Contractors fight over 19b road deal

Apr 22, 2010

TWO companies Spencon and Dott Services are locked in a wrangle over the award of a sh17b deal for the construction of bridges, culverts and ferry landing sites on the Atiak-Moyo-Afogi road in northern Uganda.

By Henry Mukasa

TWO companies Spencon and Dott Services are locked in a wrangle over the award of a sh17b deal for the construction of bridges, culverts and ferry landing sites on the Atiak-Moyo-Afogi road in northern Uganda.

The contract was first awarded to Dott on January 28 after Spencon was disqualified for allegedly having no proof of a ‘credit line’ to finance the contract.

However, a review of the award concluded that Spencon, the lowest bidder, was wrongly disqualified.
The national procurement regulator had warned the roads authority of dire consequences if regulations are flouted in the tendering process.

Eng. Peter Ssebanakitta, the executive director of the Uganda National Roads Authority (UNRA), in a March 1 letter overturned a decision by the contracts committee to award the tender to Dott Services, as the ‘best evaluated bidder’.

“The decision to award the contract for construction of bridges, box culverts and ferry landing sites along the Atiak-Moyo-Afogi road to Dott Services is set aside and substituted with an award to Spencon Services, whom this review finds emerged the best evaluated bidder,” Ssebanakitta wrote.
The letter was addressed to the Spencon Services Regional Manager, A. Reddy.

The bidding documents also demanded that the bidder must demonstrate access to or availability of liquid assets, unencumbered real assets and lines of credit for a cash flow of three months, estimated at sh3.5b.

Spencon pleaded for an administrative review which Ssebanakitta granted. In his letter cancelling Dott Service’s offer. Ssebanakitta argued that the grounds for disqualification of Spencon were unjustified.

He explained that Dott Services’ bid was over sh2b higher than Spencon’s, making Spencon the lowest bidder.

“The first letter from Bank of Baroda had evidence of satisfactory line of credit,” Ssebanakitta stated. “My decision is that the application for an administrative review is upheld.

“The UNRA procurement and disposal unit should take the necessary steps to issue a new evaluated bidder notice,” Ssebanakitta directed.

However, the Public Procurement and Disposal of Public Assets Authority (PPDA) board, in its March 29, meeting quashed the UNRA boss’s decision and warned him of penalty should regulations and procedures be flouted.

Cornelia K. Sabiiti, who wrote on behalf of the procurement body executive director, told Ssebanakitta that the board had decided to halt its earlier directive, that a new ‘best evaluated bidder notice’ be issued.

“The authority will not be responsible for failure to adhere to this advice,” Sabiiti wrote in a March 29 letter.

In another letter of April 7, PPDA wrote to Ssebanakitta that the authority had received an application for ‘administrative review’ from Dott Services, citing irregularities in the tender award.

“The accounting officer is responsible for investigating complaints of providers. You are advised to investigate and address the provider’s complaint in accordance with the PPDA regulations,” Sabiiti wrote.

“In the meantime, you are required to halt the procurement process,” PPDA directed and demanded that a report of the review be ready within 15 days.

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