A company that lost out on a tender to construct a road and stormwater system in a Free State municipality plans to take legal action and is demanding an explanation why its bid was unsuccessful despite its lower pricing.
Lwasi Business Enterprise was a bidder for the construction of an internal access road and stormwater system in Mokwallo in Vredefort for the Ngwathe Local Municipality.
The company’s director, Justice Khambule, has written to the municipality to demand copies of the bid evaluation and adjudication reports for the tender. Khambule also seeks clarification on why his company, which offered to complete the project for R15-million, was overlooked in favour of Lebo Tebo Trading, whose bid came in at R19-million.
In his letter, Khambule asserted that Lwasi was better suited for the project as it met all the key criteria, including price, functionality and locality.
He highlighted that the tender award must be lawful, rational, and aligned with the principles of the Preferential Procurement Policy Framework Act and procurement laws, which govern the bidding process.
He demanded a written explanation, particularly why a local company with a lower price was overlooked.
“Should the municipality fail to provide the requested information and reasons within the stipulated period, Lwasi Business Enterprise will exercise its right to pursue legal recourse, including filling a review application or seeking to compel compliance.
“Given the ageing water supply infrastructure and the huge Eskom debt, I am so alarmed that the municipality considers paying R4 million extra for services that a local company could successfully deliver at a much reasonable price.”
Municipal manager Futhuli Mothamaha told Sunday World that the winning bidder met all the criteria outlined in the tender specifications.
He added that the tender committee thoroughly assessed each bid, with the final decision made based solely on compliance with established regulations.
“While we appreciate the role of local business, it is imperative to note that Lwasi Business Enterprise was disqualified from the tendering process due to insolvency and previous contract termination following unsatisfactory performance in a municipal pipeline construction project,” said Mothamaha.
“The termination has led to Lwasi Business Enterprise being blacklisted, rendering it ineligible for the current tender.”
While Lebo Tebo Trading’s bid was higher, he said it met the technical and quality standards needed to complete the project.
“The evaluation of all bids was conducted based on technical compliance, past performance, financial stability, and the ability to deliver a project of this scale and complexity.
“These criteria are consistently prioritised to ensure that service delivery standards are upheld,” said Mothamaha.
