AG to advise Govt on compensation for Topco – Harmon

Juice contract

Attorney General Basil Williams is expected to advise Government on the recommendation to compensate a local juice company, which was wronged in the Education Ministry’s awarding of a contract.

Tropical Orchard Products Company (Topco), a subsidiary of Demerara Distillers Limited (DDL), recently won its appeal to the Bid Protest Committee over the Government’s decision to award its supply contract to another company – from Suriname.

The Bid Protest Committee, which was established to facilitate appeals for the review of contracts, ruled that the Education Ministry did not follow the proper criteria in awarding its contract and that the local juice company therefore needs to be compensated.

But Government is yet to make a decision based on the ruling made by the Bid Protest Committee.

According to Minister of State Joseph Harmon, the Attorney General is charged with advising the Government on all legal matters.

Education Minister Dr Rupert Roopnaraine, had indicated that his Ministry is still reviewing the report compiled by the Committee.

Topco was a long-time supplier of juices to the Guyana Government for its national school feeding programme. That is until the Education Ministry, the procuring entity, deemed its bid for a continuation of the contract unsuitable, based on past performance.

According to the Committee, which is based at the National Procurement and Tender Administration Board (NPTAB), the Education Ministry failed to make known that past performance was a criterion for selection beforehand.

The evaluation committee also observed that the Ministry used an “unlawful procedure to assess the bid of (Topco)”.

The evaluation committee has a specific remit from which it should not deviate. Firstly, it must only use the evaluation criteria that are in the tender documents to evaluate the bidders. Secondly, using these criteria, it determines the lowest evaluated tender.

“Thirdly, it conveys its recommendation to the procuring entity in a timely manner. No scope is given to the evaluation committee to use any criteria, other than what is set out in the tender.”

The Bid Protest Committee went on to rule that pursuant to Section 53 (5) of the Procurement Act, the procuring entity is ordered to compensate the Complainant for the cost of the preparation of its bid.

The bidding was done by restricted tendering. The other six bidders were Caribbean International Distribution Inc, Guyana Beverage Inc, Banks DIH, Topco, ANSA McAL Trading Ltd and Continental Foods Inc.

Topco’s bid, $506.6 million, was the lowest one of all. Citing issues with performance, such as expiration dates being breached and spoilage, the Ministry wrote Topco a letter to inform the company that it had been unsuccessful.

Despite Topco responding and asking for its bid to be reviewed in accordance with the criteria set out in the bid documents, Government did not reply. This stance continued until Topco complained to the Bid Protest Committee.

After Topco lost its bid last year, Government awarded the contract to supply boxed juices locally to Caribbean International Distribution Inc (CIDI), a subsidiary of Rudisa Beverages Company of Suriname. It is a decision that was criticised as Topco was a local company providing employment to many, as it sources its raw materials for juice from local farmers.

This bid protest committee will complement the work of the Public Procurement Commission to further Government’s commitment to transparency in the public procurement process.