Transparency International Pakistan has reiterated that since the terms on which contract has been awarded by PIA to Dubai based Transworld Aviation for five years, on minimum guaranteed annual orders of US $40 million have not been mentioned in the tender documents "this contract is a mis-procurement".
Society of Aircraft Engineers of Pakistan (SAEP) of PIA in its letter sent to the Managing Director PIA on September 19 had raised several questions/objections on the award of "investment and consultancy in procurement of all aircraft spare/GSE and sale of surplus inventory" to Transworld Aviation".
Based on SAEP's information, Adviser, Transparency International Pakistan Syed Adil Gilani has again today (September 29) in a letter sent to the Managing Director, PIA invited his attention to the Supreme Court of Pakistan's decision in the famous Pakistan Steel Mill judgement on August 2006, for the portion of change of tendered terms and awarded terms, one reason of nullifying the contract agreement given in the Supreme Court order was that the "final terms offered to the successful consortium which were not in accord with the initial public offering given through advertisement."
Transparency International Pakistan in its letter said: It is strange that PIA has awarded a contract to a company for 5 years, on minimum guaranteed annual orders of US $40 million, as these terms are alleged to have not been included in the Tender Documents by PIA. This is not allowed under following rules of PPRA ordinance 2002.
Rule 29. Evaluation criteria: Procuring agencies shall formulate an appropriate evaluation criterion listing all the relevant information against which a bid is to be evaluated. Such evaluation criteria shall form an integral part of the bidding documents. Failure to provide for an unambiguous evaluation criteria in the bidding documents shall amount to mis-procurement.
Rule 30. Evaluation of bids: (1) All bids shall be evaluated in accordance with the evaluation criteria and other terms and conditions set forth in the prescribed bidding documents. Save as provided for in sub-clause (iv) of clause (c) of rule 36 no evaluation criteria shall be used for evaluation of bids that had not been specified in the bidding documents.(3) A bid once opened in accordance with the prescribed procedure shall be subject to only those rules, regulations and policies that are in force at the time of issue of notice for invitation of bids.
Rule 31. Clarification of bids: (1) No bidder shall be allowed to alter or modify his bid after the bids have been opened. However the procuring agency may seek and accept clarifications to the bid that do not change the substance of the bid. The allegations of Society of Aircraft Engineers of Pakistan if determined as correct then this contract is a mis-procurement, Transparency International Pakistan letter said. Transparency International Pakistan Adviser, Adil Gilani requested the Managing Director to check the points raised by TI Pakistan in its two letters in September, and if the allegations of violations are correct, to avoid the mis-procurement charge under Rule No 50, re- invite the tender which shall be based on the procedures prescribed by the Public Procurement Rules, 2004.
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