Works defends OPM tender

Two companies were disqualified from the tender for the construction of new offices for the prime minister, of which one bid more than N$52 million below the tender amount causing concern that it could not complete the project.
Ministry of Works and Transport permanent secretary Willem Goeiemann yesterday dismissed allegations that there were irregularities in the awarding of the tender.
He gave a detailed explanation on how the tender was awarded and why the two companies were disqualified before a final recommendation was made from the three remaining companies.
DTA president McHenry Venaani last week claimed that he had evidence proving that there were tender irregularities. He asked why the lowest bidder – a joint venture between China Jiangsu and Oshipe Construction - did not get the contract. Their bid was N$968 million.
The Tender Board on 29 March this year received tenders for the project from one company and four joint ventures.
The second-lowest bid of N$1.003 billion was submitted by Babyface Civils CC in a joint venture with China Jiangxi International.
Trans Afrique Trading Enterprises and Jiangsu Zhengtai JV put in a bid of N$1.01 billion.
Namibia Construction bid N$1.03 billion while New Era Investment and Octagon Construction bid N$1.04 billion.
“I under no circumstances favoured any company. I do not instruct the Tender Board, I only make recommendations,” said Goeiemann.
He said he “would not hesitate supporting the devil” should all the compliance and regulations be in order.
Goeiemann said his final recommendation to the Tender Board was that the joint venture between China Jiangsu and Oshipe Construction was more than N$52 million below the tender amount and the shortfall was too big.
He said when contractors bid so low, projects usually fail because they start running into problems.
Goeiemann also pointed out that the tender forms specifically requested the identification of plant and personnel to demonstrate the contractor’s capability to properly and successfully complete the project and that was found insufficient for this project.
The ministry also found it worrisome that the Namibian partner in this joint venture had only one staff member registered with the Social Security Commission and that some of the tender documents were not completed.
According to Goeiemann Namibia Construction was disqualified for failure to initial certain pages and failing to submit an affirmative action certificate.
Goeiemann said he recommendation that the second-lowest bidder - Babyface Civils CC and China Jiangxi International - should be awarded the tender.
The principal agents of the project, Rynand Mudge Architects, rejected Venaani’s assertion that the tender price was reduced from N$1.1 billion to N$850 million, giving other bidders a chance to alter their bids to accommodate the new specifications.
Mudge said this is a huge misunderstanding and that when contractors tender they provide certain rates while the client (OPM) also sets certain provisional amounts that can be reduced.
“It is the client’s money and they can decide to reduce this to reduce costs. The contractor can only complain if it is reduced by more than 25%, which was not done.”
He said provisional amounts can include anything from lifts to smoke and fire detection equipment, audio-visual equipment and air-conditioners.

ELLANIE SMIT