Fresh tender row hits laptop plan

A pupil using a laptop. Uncertainty has hit the Sh24 billion schools laptops tender after one of the three shortlisted companies questioned the process ahead of a crucial decision by the Education Ministry on which firm will be picked to supply the 1.2 million gadgets. PHOTO/FILE. 

In Summary

• Haier, which was ranked third among the final bidders, has written to the ministry seeking clarification on value added offers which it claims could have given its competitors undue advantage.
• Olive from India was the lowest bidder.
• Hewlett Packard (HP) quoted Sh23 billion while Haier quoted Sh24 billion.
• Training of 60,000 teachers who will teach pupils how to use the gadgets is about to be completed.

By ISAAC ONGIRI
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Uncertainty has hit the Sh24 billion laptops tender after one of the three shortlisted companies questioned the process ahead of a crucial decision by the Education Ministry on which firm will be picked to supply the 1.2 million gadgets.

A Chinese company, Haier, which was ranked third among the final bidders, has written to the ministry seeking clarification on value added offers which it claims could have given its competitors undue advantage.

During the bidding, the company with the lowest offer quoted Sh22 billion for the supply of the gadgets which Jubilee Coalition leaders had pledged to give free of charge to pupils joining Standard One in public primary schools this year.

Olive from India was the lowest bidder.

It quoted Sh22 billion which included the supply of 20,000 laptops for teachers.

Hewlett Packard (HP) quoted Sh23 billion while Haier quoted Sh24 billion.

VALUE ADDITIONS

“During the negotiation held on December 10 it was made clear to all bidders that all free or value additions were to be compiled in an annex and given values.

These values were then to be considered in the total cost of ownership,” read part of letter written by Mr He Qiwang, Haier’s director of projects, who is seeking clarification on the process.

“We humbly request that you provide us with details of how this is/has been done and what the total cost of ownership is per unit for each bidder.”

The letter dated December 18 and copied to the managing director of the Public Procurement Oversight Authority has, however, been dispensed with, according to a top official at the ministry who said they had answered Mr Qiwang.

It would appear that the ministry’s letter was delayed because on December 23 Mr Qiwang wrote a reminder to the ministry in which he said: “We write specifically in relation to the above and in relation to our letter dated December 18, 2013 to which we are still awaiting a response.

A copy of this letter is attached herewith for your reference and action.

”

A government official, who cannot be quoted due to the sensitivity of the project, yesterday said: “We have offered our response to Haier and we believe they are now satisfied. As at now we want this process to move forward so that the project can be launched.”

The Nation later established that Mr Qiwang was on his way to Kenya to follow up on his correspondence with the ministry regarding the tender.

The government intends to complete the delayed procurement next week ahead of supply of the gadgets expected by the end of February 2014.

DISMISSED CLAIMS

Thursday, Olive Holdings dismissed claims that it was incapable of handling the tender.

HP also issued a statement from its London office dismissing queries about its capability to deliver the laptop project.

The firm said it has a long-standing commitment in Kenya and was ready to roll out the project if picked to do so.

The principal director of the company, Mr Arun Khanna, said that the tender documents the company supplied provide adequate security for the government.

Mr Khanna, who spoke to the Nation on phone from New Delhi said his company had met all the requirements to deliver on the project.

“Our capability will speak for itself.

Furthermore, the winner is expected to place a $25 million (Sh2.1 billion) bond when the contract is signed and collect the deposit only after the delivery of properly assessed goods,” Mr Khanna said.

According to him, his firm had handled similar or bigger projects.

“We are very sure of what we are doing and we have offered our samples for evaluation, which competed very well with our rivals.

”

LIQUIDITY QUESTIONED

HP’s liquidity had also been questioned following announcements from its headquarters that it would lay off over 5,000 of its staff due to drop in revenue.

But last evening, HP issued a statement from its London office dismissing queries about its capability to deliver the laptop project.

The firm said it has a long –standing commitment in Kenya and was ready to roll out the laptop project is picked to do so.

The first supplies of about 350,000 laptops expected at the end of February are expected to be distributed to selected Schools in all the 47 counties to run a pilot project. The rest are expected to have been delivered by mid 2014.

Training of 60,000 teachers who will teach pupils how to use the gadgets is about to be completed.

At least 700 teachers from Nairobi have already been trained and issued with certificates.