The Gauteng Department of Roads and Transport (GDRT) has welcomed the judgement of the North Gauteng High Court on a review application brought by losing bidders to interdict the awarding and finalization of the tender.
The tender is for the construction of Vaal River City interchange in Vanderbijlpark, Sedibeng District Municipality. Ditshimega Projects and Training (PTY) LTD was awarded the tender.
Applicants, Mapitsi Civil Works (PTY) LTD and MECSA Construction (PTY)LTD, had sought interdictory orders to interdict, prohibit and restrain the Department from finalising, signing as well as implementing the formal awarding agreement with the awarded party.
The court found that disregarding internal dispute resolution procedures, overlooking and disregarding prescribed procedures can have consequences for bidders. It also agreed the applicants’ failure to comply with prescribed procedures was their own doing and cannot be blamed on the Department.
They had sought remedy, contending that the Department’s decision to award the tender to the second respondent (Ditshimega Projects and Training (PTY) LTD) in circumstances where the latter had not complied with mandatory requirements. The applicants viewed this as a deviation from the published conditions.
Applicants had alleged the certificates of completion submitted by the second respondent were uncertified, not for a project that was relevant and similar to the tender project.
In April 2023, the Department published an invitation to bid for a tender for the construction of the Vaal River City interchange (K174/R42). The invitation contained terms and conditions, fulfilment of which would qualify a bidder to be awarded the tender.
Conditions stipulated the Department would apply 90/10 preference point system in terms of Preferential Procurement Regulations of 2017. This meant that those bidders who did not meet prerequisites and criteria would be disqualified and not to be considered in the further stages of the evaluation process.
It also determined how functionality would be scored and a threshold necessary for further consideration in the process. This included the assessment would include company’s experience in road rehabilitation or construction category.
It further indicated the bidder with the highest number of points will be recommended for awarding of the tender.
The Department further indicated there was an internal dispute resolution mechanism that any bidder was made aware of before assessment. This mechanism enables aggrieved or dissatisfied bidders with a procedural aspect in the evaluation process to file a notice of intention to appeal.
Accordingly, the Department’s bid evaluation committee assessed a total of twenty-three (23) bids. This was reduced to five (05) when the rest were disqualified for failure to meet prerequisites. One was later disqualified owing to failure to comply with further mandatory requirements.
In its analysis, the court found the applicants’ launching of the urgent application was an unwarranted deviation from prescribed procedure to challenge the decision of the Department.
The court noted that the applicants brought the application without first exhausting internal dispute resolution procedures, unwarrantedly overlooked, and disregarded a prescribed procedure.
It also agreed with the Department’s contention that the applicants’ failure to comply with prescribed procedures can only result from their failure to attend indicated mandatory meetings where pertinent aspects of the tender were explained to prospective bidders.
The court also found that the impugned first and third certificates of completion submitted by the Ditshimega Projects and Training (PTY) LTD were in fact relevant and similar to the tender project and, therefore, compliant with the tender specifications. This was confirmed by the Construction Industry Development Board (CIDB), an statutory entity to transform the construction industry through promotion of inclusivity and high ethical standards.
For more information, please contact
Head of Communication
Ms Melitah Madiba
Cell: 073 644 9935
MEC's Spokesperson
Mr Lesiba Mpya
Cell: 078 450 9841
E-mail; pressoffice.gpdrt@gauteng.gov.za
