Court upholds CBK’s award of cleaning contract to Eldoret-based company

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Court upholds CBK’s award of cleaning contract to Eldoret-based company


Central Bank of Kenya. FILE PHOTO | NMG

Summary

  • It won the tender in March this year after becoming the lowest bidder among the 24 companies that applied for the contract.
  • The price sparked a reaction from one of the losers, Peesam Ltd, who requested a review on the grounds that the price offered by the successful bidder was abnormally low.

A public procurement tribunal has upheld the decision of the Central Bank of Kenya (CBK) to award a cleaning and gardening contract to a company which allegedly offered “an abnormally low price, which could not reach the minimum wage of any the personnel required for the work”.

The company, Kamtix Cleaners Co.Ltd, has been awarded a two-year contract to provide cleaning and related services to CBK Eldoret branch after offering a price of 2.9 million shillings.

It won the tender in March this year after becoming the lowest bidder among the 24 companies that applied for the contract.

The company is the current provider of branch cleaning services.

But the price sparked a backlash from one of the losers, Peesam Ltd, who requested a review on the grounds that the price offered by the winning bidder was abnormally low.

Peesam had in his bid stated that he would do the work at a cost of 4.4 million shillings. He argued that the sum offered by the successful bidder was too low and could not meet the minimum wage for workers, within two years, according to government guidelines.

According to the tender document, the staff responsible for carrying out this task comprises two supervisory staff, one professional staff (management) and two grounds maintenance staff (cleaning).

Other losers such as One Way Cleaning Services Ltd had quoted a price of 8.4 million shillings, Jubilant Cleaning Services (7.9 million shillings), Robu Cleaning Services (6.7 million shillings), Nadiah Investments Ltd (6.6 million shillings), Glacier East Africa Ltd (6.5 million Sh) and Jepco Services & Renovators Ltd (5.6 million Sh).

Peesam Ltd has notified the Public Procurement Administrative Review Board (PARB) that the successful bid breached the evaluation criteria as it met the minimum wage requirements for the workers required to perform the tasks in question.

But CBK said that in awarding the bid it ensured that Kamtix Cleaners Ltd’s bid was not an abnormally low bid which would raise concerns about its ability to perform the resulting contract.

He said bidders were required to provide evidence proving compliance with minimum wages in accordance with government guidelines on payment of wages.

Peesam and Kamtix presented evidence and CBK confirmed that Kamtix had fully complied with 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 ranging between Sh15,500 and Sh22,500.

CBK said the allegations raised by Peesam were outlandish and untrue.

In its decision, the tribunal said that it is up to the procuring entity to identify a potentially low bid and not the bidder.

“Based on the provisions of Section 80 (1) and (2) of the Public Procurement and Asset Disposal Act, we interpret that the responsibility for evaluating bids rests with a bid evaluation committee. ‘a procuring entity appointed by the accountant’, the Commission said while rejecting the request for review.

He said that CBK the law or the clauses of the bidding document.

The contracted company should provide high quality cleaning, gardening and waste management services using environmentally friendly cleaning products and supplies.

The Directorate’s layout includes offices, conference rooms, meeting rooms, parking, staff clinic and common areas, as well as elevators.

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Laura J. Boyer