A procurement tribunal upholds the decision of the Central Bank of Kenya CBK to award a cleaning and gardening contract to a company that quoted an abnormally low price, which could not meet the minimum wage of all staff required for the job. Kamtix Cleaners Co. Ltd, a two-year contract, was awarded for cleaning and related services at the CBK Eldoret branch, after quoting a price of Sh 2.9 million.
The tender was awarded in March this year after it emerged as the lowest bidder among the 24 companies that sought the contract.
The cleaning services at the branch are provided by the company.
The award caused a reaction from one of the losers, Peesam Ltd, which sought a review on the grounds that the price quoted by the winning bidder was abnormally low.
Peesam said it would do the job at a cost of Sh 4.4 million. It claimed that the amount quoted by the winning bidder was too low and could not meet the minimum wage of workers within the two years, as per the government's guidelines.
The tender document states that the personnel to handle the task include two supervisory staff, one professional staff management and two ground maintenance staff.
Other tender losers such as One Way Cleaning Services Ltd had quoted a price of 8.4 million, Jubilant Cleaning Services Sh 7.9 million Robu Cleaning Services Sh 6.6 million Glacier East Africa Ltd Sh 6.5 million and Jepco Services Renovators Ltd Sh 5.6 million Peesam Ltd had quoted a price of Sh 8.4 million, according to the Public Procurement Administrative Review Board PARB.
CBK stated that it had already ascertained that the tender of Kamtix Cleaners Ltd was not an abnormally low tender that would raise concerns about its ability to perform the resultant contract.
It said that the tenderers were required to show evidence proving adherence to minimum wages in accordance with the government's guidelines on payment of wages.
Both Peesam and Kamtix submitted the evidence and CBK confirmed that Kamtix had fully complied with the minimum wage requirements.
Kamtix submitted nine payslips covering a period from November 2021 to January 2022, with staff salaries ranging from Sh 15,500 to $22,500.
CBK said the allegations raised by Peesam were far-fetched and untruthful.
In its ruling, the tribunal stated that it is the responsibility of the procuring entity to identify a potentially low tender and not the tenderer.
The Board dismissed the request for review because it was not taken into account by the provisions of Section 80 1 and 2 of the Public Procurement and Asset Disposal Act.
It stated that CBK the Act or clauses in the Tender Document.
The contracted firm is expected to provide cleaning and gardening and waste management services of high standards using environmentally friendly cleaning products and supplies.
The Branch has office space, conference facilities, meeting rooms, Parking Area, Staff Clinic, and common areas, as well as elevators.