Tenders board allows NHIF property tender to proceed

The National Hospital Insurance Fund building in Nairobi. PHOTO | JEFF ANGOTE | NMG

National Health Insurance Fund (NHIF) has been given the nod to award a tender for letting and management services for its NHIF building, its car park complex and Contrust House in Nairobi.

This is after the Public Procurement Administrative Review Board dismissed a request by a losing bidder to nullify the tender, which had been won by Gimco Ltd.

NW Realite Ltd challenged the multi-million-shilling tender in November and the process was temporarily halted in December by the board, for the hearing of the request for review.

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The firm was knocked out at the financial evaluation stage but it challenged the process saying the evaluation committee focused on staff costs, terming it as additional costs with the intention to unfairly reduce its chances.

The board heard that the financial proposal was, therefore, not evaluated in accordance with the set criteria.

But the board chaired by Irene Kashindi said the evaluation committee also found another tenderer non-responsive on account of having factored in additional costs in the submitted detailed price schedule, which was noted not financially viable to NHIF.

“In totality, given the above finding and analysis, the Board concludes that the second respondent (NHIF) evaluated the applicant’s bid in accordance with the provisions of the tender document as read with section 80(2) of the Act,” said Ms Kashindi.

Six companies submitted their bids when the tender was closed on September 8 and the process proceeded to the technical evaluation stage where two companies were knocked out for being non-responsive.

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Three others did not pass the financial evaluation stage and Gimco Ltd was found to have met all the requirements and it was recommended that it be awarded the tender.

The winning bidder will earn 2.9 percent in management fees, and 4.35 percent in letting fees respectively, all-inclusive of 16 percent value-added tax.

“Consequently, we deem it fit to dismiss, which we hereby do, the applicant’s request for review for lacking in merit,” the board said.

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