By ALLAN ODHIAMBO, aodhiambo@ke.nationmedia.com
In Summary
- The Public Procurement Oversight Authority (PPOA) says KAA failed fairness test in award of contract.
The search for a fast-food operator at the Jomo
Kenyatta International Airport has run into tendering headwinds after
the port manager was stopped from awarding the contract to a Kenyan
firm.
The Public Procurement Oversight Authority (PPOA)
said the Kenya Airports Authority (KAA) erred in awarding the tender to
Barintown Ltd, which runs the Hurlingham-based Slims Restaurants in
Nairobi.
“The action of the procuring entity’s evaluation
committee failed the test of promoting competition and ensuring that
competitors are treated fairly in accordance with Section 2(b) of the
Act (Public Procurement),” the PPOA review board said in an assessment.
The freeze of the fast-food contract was prompted
by a complaint from Liberty Eagle Kenya Ltd, which owns the local
franchise of top US-based fast food chain, Subways.
It complained that Slims restaurant did not meet
the threshold of having international reputation and that KAA delayed
the release of the award of the tender, making it difficult for Subway
to appeal within the provided seven-day window.
The applicant said that KAA breached regulation
66(2) of the public procurement by delaying the release of information
on the outcome of the tender which placed its right to appeal at risk
because of the seven-day window provided for entities that are not
satisfied with award decisions.
Liberty Eagle said KAA emailed a notification on
April 16 despite the award letter having been dated April 9. Subway also
protested its exclusion from the tender after providing a bank
statement that did not bear the name of the account holder, which KAA
say made it difficult to establish the bidder’s financial ability.
PPOA ordered the award of the tender to Braitown be cancelled and the bids re-evaluated by May 30.
KAA issued the tender in January for the
development and management of an international brand fast food outlet at
JKIA’s new Unit 4, expected to be opened in July.
“Kenya Airports Authority wishes to engage an
internationally reputable firm with experience in operating an
international brand fast food outlet, to manage a similar facility at
the new terminal Unit 4,” read the tender notice.
Liberty Eagle indicated in bid papers that it has
41,000 fast food outlets in 104 countries and offered to run the
restaurant at JKIA at an annual concession rate of 10 per cent.
The Unit 4 is the extension of the exiting airport
and is expected to handle 2.5 million passengers that will ease
congestion at the East Africa’s main air travel hub.
The airport was built in the 1970s to handle 2.5
million passengers annually and has been struggling to handle more than
six million people a year as its regional importance grew.
This has seen KAA race to host facilities like
hotels at the airport that will offer comfort to foreigners and local
travellers who have developed an appetite for Western brands.
The KAA tender team had on March 27, recommended
that the contract be awarded to Barintown Ltd Group after it beat six
other bidders with a score of 98.30 points
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