State car lease contracts delayed on repeat bid price checks
The government leases vehicles from various car companies.
Contracts for the seventh phase of the multi-year car lease programme by the State have been delayed after the public tenders’ watchdog ordered a repeat evaluation of the financial bids by all the eight auto dealers interested in the deals.
The Public Procurement Administrative Review Board(PPARB) in a July 4 decision said that the tender committee of the National Treasury used an erroneous formula to evaluate the financial bids of the tender and nullified the letters of notification of intention to award the successful bidders.
The decision follows an application by Simba Corporation Limited which challenged the award of contracts arguing that the procuring entity introduced fresh reasons that had affected its overall technical score and which made its bid unsuccessful in Lot 2B and 4B of the tender.
“For the avoidance of doubt, such re-evaluation shall be based on the documents already submitted by the parties and not any new documents,” the board ruled.
Eight companies submitted their tenders including Simba Corporation, TransAfrica Motor Ltd, Urysia Ltd, CFAO Motors Kenya, Mobius Motors Kenya, ECTA Kenya Ltd, Isuzu East Africa, and DT Dobie & Co (K) Ltd.
The board directed the Treasury to direct the evaluation committee to admit Simba Corp’s tender at the financial evaluation stage together with all other tenders that made it to the stage and conduct a re-evaluation.
“We, therefore, find it just and fair to nullify the letters of notification of the intention to award dated May 24, 2023, issued to all unsuccessful tenderers in the various lots of the subject tender and set aside the award,” the board said.
All eight tenders were determined as responsive and moved to the technical evaluation stage. In the end, seven tenders were found responsive under various lots.
Simba Corporation, however, sought the review arguing that Isuzu EA was recommended to supply Lot 2b, which should have been awarded to it.
Evidence presented before the board showed that Simba Corporation was recommended to supply lots 2b, 4b,7,8,9,10,11a, and 11b.
The firm claimed that the ministry used a wrong formula contrary to provisions of section 82 of the Procurement Act, which prevents amending of tenders after they have been opened.
The board heard that there was no explanation as to why Simba Corporation was awarded Lot 2b, which had 30 vehicles compared to Lot 2 b which had 106 vehicles.
The Treasury advertised the tender for motor vehicle leasing programme Phase VII, on February 21, 2023.
In the programme, government ministries, departments, and agencies (MDAs) request the exchequer to lease vehicles on their behalf for use for their transport needs. Motor dealers earn a commission on sales, but official statistics indicate that the motor vehicle industry is facing reduced sales.
The multi-year state vehicle leasing programme is in its seventh phase in which the State requires 1,652 vehicles. The search for new vehicle lessors follows the expiry of the lease on some 1,408 vehicles leased during the fourth phase in May last year.
The National Treasury had leased 1,408 vehicles for use by the national government administration, the National Police Service (NPS), Nairobi Metropolitan Services (NMS) and Kenya Prisons Service for four years. The State has leased 6,800 vehicles since the inception of the multi-billion-shilling leasing programme in 2013.
