More than six months after a complaint was lodged by APNU+AFC MP David Patterson about a pump station contract award to Tepui Inc, the procurement commission found major breaches in the evaluation process but said it can do nothing about it as a contract has already been concluded.
The Public Procurement Commission (PPC) yesterday issued a summary of findings since Patterson was not an aggrieved party and only entitled to recommendations on the way forward.
The PPC said “…on the entry into a contract, privity of contract issues arise. There is nothing within the statutory framework which permits the commission to revoke, rescind, recall and or in any way alter, suspend or stop the contract once entered”.
The PPC’s findings released yesterday will call into question its effectiveness in addressing contract irregularities particularly where a bidder does not lodge a complaint within the prescribed period. Bidders are loathe to do this for fear of being excluded from future consideration of projects.
The award of the $865m Belle Vue Pump Station to Tepui Inc had raised questions from the outset as its key principal Mikhail Rodrigues was not involved in construction but was known to be a confidant of Vice-President Bharrat Jagdeo and with ready access to government.
In its 35-page summary, the PPC elicited answers from the National Procurement and Tender Administration Board (NPTAB) – whose evaluation committee made the choice of Tepui – and the procuring agency, the National Drainage and Irrigation Authority (NDIA). Not only were both tardy in answering the PPC, they only provided some of the documents requested.
Tepui was required to have had the experience of having completed one project of a similar nature within the past five years. Similar projects “shall include pump stations, sluices and drainage structures”. Having been incorporated less than a year before, Tepui did not have these qualifications, yet the evaluation committee of the NPTAB found its bid to be responsive.
When the PPC asked the NPTAB and the NDIA to justify their decision, they cited what they described as similar-type of works which Tepui had done for other clients. They also admitted that two other tenderers for pump stations were similarly not qualified but that “lenience” was showed.
The summary of findings said that the record before the PPC reflects that Tepui submitted two contracts under this criterion heading, to wit:
i. a contract between it and Hadi’s World Inc. dated March 27th, 2023, for the construction of a concrete wharf at Providence, and ii. a contract between it and the Central Housing and Planning Authority dated February 24th, 2023, for the upgrading of roads in Block 3, Great Diamond.
The summary of findings said that Tepui itself submitted as part of its tender, a letter addressed to the NDIA and dated June 13th, 2023, under the hand of “Winston Martindale, Director” captioned “Record of Past Work Experience” in which it is stated – “Our company was registered in August 2022 and has now commenced the process of bidding for projects, hence we do not have any past work experience but our team of personnel have years of experience under upgrading and rehabilitation of roads as indicated on their respective resumes.”
The NPTAB said in part that the “construction of a pump station and a pile bed foundation involve multifaceted tasks and material supplies to create robust infrastructure. Commonalities lie in foundational aspects, with earthworks for the pump station and pre-stressed concrete piles for the wharf providing stability. Structural works are vital in both projects, encompassing the construction of pile caps and beams for the pump station and various structural elements like deck slabs and U-beams for the wharf. Additionally, revetment works are necessary for both to prevent erosion and ensure long-term stability. Both projects require meticulous attention to detail in supplying and installing essential components such as steel frameworks and pumps. Furthermore, aspects like road access, internal landscaping, and electrical works contribute to the functionality and aesthetics of both structures”.
Additionally, NPTAB said it acted on precedence and discretion to evaluation criterion No. 8, please see examples below.
1. 2747/2018/21-National Drainage & Irrigation Authority- Construction of Pump Station at Devonshire Castle, Essequibo, Region No. 2 awarded to Samaroo Investments without any pump station construction experience.
2. 2748/2018/21- National Drainage & Irrigation Authority- Construction of Pump Station at Den Amstel, Region No. 3 awarded to JR Ranch Inc. J/V GSK Excavation Services Joint Venture without any pump station construction experience….”
Tepui also did not provide a bank line of credit. It provided a line of credit issued by Puran Bros. Later a letter of credit issued by Caricom General Insurance Company also appeared but this also was ineligible.
Tepui did not submit – as required – an audited financial statement as it was not in existence for a year.
In terms of equipment requirements, Tepui, the summary of findings said, did not show evidence of three pieces of equipment.
It also fell short of its bid security requirement.
The PPC made a series of proposals for changes to legislation and then submitted its findings to the NPTAB and the NDIA for commentary after which it released the document yesterday.
Tepui will continue its contract. The PPC however advised that since the contract has been entered into that the NDIA strictly monitor for performance and if Tepui is found in breach that the necessary steps including termination be taken if considered prudent. The PPC also called on procuring agencies to be more responsive to requests for information.
As part of its investigation, the PPC also visited the Belle Vue, West Bank Demerara site where works are under way by Tepui.
