Tension is brewing between the Ministry of Works and Infrastructure and the National Insurance Property Development Company (Nipdec) regarding the award of multi-million dollar contracts. The company, which functions as project manager for the ministry, is requesting the insertion of a new column in the Tender Evaluation Report justifying reasons for recommending certain contractors for jobs. However, the request has been ignored by line minister Jack Warner who has threatened to pull the plug on Nipdec for failing to understand its role and function. The Minister has warned the company against making unreasonable demands in an attempt to have its way.
Sunday Guardian learnt the request is linked to the award of the Arouca River bridge and the Tarouba Link Road contracts to the tune of approximately $96 million dollars. Both contracts have been awarded to Lutchmeesingh's Transport Contractors Ltd. The company submitted the highest bid-$34,715,440.54 in relation to the Arouca River Bridge-but according to the Tender Evaluation Report obtained by Sunday Guardian, it was still able to beat out five other contractors: Super Industrial Services; ASTA Engineering; Seereeram Brothers; General Earthmovers and Trinidad Contractors Ltd. While the company submitted the highest bid compared to other contractors, its bid was the nearest to the worth of the contract put at $34,601,590.54, VAT inclusive.
Companies were evaluated according to the following categories-general experience and similar experience relevant to assignment; technical capability of proposed firm; organisational structure and manpower loading chart; programme of execution and proposed methodology; financial capability (based on recent 2008-2010) audited financial statements and rate structure. According to the Tender Evaluation Report, technical proposals were evaluated first and then a further price evaluation was carried out on all tenders that successfully achieved the minimum score in each category as well as an overall score of 70 per cent.
The company with the highest aggregate score in each category from the technical and price evaluation was recommended for the award of the contract. Further perusal of the report revealed while Lutchmeesingh's Transport Contractors Ltd placed third with regard to the summary of price proposals, the company earned top points in the technical evaluation category. Lutchmeesingh's Transport Contractors Ltd received a score of 94.0 in the technical evaluation category and 91.8 in the price proposal category, ranking the company in the top spot with a total aggregate score of 93.3 points. With regard to Tarouba Link Road valued at $61,668,510.16, the company also beat out all other contractors in the technical support category after several contractors were given a failed score.
Couva Chamber queries selection process
It was upon the award of the contracts that the T&T Contractors Association and Couva/Point Lisas Chamber of Commerce wrote Nipdec's chairman Ronald Ramcharan querying the criteria and selection process regarding the award of contracts. It was on this basis that the request for the additional column to be included was made by Nipdec. The request, however, is not sitting well with Warner who has warned Nipdec to be mindful of its role and function.
Documents obtained by Sunday Guardian revealed that the company's general manager Wendy Ali, wrote to the ministry's permanent secretary Cheryl Blackman on September 15, noting that the Memorandum of Understanding between Nipdec and the ministry states that only contractors who have prequalified with the company may be selected to perform Road Paving and Road Rehabilitation Works under the PURE Programme.
In the letter Ali stated: "In order to facilitate the approval of Nipdec's Tenders Committee for invitations and awards, the Committee has requested that the recommendations being forwarded by the evaluation committee for the invitation of contractors for road paving and road rehabilitation works include an additional column detailing the reasons which were considered by the evaluation committee for recommending the said contractor."
In a strongly worded letter dated September 16, Warner, who admitted to being stymied by the contents of the letter, rejected the request.Citing grounds for rejecting the request, Warner stated:
•The Ministry is the client in this relationship.
•Nipdec serves as the project manager for the ministry.
•Any changes requested by Nipdec should be forwarded in the form of recommendations.
•The relationship is hierarchical with Nipdec holding the subordinate position.
Warning Nipdec to desist from making such a request, Warner further stated: "It is important that we have a clear understanding of this relationship because if Nipdec refuses to appreciate its role, the Ministry of Works and Infrastructure may have to seek other options which are more conclusive to the successful delivery of its mandate." The Minister added: "In this regard, I wish to inform you that the Ministry of Works and Infrastructure will not adhere to your requests documented in your letter of September 15 and, as such, will not include any extra column as requested."
Warner: It's sheer mischief
Confirming to Sunday Guardian that the request of the new evaluation column is linked to the award of the Arouca River bridge and the Tarouba Link Road, Warner insists that the tendering process was above board. Slamming Nipdec for making such a request, an infuriated Warner declared: "It is not their business!" Describing the move as 'sheer mischief' Warner said: "There is this belief that we are fighting Nipdec in terms of the award of contracts and that the process of evaluation was not up to board, especially as it relates to the Tarouba Link Road and the Arouca River bridge. There are some people who are bent on making mischief but I would not allow them to hamper me from carrying out my function."
The Minister added: "Ministry of Works and Infrastructure is a client to Nipdec. It is because of the mischief they are about, Nipdec is now asking for a column to explain why contracts are awarded. I would repeat, there would be no additional column being implemented."
Phillip: It's a misconception that the lowest bid must be accepted
Also defending the selection process, programme manager of PURE Hayden Phillip said there was a misconception that once a contractor prequalifies, the lowest bid is to be accepted. Phillip said a contractor must be registered on Nipdec's list of contractors to qualify for jobs with PURE. He explained: "If you are not on that list, you do not qualify. Contrary to newspaper reports, the lowest bid is not accepted in all of our tenders.
Based on Nipdec's list we would select contractors that we know have a certain level of work, financial capability, experience and expertise." Recalling the collapse of the Macoya Bridge, Phillip added: "It is incidents like those that we have to avoid. Some contractors think the cheapest bid would win. That is not necessarily the case. We aim to chose the best contractor for the job."
Chin: Other bidders are capable
Contacted yesterday, president of the T&T Contractors Association Mervyn Chin said he was awaiting a response from Nipdec after raising the issue of the evaluation process. "A few of the bidders who tendered for those contracts are members of our association. They found it strange that both contracts were awarded to the highest bidder. I am still awaiting a response seeking to clarify the award of those contracts. "When you look at the other bidders they are all capable of doing the work. We find it unusual it was awarded to the highest bid. We felt there was enough, at face value, to merit our inquiry into the award of the contracts."
Lutchmeesingh: We built the most bridges in T&T
Unaware that his company won the bid also for the Arouca River bridge, managing director of Lutchmeesingh's Transport Contractors Ltd Parry Lutchmeesingh said his company has a reputation of building bridges in T&T. "I do not know if I won the bid. I submitted a bid which included price and technical proposals. I won the bid for Tarouba and it was awarded to me earlier this month."
Justifying the award of any contract to his company, Lutchmeesingh said: "From my information, the award is not based on price alone. The technical proposal also plays a vital role. It is a technical piece of job. There have been instances when contracts were awarded and the entire road bridge collapsed. People did not know what they were doing. You must know what you are doing. Our company has built the most bridges in T&T. We have a very good reputation."