The Guyana Defence Force (GDF) breached the Procurement Act twice last year by single-sourcing the Bell 412 EPI helicopter and signing the contract before approval was granted by the National Procurement and Tender Administration Board (NPTAB), according to the Auditor General’s report.
The report of the Auditor General on the public accounts of Guyana which was laid in the National Assembly on Monday revealed that the NPTAB awarded a contract for US$9.5 million for the procurement of one Bell 412 EPI helicopter on December 14, 2020.
Additionally, US$500,000 was awarded as miscellaneous fees to cover the cost of fuel, ferrying pilots, landing and navigation charges, airfare for GDF Pilots and Engineers, personnel allowances, customs fees and aircraft insurance.
The Procurement Act of 2003 mandates public tendering for all government agencies but there are no provisions for emergency public procurement. As a mechanism for emergency tendering, entities are allowed to sole-source based on a satisfactory history of the supplier.
In the case of the helicopter, the Auditor General failed to identify whether it was classified as emergency procurement and if the contract should have gone to public tendering.
The GDF was allocated $200M for the purchase of tractors, ambulances, boats, outboard engines, and drones in the 2020 budget. It received an additional $2.180 billion supplementary allocation which catered for the procurement of the helicopter and additional fees incurred.
The AG further found that the contract, for the procurement of the Bell 412 EPI aircraft, was signed on December 4, 2020, between Bell Helicopters and GDF.
“…that is, ten days before approval was granted by the NPTAB, which is a breach of Section 42 of the Procurement Act,” the report stated.
Section 42 of the Procurement Act speaks to the issuance of notice of awards and signing of contracts. It mandates the Tender Board to give notice of an award within 14 days to the contractor and the signing of contracts only after an award is made and notice is given.
Section 42 subsection 2(b) states “…Between the time when the notice referred to in subsection (1) is dispatched to the supplier or contractor and the entry into force of the contract, neither the procuring entity nor the supplier or contractor shall take any action that interferes with the entry into force of the contract or with its performance.”
The GDF, in response to the AG’s findings, noted the concerns and pledged to avoid such recurrences. The AG advised the Defence Force to refrain from awarding contracts before receiving approval from Tender Boards.
The Bell 412 EPI which was acquired new and has a seating capacity of 13 persons, was received by the GDF on March 15, 2021.
At the time of the helicopter’s arrival, Chief of Staff Godfrey Bess said it was significant since Guyana was facing increasing and deliberate acts of aggression from Venezuela. He noted that it would allow the Force to conduct long-range aerial reconnaissance and other missions.
“It is an important moment which will result in enhanced delivery of service to the nation, particularly as it relates to aviation security… In terms of [the] nation’s security, this is a significant tool to enhance the effectiveness of security and Joint Services operation. It will also allow us to have a substantial presence in assisting with the surveillance security of our offshore operations and our fisheries zones and also our vast remote land space. This aircraft is a national asset,” Bess had said.
President Irfaan Ali, the Commander-in-Chief of the Armed Forces had said that his vision is the transformation of the country’s defence and security architecture.
The Bell 412 EPI is termed a dual-use helicopter. It is a platform that has been designed by Bell Helicopters USA in compliance with regulatory standards that can satisfy both civilian and military use with only minimal adjustment. It is described as “the daily workhorse that reliably performs in some of the most extreme climates around the world every day.”
