SME millions in limbo
The Roads Authority (RA) says cleaning and maintenance bids that already closed in February and which included hundreds of SMEs paying bid securities totalling millions, are still being evaluated.
More than 800 companies submitted bids in the hope that the contracts would be speedily, especially given that millions in bid reserves were paid. Although 864 companies submitted bids not all were able to pay the bid security attached to the bids. However, those who did not pay were by far in the minority.
Several SMEs recently complained to Namibian Sun about the delay in the awarding of the bids, as well as the fact that their bid reserves were laying idle while they were struggling to make ends meet during the current economic crisis.
The bids, which include cleaning of rest places and reserves, maintenance of concrete and steel structures, mowing of grass in the road reserves and the routine maintenance of bitumen roads, were advertised in December last year and closed in February this year.
More than 350 companies submitted bids for the cleaning of rest places and reserves in Oshakati, Otjiwarongo, Keetmanshoop and Windhoek.
A further 36 companies submitted bids for maintenance of concrete and steel structures in Otjiwarongo, while 140 companies submitted bids to mow grass in road reserves in Oshakati, Otjiwarongo and Windhoek.
For the routine maintenance of bitumen roads in Keetmanshoop, Otjiwarongo, Oshakati and Windhoek more than 330 bids were received.
According to legislation, the bids are only valid for 180 days, which means there are less than 30 days left for them to be awarded.
RA CEO Conrad Lutombi said none of the winning bids have been announced yet, but added the evaluation process is still ongoing.
“Funds are not held by the RA. The bid securities will be returned from the banks once the process has been concluded,” he said.
Lutombi added the successful bidders will only be announced once the procurement process has been concluded.
He further pointed out that the exemption of bid securities became effective on 14 March and the bids in question closed prior to this.
“The Roads Authority has to comply with the Public Procurement Act and do due diligence before tenders are awarded.”
He said the RA has taken the necessary steps to ensure its operations are not affected, as it continues to carry out its mandate. In March this year government announced the exemption of bid securities - or bank guarantees - when applying for public tenders. A bid security is an amount of money that may be calculated as a percentage of the budget estimate of a procurement requirement or a percentage of a bidder's bid price. It is used by the client, in this case government and its parastatals - as protection against bidders withdrawing their bids prior to the end of their validity period, or for refusing to sign the contract. The bid security is intended to deter bidders from withdrawing their bids, because they would otherwise forfeit the bid security amount to the client. It gives the client some assurance the selected bidder will sign the contract or otherwise forfeit their bid security.
ELLANIE SMIT
More than 800 companies submitted bids in the hope that the contracts would be speedily, especially given that millions in bid reserves were paid. Although 864 companies submitted bids not all were able to pay the bid security attached to the bids. However, those who did not pay were by far in the minority.
Several SMEs recently complained to Namibian Sun about the delay in the awarding of the bids, as well as the fact that their bid reserves were laying idle while they were struggling to make ends meet during the current economic crisis.
The bids, which include cleaning of rest places and reserves, maintenance of concrete and steel structures, mowing of grass in the road reserves and the routine maintenance of bitumen roads, were advertised in December last year and closed in February this year.
More than 350 companies submitted bids for the cleaning of rest places and reserves in Oshakati, Otjiwarongo, Keetmanshoop and Windhoek.
A further 36 companies submitted bids for maintenance of concrete and steel structures in Otjiwarongo, while 140 companies submitted bids to mow grass in road reserves in Oshakati, Otjiwarongo and Windhoek.
For the routine maintenance of bitumen roads in Keetmanshoop, Otjiwarongo, Oshakati and Windhoek more than 330 bids were received.
According to legislation, the bids are only valid for 180 days, which means there are less than 30 days left for them to be awarded.
RA CEO Conrad Lutombi said none of the winning bids have been announced yet, but added the evaluation process is still ongoing.
“Funds are not held by the RA. The bid securities will be returned from the banks once the process has been concluded,” he said.
Lutombi added the successful bidders will only be announced once the procurement process has been concluded.
He further pointed out that the exemption of bid securities became effective on 14 March and the bids in question closed prior to this.
“The Roads Authority has to comply with the Public Procurement Act and do due diligence before tenders are awarded.”
He said the RA has taken the necessary steps to ensure its operations are not affected, as it continues to carry out its mandate. In March this year government announced the exemption of bid securities - or bank guarantees - when applying for public tenders. A bid security is an amount of money that may be calculated as a percentage of the budget estimate of a procurement requirement or a percentage of a bidder's bid price. It is used by the client, in this case government and its parastatals - as protection against bidders withdrawing their bids prior to the end of their validity period, or for refusing to sign the contract. The bid security is intended to deter bidders from withdrawing their bids, because they would otherwise forfeit the bid security amount to the client. It gives the client some assurance the selected bidder will sign the contract or otherwise forfeit their bid security.
ELLANIE SMIT
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