Gov’t agency releases statement on ‘questionable’ contract award

JACDEN Enterprise Limited is questioning in its missive to the country’s apex anticorruption body that there seemingly is a degree of prejudice against them after submitting the lowest bid for janitorial and portering contract for Kingston Public and Victoria Jubilee hospitals, but was overlooked.

However, the state agency with oversight responsibility for all health facilities in the parishes of St Thomas, St Catherine, Kingston and St Andrew, stated that contracts are not awarded purely on the basis of offering the cheapest rate.

In a statement SERHA said: “The South East Regional Health Authority (SERHA) wishes to address recent discussions surrounding the procurement process related to the janitorial and portering contracts for the Spanish Town, Kingston Public, and Victoria Jubilee Hospitals.

“Although JACDEN Enterprise Ltd submitted the lowest bid, a thorough assessment and evaluation were conducted with optimization in mind, in accordance with the directives of the Public Procurement Commission (PPC) and SERHA’s risk assessment and bid instructions to award one lot per bidder. Awarding JACDEN Enterprise the contracts for Kingston Public and Victoria Jubilee Hospitals, instead of Spanish Town Hospital, would result in costs exceeding $300 million. In contrast, awarding JACDEN Enterprise the Spanish Town Hospital contract and the Kingston Public and Victoria Jubilee Hospitals contracts to the competing bidder would generate savings of $300 million.

“This optimization analysis demonstrates that awarding contracts based solely on the lowest bid does not always guarantee the best value for money. At all times, SERHA is committed to ensuring that the best value for money is achieved, and this principle has been upheld throughout the evaluation process.

“SERHA stands firmly behind its recommendation and awaits the final approval from the PPC regarding this matter. As a government entity committed to the principles of good governance, SERHA fully welcomes any investigation into the procurement process by the relevant authorities. We are confident that due diligence was exercised in all aspects of the evaluation process, ensuring transparency and fairness in our recommendations.”