Tribunal confirms CBK award of cleaning contract to Eldoret-based company

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Tribunal confirms CBK award of cleaning contract to Eldoret-based company


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Central Bank of Kenya. PHOTO PHOTO | NMG

Summary

  • It was awarded the tender in March this year after being the lowest bidder among the 24 companies applying for the contract.
  • The price triggered a reaction from one of the losers, Peesam Ltd, which sought a notification on the grounds that the price quoted by the winning bidder was abnormally low.

A procurement court has upheld the decision of the Central Bank of Kenya (CBK) to award a cleaning and gardening contract to a company that allegedly quoted “an abnormally low price that could not meet the minimum wage for all staff required for the job”.

The company, Kamtix Cleaners Co.Ltd, was awarded a two-year contract for the provision of cleaning and related services at the CBK Eldoret branch after quoting a price of Sh2.9 million.

It was awarded the tender in March this year after being the lowest bidder among the 24 companies applying for the contract.

The company is the current provider of cleaning services in the branch.

But the price triggered a reaction from one of the losers, Peesam Ltd, who sought a review on the grounds that the price the winning bidder had stated was abnormally low.

Peesam had said in its bid that it would make the job at a cost of Sh4.4 million. It claimed that the amount claimed by the winning tenderer was too low and could not meet the minimum wage of workers within the two years, according to government guidelines.

According to the tender documents, the staff responsible for the task includes two supervisory staff, a professional staff (management) and two soil maintenance staff (cleaning staff).

Other bid losers such as One Way Cleaning Services Ltd had listed a price of Sh8.4 million, Jubilant Cleaning Services (Sh7.9 million), Robu Cleaning Services (Sh6.7 million), Nadiah Investments Ltd (Sh6.6 million), Glacier East Africa Ltd (Sh6.5 million) and Jepco Services & Renovators Ltd (Sh5.6 million).

Peesam Ltd informed the Administrative Audit Committee for Public Procurement (PARB) that the winning tender was in breach of the evaluation criteria insofar as it meets the minimum wage requirements for the workers required to perform the professional tasks.

However, CBK stated that when awarding the offer, it had ascertained that Kamtix Cleaners Ltd’s offer was not an abnormally low offer which would give rise to concern about its ability to execute the resulting contract.

It said bidders should provide evidence proving compliance with minimum wages in accordance with government wage pay guidelines.

Both Peesam and Kamtix provided the evidence, and CBK confirmed that Kamtix had fully complied with the minimum wage requirements.

PPARB noted that Kamtix submitted nine payslips covering a period of more than two months from November 2021 to January 2022 with staff salaries of between Sh15,500 and Sh22,500.

CBK said the allegations raised by Peesam were far-fetched and untrue.

In its ruling, the board stated that it is the contracting authority’s responsibility to identify a potentially low tender and not the tenderer.

“Based on the provisions of section 80 (1) and (2) of the Public Procurement and Disposal of Assets Act, it is our interpretation that the responsibility for assessing tenders rests with an assessment committee from a contracting authority appointed by the accounting officer,” the board said. , while rejecting the request for revision.

It stated that the CBK law or the clauses in the tender dossier.

The contracted company is expected to provide high-standard cleaning and gardening and waste management services using environmentally friendly cleaning products and supplies.

The interior of the branch includes office space, conference facilities, meeting rooms, a car park, a staff clinic and common areas, as well as lifts.

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