Sh 350 million tender dispute rocks IEBC

[Company Disclaimer: This article has been lifted from the standardmedia.co.ke website to appear only on the Presidential debates website]

A proposed award of a Sh350 million tender for elections communication consultancy is the latest dispute to rock Independent Electoral and Boundaries Commission (IEBC).
The IEBC will now have to defend itself on how it has handled the process, after one of the bidders sought the attention of the Public Procurement Administrative Review Board (PPARB).
On Friday, June 2nd Transcend Media Group (TMG) applied for review of the procurement of strategic communication and integrated media campaign consultancy services citing major flows in the process.
TMG accuses IEBC of attempting to rig the process in favour of its rival Scanad Kenya Limited in spite of it emerging the lowest bidder in financials. The matter is scheduled for hearing this Wednesday afternoon by the Paul Gicheru led PPARB.
In documents filed at the board, IEBC called both TMG and Scanad to negotiate for the deal after the two firms were scored 86 per cent after evaluation of their bids.
In spite Scanad quoting over Sh287 million that the price quoted by TMG, the IEBC is being accused of irregularly inviting the two firms to negotiate their financials to ostensibly aid Scanad clinch the lucrative deal.
Six firms had participated in the tender that closed on the 18th April and taken through the first stage that considered capacity and specific experience on the job.
Those evaluated and qualified from this stage included Scanad, TMG, Media Edge Interactive, Professional Marketing Services ltd, Triple Edge Media and Oglivy Africa ltd. Triple Edge failed in the first stage.
In the second stage, only TMG and Scanad qualified having obtained 82.4 and 92.32 percent respectively to enter the third stage of financials.
In the financial proposals, Scanad quoted Sh764, 393,224.00 while TMG had Sh477, 385, 312.00, making a difference of Sh287, 007,912.
Following this, the evaluation team subjected the two to another evaluation by combining technical and financial scores to introduce a new term of technical weighted scores.
Scanad was given 73.86 for weighted technical score and 12.9 for weighted financial while TMG had 69.92 for weighted technical score and 20.0 for weighted financial score leading to both tying at 86 percent.
It's at this stage, that then Director of Procurement Lawy Aura invited representatives of the two to negotiate. TMG reduce their cost by about Sh54 million to Sh423, 525,836.00 while Scanad cut its price by more than half to Sh350, 003,746.
"You may therefore review the evaluation and negotiation report together with this opinion and consider award of tender No. IEBC/45/2016-17 for the provision of strategic communication and integrated media campaign consultancy services to be considered for award to M/s Scanad Kenya Ltd at a negotiated total of Sh350, 003,746 inclusive VAT," Aura's report reads in part.
On receiving the report recommending the award to Scanad, Chief Electoral Officer Ezra Chiloba forwarded it to the commission chair Wafula Chebukati to 'to be advised on the next step.'
The commission then held plenary meeting and declined to approve the award and instead referred to the legal department to provide a legal opinion.
TMG had written to the commission on 12th May and attached registration documents that show that Scanad was majorly owned by foreigners.
"We have established that M/S Scanad Kenya is majority foreign owned firm. We therefore draw your attention to clause.2.8.4 of the RFP, which specifically provides for preferential treatment of locally owned firms, TMG chief executive Lai Muthoka wrote to IEBC and copied Director General Public Procurement Oversight Authority Maurice Juma.
In the CR12, Bharat Thakrar, a Kenyan national is listed as holding one share out of the 250,000 while WPP Scangroup Limited holds 249,999 shares.