The Independent Electoral and Boundaries Commission (IEBC) has admitted an error in its tender for a new elections management system, while rejecting allegations that the procurement process was designed to favour a South Korean company.
The commission disclosed that it mistakenly required bidders for the Integrated Elections Management System to provide performance security equivalent to 20 per cent of the contract price.
IEBC says it has identified the error and is preparing an addendum to correct the requirement, noting that the law caps performance security at 10 per cent of the contract price.
The admission comes as the commission faces a challenge against the tender, which was advertised on August 11.
Despite acknowledging the error, IEBC has defended the rest of the tender, maintaining that it is neither flawed nor discriminatory and was not tailored to benefit any particular bidder.
The commission has also defended the Ksh30 million tender security requirement, arguing that the procurement is a framework contract and that the law allows tender security to be set as an absolute amount rather than as a percentage of the tender value.
IEBC has further rejected allegations that the tender specifications were designed to favour South Korean firm Miru Systems Limited.
The allegations have been described by the commission as speculative, with IEBC arguing that the applicant has failed to identify any specific requirement that would give Miru Systems an unfair advantage.
“The tender is strict, it’s either you are compliant or not; for the bidder to succeed, it should be hundred percent. With respect to tax, the requirements is that they are tax compliant by whatever instruments they have in their country,” IEBC argued.
IEBC defends local participation requirement
On local participation, the commission says the tender requires the successful bidder to meet a 40 per cent local content threshold.
IEBC says the requirement is intended to promote local participation, skills transfer and involvement of Kenyan firms in the implementation of the elections management system.
The procurement has, however, come under scrutiny following a challenge by Galadirel Investments Limited, which argues that the tender is flawed, discriminatory and violates Article 227 of the Constitution.
The applicant has also questioned the Ksh30 million tender security requirement, arguing that the tender document does not provide the value of the contract.
“The Applicant has perused the said tender document and has found the following breaches; There is no value of the tender provided despite the Respondent issuing a tender security value of Ksh.30,000,000 contrary to Section 61 of the PPADA,” reads court documents.
Through lawyer Julius Miiri, Galadirel Investments further argues that the tender contains material omissions, contradictions, undefined requirements and incomplete provisions.
The applicant says these shortcomings make it difficult for prospective bidders to prepare and submit responsive and comparable tenders on a clear, transparent and uniform basis.
“The aforesaid omissions, contradictions and ambiguities are material and have the potential to affect competition, responsiveness, evaluation, comparability of tenders and equal treatment of tenderers, thereby rendering the procurement process procedurally defective,” the applicant argues.
Review Board to determine fate of tender
The Public Procurement Administrative Review Board is expected to issue its decision on the challenge on Friday next week.
IEBC is asking the Board to dismiss the challenge and lift the suspension placed on the procurement process, allowing the commission to proceed with the next stages of the tender.
The dispute comes at a critical stage in preparations for Kenya’s next General Election, with the commission seeking to establish a new Integrated Elections Management System to support the management of electoral processes.
