‪Housing Development On The Spot For Favoring a Bidder in a Sh2.1B Affordable Housing Tender‬

The State Department for Housing and Urban Development faces criticism for allegedly favoring one bidder in a Sh2.1 billion tender for affordable housing construction in Loitoktok, Kajiado County.

The Public Procurement Administrative Review Board (PPARB) found that the department overlooked errors and alterations in the tender documents submitted by Jasir Contractors Limited, the winning bidder, while disqualifying Jijenge Precast & Construction Limited for similar issues.

“Why was Jasir Contractors awarded the tender despite glaring errors in its documents, while Jijenge was disqualified for comparable discrepancies?” questioned PPARB chair Joshua Kiptoo.

The board noted that Jasir’s bid contained multiple inconsistencies, including omissions, alterations, and variable unit rates in its Bill of Quantities (BoQ). In contrast, Jijenge was disqualified for modifications and inconsistencies in its BoQ, which the board deemed less severe.

Consequently, PPARB nullified the department’s intent to award the contract to Jasir and ordered a re-evaluation of Jijenge’s bid within 21 days, considering the board’s findings. The tender involves constructing 1,000 housing units and associated infrastructure in Loitoktok, Kajiado South Constituency.

Jasir emerged as the lowest bidder, quoting Sh2.1 billion, while Jijenge’s bid was Sh60 million higher. The board emphasized that completeness of the BoQ without alterations was a key evaluation criterion, yet the evaluation committee failed to justify overlooking Jasir’s errors while penalizing Jijenge.

“Not every error warrants disqualification,” the board stated. “Only errors affecting the substance of a tender should lead to exclusion. Jijenge’s errors did not alter the tender’s substance.” The board noted Jijenge’s strong performance in earlier evaluation stages.

PPARB criticized the evaluation committee for breaching principles of fairness, transparency, and equal treatment enshrined in the Public Procurement and Asset Disposal Act, 2015. “The Act mandates uniform application of criteria and fair treatment of all bidders,” the board ruled.

Other bidders, including Landmark Holdings Limited, Frontier Engineering Limited, and Parkland Construction Limited, were disqualified during the financial evaluation stage.

The State Department defended its decision, asserting it adhered strictly to the tender’s evaluation criteria. It argued that Jijenge’s disqualification stemmed from non-compliance with BoQ completeness requirements and denied any bias in its assessment.

However, PPARB highlighted that Jasir’s BoQ contained discrepancies, such as differing rates for the same line item across pages, violating financial evaluation standards. The board concluded that the department’s inconsistent treatment gave Jasir an unfair advantage.