Nami Hardware Limited v Mbale District Local Government (Application 7 of 2024)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The Tribunal held that the Respondent erred in disqualifying the Applicant's bid on grounds that it did not attach the code of conduct in ESHS form and did not attach organisation qualification form. The Tribunal found that the Applicant had submitted the required ESHS documentation and qualification forms, though not in the exact format prescribed. Applying the principle that substance prevails over form, the Tribunal set aside the contract award and remitted the procurement for re-evaluation.
Outcome
Contract award set aside and procurement remitted for re-evaluation
Facts
Mbale District Local Government tendered for construction of a three-classroom block at Jewa Primary School. Five bidders submitted bids. The Evaluation Committee recommended Gebana Company Ltd, whose bid exceeded the reserve price. Following negotiation, Gebana Company Ltd was declared best evaluated bidder at UGX 157,190,152. Nami Hardware Ltd's bid was disqualified on grounds that it did not attach the code of conduct in ESHS form and did not attach organisation qualification form. Nami Hardware Ltd filed an administrative review complaint which was dismissed. The Applicant then filed this application before the Tribunal seeking review of the procurement decision.
Issues
- Whether the Applicant's bid was rightfully disqualified by the Respondent?
- What remedies are available to the parties?
Orders
- Application allowed.
- Award of contract to Gebana Company Ltd set aside.
- Respondent directed to re-evaluate the bids in a manner not inconsistent with the decision of the Tribunal, the bidding document, and the law.
- Re-evaluation to be completed within ten (10) working days from the date of this decision.
- Respondent to refund the administrative review fees paid by the Applicant.
- Tribunal's suspension order dated January 25, 2024, vacated.
- Each party to bear its own costs.
Rules and key headnotes
Legislation cited (2)
- Interpretation Act s.43
- Public Procurement and Disposal of Public Assets (Procuring and Disposing Entities) Regulations 2023 reg.26
Cases cited (5)
- Samanga Elcomplus JU v PPDA & UEDCL (Application No. 4 of 2021)
- Frida B. Kwikiriza v Buliisa District Local Government (Application No. 28 of 2022)
- Kasokosoko Services Ltd v Jinja School of Nursing and Midwifery (Application No. 13 of 2021)
- Orungo Market Vendors Association v Amuria District Local Government (Application No. 41 of 2022)
- Gat Consults Limited v National Water and Sewerage Corporation (Application No. 30 of 2021)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.