Tendersinfo keep you informed about the latest events in the national and international Procurement Industry. Procurement News provides in-depth coverage of the procurement industry, including contract awards, contract additions, new contract wins, mergers and acquisitions. Tendersinfo through its tender news section provides an update on all domestic and global tendering opportunities, invitation to bid & trade leads.
Malta: Enemalta, Contracts Committee, Win Case over Tender Award
Publish Date : 09-Nov-2009
A contractor\'s action for the revocation of a tender award was dismissed by Mr Justice in the First Hall of the Civil Court after the court that Enemalta Corporation, which had issued the call for tenders, had saved Lm150,000 by its actions. Ragonesi & Company Limited and Alstom Elektrik Endustrisi AS filed their action against the Director of Contracts and Enemalta Corporation. They told the court that the defendants had issued a call for tenders for the purchase of a 90MVA Transformer by Enemalta.
The adjudication process was that known as the three envelope system in terms of which a prospective tenderer had to submit one envelope with a bid bond, the second envelope with the product specifications and the third envelope with the price. The two companies told the court that the Director and Enemalta had violated the tender conditions when they had split the tender into two parts and awarded the most costly aspect of the tender to EFACEC Energie AC which was to supply the main transformer.
The two companies were awarded that part of the tender which related to the supply of the earthing transformer. Furthermore the companies submitted that the adjudication of the main transformer was not in compliance with the tender documents as the specifications did not tally. However both the Director and Enemalta submitted that no violation of the tender conditions had occurred.
They further added that the two companies themselves had not satisfied the tender requirements. The court heard evidence that none of the tenderers had completely satisfied the tender requirements. But Enemalta had opted to award the major part of the tender to EFACEC Energie AC on the basis that this company\'s offer was Lm150,000 cheaper than that of the two companies. Mr Justice Azzopardi declared that defendants would have been irresponsible had they accepted a tender which was so much more expensive that the other tender received. The court therefore dismissed the writ.
