Jack Warner said on Saturday he granted approval to the Airport Authority to award a multi-million dollar contract to Harry Persad and Sons Limited for the upgrade of the Approach Lighting System and the Airfield Lighting Control and Monitoring System at the Piarco International Airport.
The value of the contract is TT$47, 785,768.92 VAT exclusive.
In a media release Warner said he also approved a contract to United Engineering Services Limited for the upgrade of the Airfield Lighting Control and Monitoring System at the Crown Point International Airport in the sum of TT$35,402,400.62 VAT exclusive.
He said he acted in accordance with the recommendation of the Airport authority's senior management and the section of the constitution that gives a minister who has been assigned responsibility for any department of government, general direction and control over the department.
He stated that as the line minister responsible for the Airports Authority (AA) and in the absence of a board of directors at the AA he gave the approval in keeping with the provisions of the constitution,
He explained that the process began under the previous administration and that there was a rigid evaluation process after which he awarded the contracts to the companies, which received the highest ranking from the evaluation of the tenders.
Warner stated that there was no wrongdoing or corrupt practice in the award of the contracts and pledged not be deterred by his accuser, Inshan Ishmael or "anyone who might be inclined to pitch stumbling blocks in my way".
Warner added that he will "always discharge my duties in accordance with my oath of office and will always work in the service of all of the people of Trinidad and Tobago."
He said that in view of all the negative publicity over the matter "I wish to advise that after further consultation, a decision was taken to have the project retendered since my decision to share the contracts between the two companies was not part of the initial established tendering rules."
The minister gave a detailed explanation of the process, which started at an AA board meeting on July 31, 2009 at which the board approved a tender call for the upgrade of the Airfield Lighting Control and Monitoring System at both airports.
At the same meeting the board also approved the evaluation Committee and the Evaluation criteria, which included a two envelope system due to the complexity of the systems.
He explained that the technical proposals included the technical evaluation form with supporting documents, tender security and implementation strategy. The Price proposal included the letter of tender, Appendix to tender and bull of quantities.
"The tender call note to the board stipulated that only Price proposals of companies scoring over 75% will be eligible for opening of their financial packages", he said.
The tender was advertised in the national press from October 2 to October 8, 2009 with a mandatory pre bid meeting and site visit on Wednesday October 14, 2009 at Piarco airport and on Thursday 25, 2009 at Crown Point.
Warner said 19 companies attended the pre-bid meeting and site visit at Piarco and 18 attended at the Tobago airport. he said bids closed on December 18, 2009 "and the tender box was publicly opened on the same day by Ms. Kathleen Gittens of the Legal Department and witnessed by Ms. Sheila Ramdhanie, Facilties and Maintenance Manager and Mrs. Carmela Wallace- Shanklin of the Financial Comptroller’s office.
"Seven submissions were received on the date of the opening with Plant Solutions Ltd declining to submit a bid.
"At the February 2010 Tenders Committee meeting members rejected paper No. 6 of 2010 for the recommendation of the Technical Evaluation Committee to invite United Engineering Services Ltd to the opening of their financial package as they were the only company to score over 75% in the Technical Evaluations. Members were advised of the following:
- Abort the Tender Process and return to the un-opened Financial Packages to each Bidder; or
- Re-issue a revised Tender package and invite all companies who purchased the original tender packages to submit bids
The re-issue of the revised Tender package was sent out on March 8, 2010 with tenders closing on March 24, 2010 with some changes:
- From a two envelope system to a one envelope system
- Amendments in the evaluation criteria to include costing and changes in the relative ranking of each criteria
- More emphasis to be placed on the past performance of the Contractor and their Sub Contractor
- Similar experience must be airfield electrical experienceA Sub Contractor can only be associated with one main Contractor.
"The revised Bids closed on March 24, 2010 and the tender box was publicly opened on the same day by senior officials of the Airports Authority. Nine (9) submissions were received on the date of opening," the minister said.
Warner explained that the evaluation process of the bids started on April 14, 2010, with presentations by bidders over the period May 19 to June 2, 2010. The Evaluations were then completed on June 2, 2010.
"The Bids from ANSA Technologies and JUSAMCO Pavers Ltd were deemed inadmissible as both companies included Airside Installations as their Sub Contractor. The Evaluation form, pg EF 15 specifically indicated that “each Sub Contractor can only be associated with one main contractor”.
"Ms Tara John, Senior Legal Counsel reviewed all packages for compliance. Harry Persad and Sons Ltd and TEK Egineering/Jantesa were the only two companies to be fully compliant. The review of the financials was done by Ms. Lala Nasib, Financial Comptroller.
"TEK Engineering Ltd and Jantesa, S.A and Subsidiaries being responsible for procurement formed a joint venture for this project with Jantessa, S.A. and Subsidiaries being responsible for procurement of the FEC equipment and all other airfield items.
"The review showed that although TEK Engineering is financially sound (rating 9), Jantesa scored low at 4 and there were concerns regarding their ability to maintain a “going concern” status. The other five companies are all financially sound with the exception of GLF Contruction Corporation which had a rating of 2.
"Although they had a high sales turnover, all the ratios were all below the industry standard average and were cause for concern," Warner explained.
"Due to the estimated cost of this project being in excess of $50 million and the nature and complexity of the project, the evaluation team members agreed to consider only contractors with an average annual turnover over the last five years to be no less than $25 million and that each company should be a registered company for no less than 5 years," he added.
He said three companies demonstrated that they had successful experience as a contractor or Sub Contractor in the experience of at least 2 airfield electrical projects of a similar nature and complexity which is an indication of the ability of the Contractor to successfully execute the project within the limitations of the airfield.
"Harry Persad and Sons Ltd, GLF Contractors and United Engineering Ltd were the companies who selected Sub Contractors with the necessary airfield electrical experience. They were ranked high in similar work experience," the minister said.
The evaluations were completed on Wednesday, June 2, 2010, and the two contractors were chosen because they ranked the highest.
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