12 March 2014

Kenya: Sh24.6 Billion Laptops Tender Cancelled

Nairobi — The award of the Sh24.6 billion laptop tender to Olive Telecommunications has been cancelled by the Public Procurement Administrative Review Board.

Making the ruling on Tuesday, the board’s chairperson Josephine Monga’re said Olive Telecommunications did not only lack the financial capability to implement the project, but also quoted Sh1.4billion higher than the required threshold.

The board says the company should have quoted Sh23.2 billion instead of Sh24.6 billion adding that the excess amount included by the company was to be used for some services which were supposed to be offered free.

“Considering and taking into account all the circumstances of this case and the public interest involved in the matter, the award of tender for the supply, delivery, installation and commissioning ICT integration in devices and solutions for primary schools in Kenya Lot 1, to Olive Telecommunications PVT be and is hereby annulled,” Monga’re said during the ruling.

On financial capability, the board noted that Olive Telecommunications did not meet the annual turnover of Sh8 billion for the last three years from the time of awarding of the tender.

In the year 2010, 2011 and 2012, the company’s annual audited results were Sh6.9million, Sh14.2 million and Sh767million respectively which was way below the requirement for the Lot 1 of the laptop project.

“The bid therefore ought to have failed to pass the preliminary evaluation stage.”

The board said Olive did not meet requirements of an Original Equipment Manufacturer (OEM), which was against the tender awarding requirements.

The process will now be reviewed within 45 days from the Best and Final Offer involving Haier Electrical Appliances Corporation Limited of China and HP.

“The procuring entity is directed to proceed with the tender process from the point of the opening of the Best and Final Offers and thereafter conduct the due diligence in accordance with the criteria under clauses 34.2, 34.3 and 34.4 of the tender document,” the chair ordered.

The ruling comes after Haier Electrical Appliances Corporation Limited of China and HP filed an application on February 14 and 13 respectively to block the award tender by the Education Cabinet Secretary Jacob Kaimenyi on February 7.

The first batch of 400,000 laptops to various schools was expected by the end of March this year. in

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