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Purch-lympics Entry #5
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Jehu Selman Mamven
Procurement Consultant, Abuja, Nigeria
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"Two suppliers bided for the supply of generators. The suppliers are required to provide Manufacturers Authorization and to either fill price schedule forms for goods to be supplied from within the country of the purchaser or for goods to be imported. All taxes and custom duties are to be deducted before comparison of responsive bids. Supplier 'A' quoted for goods to be imported inclusive of 10% Custom's duty with Manufacturers Authorization from abroad, but filled the form for goods to be supplied from within the purchaser's country. Supplier 'B' quoted for goods to be supplied from within the purchasers' country inclusive of 10% Withholding taxes (WHT) with Manufacturers Authorization from within the country of the purchaser, but filled the form for goods to be imported. These are the only two suppliers out of seven who are substantially responsive to the requirement of the bid document.
Action
Since time was of essence in this procurement, it was not advisable to reject all the bids. The supplier's mistakes in filling the wrong forms were both pardoned.
After deduction of taxes from 'B' and custom duties from 'A', Supplier A emerged as the lowest responsive bidder and was awarded the contract. Supplier 'B' petitioned on the following basis:
- That the Manufacturers Authorization was from the representative of the manufacturer who had a written authority from the manufacturer to act on his behalf - though the written authority was not attached to the document, it could have been verified in the spirit of fairness.
- His price schedule form completed was for goods to be imported.
- In effect, if custom duty is deducted from his price it would be the lowest responsive bid.
The decision was finally reached that, evaluation is based on the bidder's submission alone and since the bid did not supply the information concerning the relationship between the manufacturer and his representative or the amount of the custom duties, it was impossible to come to such conclusions. Judgment was ruled in favor of supplier A. "
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