Stringent measures coming for agencies deviating from standard bidding protocols – VP

…as Govt to begin contractor prequalification system based on capacity

In a critical move aimed at upholding transparency in Government contracts, Vice President Dr Bharrat Jagdeo has announced stringent measures against agencies deviating from standard bidding protocols.
This stern warning follows some controversy over the $2.1 billion contract awarded to Kares Engineering Inc for the construction of the Guyana Defence Force (GDF) Wharf.
Jagdeo, who is also the General Secretary of the People’s Progressive Party (PPP), defended the decision, asserting that Kares Engineering Inc secured the contract as the lowest bidder in a competitive tender process overseen by the National Procurement and Tender Administration Board (NPTAB). According to Jagdeo, NPTAB’s adherence to the standard bidding document was lawful and justified.
Speaking at a media briefing at Freedom House, Jagdeo stressed the importance of uniformity in procurement procedures: “There is a standard bidding document that should be used by every single government entity.”
NPTAB recently issued a statement clarifying the circumstances surrounding the contract award. The procurement process for the construction project involved a public tender where bids were evaluated independently, with Kares Engineering Inc emerging as the lowest responsive bidder.
However, controversy arose when Correia & Correia Ltd contested the decision in March 2024, citing outdated criteria in their bid review request. Jagdeo dismissed these claims, underscoring that any deviation from the approved Standard Bidding Document could open doors to corruption within government agencies.
“The procurement act mandates adherence to standardised forms and criteria,” Jagdeo explained, highlighting procedural safeguards intended to prevent arbitrary changes in bidding requirements. He emphasised that such deviations undermine the integrity of the procurement process.
“This is not about corruption,” Jagdeo affirmed, noting ongoing efforts to strengthen enforcement and combat irregularities in procurement. He acknowledged persistent challenges but reiterated the Government’s commitment to transparency and accountability in public spending.
He also pledged continued efforts to streamline procurement practices, ensuring adherence to established guidelines to safeguard against malpractice.
Contractors’ prequalification
Meanwhile, the rapid expansion of Guyana’s road network, housing sector and other infrastructure projects have seen an increase in the number of contracts being awarded. In an effort to increase transparency and efficiency in this process, the Government will be introducing a prequalification system for contractors.
According to Vice President, this system will ensure Cabinet members are supplied with all documents indication contracts being completed by one company and include a threshold for contractors to limit the contracts receiving no-objections for one company.
“If you’re pre-qualified to do work for $500M and above and you get one contract, and you’re at $450M, when the Cabinet paper goes there, the paper will say this contractor is pre-qualified for half a billion dollars and already has a contract for $450M, therefore the cabinet will immediately say; They have reached their capacity,” he explained.
The Vice President said in the current system, Cabinet is not aware of contractors’ current workload prior to approving new contracts.
The Government has complained about some contractors’ inability to meet deadlines stipulated on their assigned contracts.
Jagdeo said this new system will be implemented across the country and across all sectors.
To ensure its functionality, “all of the agencies will have to report through the centre, or a website about work that people have everywhere so that the cabinet, or government can have a full picture.”
He noted that this step is in addition to other efforts to upgrade the procurement system including the implementation of an open bidding process and evaluation of bids.
Currently, he noted that the bidding process is very competitive. According to the Vice President, “there are hundreds of bidding processes taking place simultaneously in Government Departments, regions, at the ministerial level, at the national level, in the semi-autonomous agencies and in the statutory bodies.”
He alluded to the road works from Craig to Garden of Eden on the East Bank of Demerara where forty-seven (47) bids were submitted for six lots. “Everybody under the sun bidding and some putting in some prices that can’t even build a community road,” he noted, adding that some of the contractors have incomplete contracts in other areas.
In May, Jagdeo announced that the Government is reviewing its procurement system countrywide in an effort to clamp down on corrupt practices.