BK peeved over PPC’s stance on review of $3.5B contract

BK International is up in arms over Government’s decision to continue with the $3.5B contract awarded to Nabi Construction and Trinidad’s Kee Chanona Limited through a joint venture, despite its protest. But the Public Procurement Commission (PPC) is maintaining that an administrative review cannot be conducted after the contract has been signed.

In a press statement on Friday, BK International Inc’s Attorney, Carmilita Jamieson expressed disappointment. “BK Inc. does not subscribe to the fact that PPC is not empowered to authorise the rescinding of a contract if it is in breach of the law. How else will one get justice if there is no remedy by a constitutional agency set up under the Constitution to ‘investigate complaints’ and ‘provide remedial actions?” Jamieson argued.

But Mrs Corbin on Saturday maintained that the Procurement Act does not allow for Administrative Review to be conducted after the contract has been signed. According to Section 52, Chapter 7 of the Procurement Act, “A bidder whose tender or proposal has been rejected may submit a written protest to the procuring entity.

The protest may pertain to the pre-qualification or tendering proceedings or to the method of the procurement selected by the procuring entity.” The Law also stipulates that the protest must be submitted within five business days following the publication of the contract award decision. But BK is contending that it was not given sufficient time to protest the issue.

“BK Inc. was not given an opportunity to seek an Administrative Review,” the attorney stated, adding that it was on that basis that the decision was taken to turn to the PPC. In response to the other concerns raised by BK, Corbin stated that the investigation being conducted by the PPC in relation to the complaint filed by BK is still in its early stages. She, however, noted that the commission does not have the power to issue sanctions or the power to revoke contracts. However, based on the findings of its investigations, it refer matters to the DPP if needs be or make recommendations to the governing bodies.

BK was among five companies that bid for the contract to “complete the Mazaruni Prisons in Region Seven. The company is arguing that the engineer’s estimate of $2.8M which was published in the Guyana Chronicle changed overnight without any explanation.

“Notably, while the law does not provide for the engineer’s estimate to be stated publicly, the fact that it was stated means that it cannot be arbitrarily changed without the bidders benefiting from an explanation and being given an opportunity to bid on the new engineer’s estimate. In this case, the engineer’s new estimate came out only when the bid was (opened) on November 21, 2017. If this is not a flagrant breach, we asked, what is?”, BK attorney argued.

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