TCP enters into rice fumigation deal with lone bidder: PPRA grants relaxation

Public Procurement Regulatory Authority (PPRA) granting relaxation to Trading Corporation of Pakistan on Thursday, allowed the corporation to finalise the deal with lone bidder in the third tender for rice fumigation.
Sources told Business Recorder after scrapping two tenders, the TCP, in mid July, ie third time, invited bids (under clause 2(g) of PPRA rules 2004) from the fumigation companies duly approved and registered with all relevant government departments including Department of Plant Protection and the Ministry of Food and Agricultural (Minfa) for fumigation of rice lying in TCP godown at Karachi.
However, the state rung grain trader again failed to attract fumigation companies and again for the third time thin participation was witnessed in the fumigation tender. Only one bidder participated in the bid for fumigation of some 25,000 tons of Basmati rice worth Rs 2.11 billion procured in December 2008 from local traders, sources said, adding that according to PPRA rules three bidders are necessary for the award of tender.
The TCP has already scrapped two fumigation tenders during last one month because of less than three participation''s. In the first tender only one bidder came up, while in the second, only two companies took part in the tender, as a result both tenders had to be scrapped.
Aiming to attract more bidders, the TCP reduced the earnest money in the second and third tenders and fixed an earnest money of Rs 150,000 as compared to Rs 500,000 for the first tender. However despite reduction, participation remained thin. As per schedule, third fumigation tender was opened on July 23, 2010, at TCP head office, however interestingly, only one bid ie M/s Iqbal Chemicals was received.
The TCP then approached PPRA for relaxation in the rules to hire a fumigation company to conduct fumigation of rice stocks. Although the procured Basmati rice required regular fumigation against pest attack, the last fumigation was conducted in October 2009 with six months guarantee, which has already expired in April 2010 and now the rice stocks required immediate fumigation to avoid any pest attack.
Sources said on the request of TCP, PPRA has allowed the corporation to deal with a single bidder. "Third fumigation tender has not been scrapped and the corporation has been granted relaxation by PPRA to deal with single bidder participated in the tender," said Anjum Basheer, chairman TCP.
Technical bid, which comprises company performance and experience, was opened on July 23, 2010 while the financial bid was opened on July 29, 2010 in presence of the Price Evaluation Committee. A final meeting with single bidder was also held on Thursday to finalise the deal and hence the TCP awarded the tender to M/s Iqbal Chemicals at Rs 64 per ton.