Re: Notifications for Awarded Contracts.

**RJM** Mon May 31, 2010 5:18 pm

GadielCM, whether the two cited regulations do not explicitly state that the unsuccessful bidders should not be notified automatically on the outcome of tendering process unless it is “on request”, the confusion should be examined by PPRA. On my side, I still maintain my position that it is best practice to notify unsuccessful bidders on the outcome of the processing. I will try approach this issue in different angle, it goes without say that bidders are required to submit Bid Security or Bid Securing Declaration along with their bids and same should be returned to unsuccessful bidders once the successful bidder has submitted Performance Bond and sign the contract or after expiration of bid validity whichever is earlier. Now, how do we inform unsuccessful bidders to collect their securities after concluding the tendering process? In other words, how do we discharge unsuccessful bidders from Contract A? I believe it is best practice for PEs to inform the unsuccessful bidders that process has been completed and winner is, therefore you are required to collect your security or your declaration cease to have effect. This is how we discharge unsuccessful bidders from Contract A since the successful bidder is now executing Contract B and this mark the end of tendering process.

In the process, I visited Standard Bidding Documents issued by PPRA particularly Clause relating to Notification of Award, one of the Sub-Clauses state that “Upon the successful bidder’s furnishing of the performance security pursuant to ITT Clause…, the PE will promptly notify each unsuccessful bidder, notify the name of the winning bidder and the contract amount and will discharge tender security or tender declaration of the unsuccessful bidders pursuant to ITT Clause..”. GadielCM, if there is a confusion in the referred regulations, the question is what comes first, egg or chicken??

GadielCM Mon May 17, 2010 8:56 pm

RJM,
For me am against with your statement that '' as the matter of Principles the PE's to inform the unsuccessful bidders in conjuction with Rg 19(3) and that of Rg 97(11)/97. I dont agree this point because, it is not mandatory, rather, you can say, as the matter of PE's neccessity to unsuccessfully bidders and upon request the PE's may diclose the informations to who awarded the contract.

I say this because, when you refers to Rg 20 and that of Rg 21(1)/97/2005 there is no provision stating circumstances to inform the unsuccessful bidders. Rg 20(6) under rejection of all tenders, it advised that where all tenders are rejected pursuant to any of the foregoing sub-regulations and new tenders invited but not say to inform all rejected tenderers. So I see in all situations, the provisions in the Regulations give more advantages for successful bidder to get more informations rather than the unsuccessful one.

**RJM** Fri May 14, 2010 9:23 pm

Following the submissions of M. Chilongani and GadielCM have necessitated me to go back to the legislation. R19/97/2005 [Record of Procurement or Disposal Proceedings] has listed information which can be disclosed and which can not. R19(3)/97/2005 states "Subject to Regulation 89(, the portion of the record referred to in sub-paragraphs (c) and (g) of the sub-regulation (1), shall, on request, be made available to suppliers, contractors, service providers or asset buyers that submitted tenders, proposals, offers or quotations or applied for pre-qualifications, after a tender, proposal, offer or quotation has been accepted or procurement or disposal proceedings have terminated without resulting in a procurement or disposal contract" .

If we read R19(3)/97/2005 in conjuncture with R97(11)/97/2005 is there any confusion?. However, I believe as matter of principles PEs are required to notify individual unsuccessful bidders once PE has entered into contract the with successful bidder notwithstanding R97(12)/97/2005 OR should unsuccessful bidders rely on R97(12)/97/2005?

Regarding R97(14) (b)/97/2005, this prohibits disclosing unit prices submitted by the successful bidder for business reasons you cannot disclose bidder's prices to his competitors [Data Protection Law].

Michael Chilongani Fri May 14, 2010 5:06 pm

Mr Gadiel,
R97/14b/GN97/2005 states that ‘in advising unsuccessful tenderers of the price submitted by the successful tenderer pursuant to sub regulation (11) in no circumstances is any party of a tenderer’s schedule to be disclosed.

To my opinion the above sub regulation just add a condition to R97/11/GN97 that when inform unsuccessful bidders as per subregulation 11 then in no circumstances is any party of a tenderer’s schedule to be disclosed.

Thus sub regulation 14b still do not mandate PEs to notify bidders if not required. This subregulation is continuation of R97/14, 14a under which successful tenderer has an added advantage of being ‘advised of all the prices tendered with tenderer’s names not linked to the tender prices. Thereafter Sub regulation 14b enriches sub regulation 11 with a prohibition of not disclosing tenderer’s schedules when informing unsuccessful bidders but if so required.

GadielCM Fri May 14, 2010 2:36 pm

A bit I concur with Michael Chilongani for the interpretation of Rg 97(11)/GN 97 OF 2005 of the PPA, if it real enforce the PE's to notify the unsuccessful biders. The Rg 97(11) stipulate that ''Upon the entry of the procurement or disposal contract and, if required, the provision by the supplier, service provider, contractor or asset buyer of a security for the performance of the contract, notice of the procurement or disposal contract shall be given to other supplier, SP, ..........................., Specifying the name and address of the supplier............that has entered into contract and that contract price''.

From this sub regulation provision, it seems no mandatory to PE's to notify the unsuccessfuly bidders unlessmupon the bidder request, that why the wor '' If required'' was used in the regulation. If at all was the mandatory, the reglation would read as '' Upon the entry of the procurement or disposal contract shall be notified to supplier, sp,...............So let us call tAbdulatif to use the opportunity to request where as possible.

But what Rg 97(14-b) stipulate? for me I dont understand and interprete this provision with that of Rg 97(11). Would we scrutiny together?, for purpose of information to unsuccessful bidders?

Michael Chilongani Thu May 13, 2010 2:41 pm

Hi RJM

One thing that has been learned through experience is that most of local bidders do not read (the Tender Dossier/ Act) between the lines. Moreover, most of such bidders would prefer canvassing rather than lodging official enquiry in writing.

Abdulatif raised a concern that he does not get information once a contract has been awarded to another bidder. RJM in reply quoted R97(11)/GN97/2005 informing the bidder on the right to be notified. However, it should be noted that the regulation so referred has a pre condition of ‘if required’…..shall be given to other suppliers. Thus, as explained by RJM, this right is upon request by bidder in writing. Thus Mr Abdulatif is not notified because he did not officially require to be notified. My opinion is that The PEs are not mandated to write to each individual bidder unless an official enquiry is made.

Pursuant to regulation 97(12)/GN97/2005 the results of tender award SHALL be published in the Authority’s website, Government Gazette and in at least two newspapers of wide circulation and/or other appropriate information media on regular basis. The Procuring Entities (under this regulation) are mandated to publicize the results of tender award and this is among compliance requirements in checklist of procurement audit.

To my opinion, bidders are sufficiently notified on awards through mechanism under regulation 97(12)/GN97/2005 and if they so require (R97(11) & (14) they should request for such information in writing. The problem with most bidders (as highlighted earlier), they may not visit and read the publicly issued notices and later complain of not being informed!

Bidders MUST Visit PPRA website under tender Portal, Visit websites of PEs (if any, many PEs have websites nowadays), Read award publicised in various newspapers and request for clarification (in writing) on anything regarding tendering. PPRA must make sure that all tender awards by PEs are made public as per PPA.

Michael Chilongani.

**RJM** Tue May 11, 2010 8:06 pm

Abdulatif, as provided in the referred regulation, in case you need to know the outcome of the contract award and reasons why you are bid was not successful, you have to request in writing the information in writing from the respective Procuring Entity. Based on the referred regulation, the entity is obliged to respond.

Abdulatif Tue May 11, 2010 3:55 pm

RJM, Please assist me on the whereabouts of how to go about the request for contract clarification.

**RJM** Tue May 11, 2010 1:39 pm

Abdulatif, Indeed this is your right according to R97(11)/97/2005 which states " Upon the entry into force of the procurement or disposal contract and. if required, the provision by the supplier, service provider,contractor or asset buyer of a security for the performance of the contract,notice of the procurement or disposal contract shall be given to other supplier, service provider, contractor or asset buyer, specifying the name and address of the supplier, service provider, contractor or asset buyer that has entered into the contract and the contract price". Therefore, is high time now you exercise your right by demanding the notification from the Procuring Entity. Moreover, Abdulatif you can demand not only notification for award but also the reasons why your bid was not successful according to R97(14) (d), (e) & (f)/97/2005.

Abdulatif Tue May 04, 2010 8:39 pm

As a competent bidder, how come i don’t get notified once a contract has been awarded to another bidder?
There should be a formality whereby each and every bidder who has bid for a specific tender to be notified about awarded contracts.

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Notifications for Awarded Contracts.