Contractors move to halt award of new hospital roads contract

Bonnici Brothers Ltd and Elbros Construction Ltd yesterday filed a judicial protest in the First Hall of the Civil Court against the Director of Contracts, the Director of Roads, the Minister of Finance and the Prime Minister.

The two companies defied the authorities from awarding a tender for the construction of a new intersection next to the new hospital to Polidano Brothers Limited and to Road Supply Services Ltd on the grounds that such an award would be illegal and contrary to the best interests of the country.

They declared they had submitted an offer for the construction of new roads close to the new Tal-Qroqq hospital. The procedure adopted for the adjudication of the tenders was that known as "three packets" whereby every offer for a contract of a value in excess of Lm250,000 had to be presented in three packets that would be opened separately. This system was introduced in order to ensure that the adjudication process would be transparent, fair and anonymous.

According to these procedures, the first packet had to contain details about the tenderer and the guarantees offered, the second would contain the technical specifications and the third the financial aspects. Any bidder who failed to successfully comply with the specifications in respect of any one packet would be discarded.

The two companies declared that eight bidders had submitted an offer for the tender. When the second technical packet was opened, only the two companies filing the protest and the consortium formed of Polidano Bros Ltd (Caqnu) and Road Servicing Ltd satisfied the requirements.

The Director of Contracts had confirmed in a letter issued on October 26, 2001 that the offer submitted by Bonnici Bros Ltd and Elbros Construction Ltd complied with the tender specifications.

By means of a notice published on December 28, 2001, prior to the third packet being opened, the Director of Contracts had decided to halt the tendering process that had already commenced and to issue a new tender with amended specifications.

The two companies had objected to this decision after paying a deposit of Lm25,000 in accordance with law. The two companies had alleged that the halting of the procedures was ultra vires the powers of the Director of Contracts. After a public hearing it was decided by the General Committee for Contracts that the tendering process had to continue and that the third financial packet had to be opened.

It then resulted that the tender submitted by the two companies and by their competing consortium were technically compliant and that the financial packets were to be opened on January 29. It also resulted that the financial offer made by the two companies was of Lm893,405.58, and that submitted by Polidano Bros Road Services Ltd was of Lm1,434,350.82. The offer submitted by the competing consortium was therefore half a million liri more expensive than that submitted by the two companies.

The two companies said in their protest that as soon as the financial packets were opened the Director of Roads began alleging that the offer submitted by Bonnici Bros Ltd and Elbros Construction Ltd were not up to technical specifications even though the companies had received letters confirming that they were technically compliant.

The Director of Roads had raised a number of difficulties with the two companies after the financial packets were opened even though these issues had never been raised before. This, the two companies said, gave rise to suspicion that for some obscure reason the authorities were ignoring the basic principles of law and the fact that the tender submitted by the two companies was Lm500,000 cheaper than that submitted by the other qualifying company.

Bonnici Bros Ltd and Elbros Construction Ltd said they had received a letter from the Director of Contracts in which they were informed that their offer was not up to specifications. The two companies declared it was obvious that the authorities wished to award the tender to Polidano Brothers Ltd even at the cost of ignoring the laws of the land.

They concluded their protest by calling upon the authorities not to award the tender to Polidano Brothers Ltd/Road Supply Services.

Dr Franco Vassallo signed the protest.