Bidders protest $7.5M generator contract award

Jun 25, 2016 News

The award of a contract earlier this year for the supply of a generator for state-owned hinterland Power Company is raising questions.

A number of bidders for the tenders, which were handled by the Hinterland Electrification Company Inc., are complaining that the company winning the tender, “Cummings Electrical Company Limited”, had a bid higher than above most of them.
The Hinterland Electrification Company Inc. falls under the Ministry of Public Infrastructure.
There were no explanations how Cummings Electrical won it.
According to official records, as published on the state’s http://electricity.gov.gy/, there were 16 bidders for the supply of a 175kW generator for Matthew’s Ridge Power and Light Inc.
The tenders were opened on March 8, 2016 with bid amounts ranging from $5.54M to $13.9M.
Cummings’ bid was for $7,576,172. There were nine bidders that came in below that figure.
According to the complaining bidders, it is now becoming even clearer that the country needs the Public Procurement Commission in place.
“This body could hear our complaints and deal with it. We are hoping this commission comes into place very soon,” said an executive of one of the companies.
Last week, Minister of State, Joseph Harmon announced that Cabinet has green-lighted the establishment of a Bid Protest Committee to hear complaints from businesses which feel that they have been unfairly overlooked for another bidder.
There have been growing complaints of significant corruption in the country’s procurement system.