrit, has awarded a contract for the construction of the first phase of the Roseau River Promenade for 24% or approximately EC$108,000.00 more than the lowest competitively priced tender!<\/p>\n

          This situation clearly highlights why BCAD has taken the nationally responsible stance to press the government to pass and then enforce the Public Procurement And Contract Administration Act.\u00a0\u00a0\u00a0 As BCAD\u2019s president Stewart Paris said to a reporter at its last press conference: \u201cIf the procurement bill is enforced, there will be less reason to ask about corruption!\u201d. \u00a0 \u00a0<\/em><\/p>\n

          Eight weeks after the tender process ought to have been completed, and 5 weeks after ACE Engineering Ltd requested the status of the works for the first of a number of times, we are still not given any status on the tender process.<\/p>\n

          Given the fact that the Contract was awarded to a firm for which George Nanthan is reported to own shares, it is rather obvious that all other tenders were rejected.<\/p>\n

          If the GOCD passed the PPCA Act because it saw it as the right and appropriate way to go, it is a reasonable assumption then that the GOCD would use the requirements of the Act as the yardstick to guide public procurement process, and appropriately to guide the evaluation of tenders and award of all procurement contracts.<\/p>\n

          What does the ACT say about Award of Contract?<\/p>\n

          Sec 59 (1) of the Act states:<\/p>\n

          (1) Subject to this section and section 60, a procuring entity shall award the procurement contract to the bidder who submits the lowest evaluated substantially responsive bid which meets the qualification criteria specified in the pre-qualification or bidding documents.<\/p>\n

          We would want the Technical Services Division to say where ACE Engineering Ltd\u2019s was not substantially responsive, or where we did not meet the qualifications required in the bid.<\/p>\n

          What are the circumstances by which a bid should be rejected?<\/p>\n

          Sec 57. <\/strong>(1) The procuring entity shall reject\u2014<\/p>\n

          (a) <\/em>every bid received after the closing date and time for the submission of bids; (the record shows our bid was received on time)<\/em><\/p>\n

          (b) <\/em>any bids having a major deviation with respect to the factors set out in subsection (2);<\/p>\n

          (c) <\/em>the bid of any supplier or contractor who does not accept the correction of a minor deviation in that bid; (Covered under sec 56 . we were never approached about correction of minor deviations \u2013 which often are arithmetic errors)<\/em><\/p>\n

          (d) <\/em>a bid which is not accompanied by the bid security required by section 47(1). (none was required)<\/em><\/p>\n

          (2) The following shall be considered as major deviations in a bid –<\/p>\n

          .\u00a0\u00a0\u00a0\u00a0 (a) \u00a0<\/em>with respect to the clauses in an offer -\u2028(i) <\/em>unacceptable sub-contracting, alternative \u2028design and price adjustment, and \u2028(ii) <\/em>where time is of essence, unacceptable time line; ( we offered no subcontracting, no alternative designs and the time of all three lower bidders was 13 weeks)<\/em><\/p>\n

          .\u00a0\u00a0\u00a0\u00a0\u00a0 (b) \u00a0<\/em>with respect to the status of the bidder, a bidder who is ineligible, uninvited or not pre-qualified; ( as bidders on the first public invitation we were found qualified enough to be invited again)<\/p>\n

          .\u00a0\u00a0\u00a0\u00a0\u00a0 (c) \u00a0<\/em>with respect to bid documents, an unsigned bid; and (the record indicates that our bid was signed)<\/p>\n

          .\u00a0\u00a0\u00a0\u00a0\u00a0 (d) \u00a0<\/em>with respect to time, date and location for submission of bids – \u2028(i) <\/em>a bid received after the date and time for submission of bids as stipulated in the bidding documents, and \u2028(ii) <\/em>a bid submitted at the wrong location. (Our bid was received at the right location, on-time and opened at the tender opening session)<\/em><\/p>\n

          The sections 57 and 59 of the Act referred to above are the normal internationally accepted requirements for best practice of bid evaluation and award. We expected, albeit naively, that the Technical Services Division would have functioned as any professional entity, at the level of world class consulting firms.\u00a0 It would be very sad indeed if we were wrong in our reasonable assumption, given the knowledge and experience of the head and senior officers of the Technical Services Division of the Ministry of Public Works and Public Utilities.<\/p>\n

          If therefore, the GOCD rejected the tenders of the two lowest tenders without following the requirement of the Act which is on the brink of its automatic coming to force by law, then it is reasonable to conclude that it is rather apparent that the GOCD did not willingly lead the passing of the PPCA Act; it was and still is not the nature of this administration to pass such a forward looking Act by which it enshrined internationally best public procurement practice into law.<\/em><\/strong><\/p>\n

          If this was an isolated case, then probably the GOCD could be given the benefit of the doubt.\u00a0 However, nineteen (19) months after the passage of the Act and its assent by the President, current public procurement practice in Dominica is, rather than being progressively aligned with the spirit of the Act, is increasingly opposite to good and transparent public procurement practices in that there are blatant practices which are clearly contrary to the intent and purposes of the Act.<\/p>\n

          Reference is made to a press release by the Office of the Prime Minister – Wednesday, August 20th, 2014 and reported by Dominica News Online which states, \u201cPrime Minister and Minister for Finance, Roosevelt Skerrit has approved five contracts for infrastructural works across Dominica, \u2026. [totalling EC$] $4,058,770.48 and will cover work in Delices, Morne Bruce, Pointe Michel and Portsmouth.\u201d<\/em>\u00a0 The article went on to numerate some of these contracts awarded by the Ministry of Public Works and Public Utilities.\u00a0\u00a0 We also refer to works undertaken at Tibay Portsmouth, Road rehabilitation works in Grandbay, Works on the General Post Office in Roseau, Pond Casse – permanent structure at a site in Williams, Pont Casse, where two national footballers lost their lives last year, Rehabilitation works on the Penville to Vieille Case, the apartment building at Silver Lake, among many others.<\/p>\n

            \n
          1. A common thread with all these works is that these procurement events were not advertised and that the tender process, if existed, were limited to a few persons some of which were repeatedly invited to tender in preference and at the expense of other capable operators throughout the island.<\/li>\n
          2. The Act which is waiting to come into force by instrument of the Minister of Finance requires that:<\/li>\n<\/ol>\n

            The Procurement Entity affords all capable Contractors equal opportunity to bid for the works.<\/p>\n

            Reference is made to Section 33 (1-4) of the Act.<\/p>\n

            We challenged the GOCD to prove that the open competitive bidding would not have been efficient and practical for the procurements in question; that there have been sufficient grounds not to utilise the open competitive procurement procedure.<\/p>\n

            It is very reasonable to believe that the many restrictive procurement procedures undertaken over the last 5-10 year have been aimed at denying an opportunity for participation of certain contractors, or limiting participation to only a chosen few, both of which affects the ability of the Minister of Finance to ensure that the best value is obtained for the procurement dollar (Sec 3, h of the Act).<\/p>\n

            But just probably, financial prudence and efficiency is not the mandate or skill of the Minister, or rather it may not be his nature to save the taxpayer any burden.<\/p>\n

            By simply arithmetic one can conclude that just on the projects mentioned in the 20th August press release, the GOCD could probably have spared the taxpayer at least EC$1M in taxes.\u00a0 The only way to disprove this is to cancel the awards and institute the appropriate best practice public procurement practices for these purchasing events.\u00a0 The GOCD is challenged to prove otherwise.<\/p>\n

            Given all this, it is concluded therefore that the GOCD passed Public Procurement and Contract Administration Act because it was forced to do it against its nature, not because it saw this as the right, progressive\u00a0 and appropriate way to go.<\/p>\n

            It is appropriate to end by repeating the words of Stewart Paris:<\/p>\n

            \u201cIf the procurement bill is enforced, there will be less reason to ask about corruption!\u201d.\u00a0<\/em><\/p>\n

            Anthony E. Le Blanc.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"Part 2 – Questionable Procurement Practices and Contract Awards. 1. 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