Two firms are embroiled in a tussle over the supply of oxygen to Kenyatta National Hospital, largely for management of Covid-19 patients.
BOC Kenya Ltd has opposed the award of part of the tender to Noble Gases International Ltd and sought cancellation of the tender award.
The contractor, who has been supplying medical gases to the facility over the years, asked the Public Procurement Administrative Review Board to annul the award.
BOC Kenya moved to the board on grounds that KNH unjustifiably awarded some parts of its usual supplies to Noble Gases arguing that its bid was successful for all items tendered.
The hospital sought suppliers for medical gases of which four firms applied, namely Oxyplus International Company Ltd, BOC Kenya, Noble Gases and Cavash Supplies.
KNH evaluated the tenders through three stages and found that BOC Kenya and Noble Gases’ tender were found to be the lowest evaluated for the supplies.
In this regard, Noble Gases was awarded a tender to supply 10 items in respect of the tender while BOC Kenya got two.
KNH also notified Oxyplus and Cavesh Supplies the reasons why their respective tenders were non-responsive and their intention to award the two successful bidders.
The board chaired by Faith Waigwa said the second bidder, Noble Gases, did not file any submissions regarding the request for review by BOC Kenya.
“The interested party did not file any response in support of, or in opposition to, the request for review at the time of writing this decision,” the PPRAB said.
The PPARB has since set aside the letter of notification of intention to award the tender that was issued to the petitioner and Noble Gases.
“The procuring entity’s letters of notification to award the tender for the supply and delivery of medical gases dated June 11, 2021 issued to all unsuccessful tenderers be and are hereby cancelled and set aside,” the board resolved.
It directed KNH to issue fresh letters of notification to the contract in line with the recommendation of the evaluation committee that dealt with the tender.
The board said the notifications be sent simultaneously while notifying the unsuccessful tenderers of the outcome of the evaluation of their tenders.
“Noting that the subject tender is for medical gases that are quite a needed commodity during these Covid-19 times, the board deems it fit to uphold the recommendation of the evaluation committee,” the ruling reads.
“However to align the entire process with the law, it is important that KNH issues fresh letters of intention to enter into a contract as recommended by the evaluation committee.”
BOC had contended that KNH breached the procurement law by failing to notify the successful tenderers of the outcome at the same time as the unsuccessful ones.
It cited failure by the hospital to indicate the reasons for which its tender was non-responsive in respect of the items whose tender was handed to Noble Gases International.
BOC Kenya currently supplies KNH with medical gases on a request for quotation basis but was notified it was only to supply two items, which birthed its protest.
“The board observes that the procuring entity did not offer reasons to the applicant on why it was unsuccessful in respect of the (said) items,” the PPARB ruling reads.
PPRAB said the letter by KNH to BOC Kenya did not satisfy the threshold of the Public Procurement and Asset Disposal Act.
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