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- 7 Marks
Question
Rabina Construction Ltd purchased Tender Document from Adagya District Assembly to tender for contracts advertised by the assembly. However, in the process of preparing to submit the tender, Adagya District Assembly cancelled the procurement process before the deadline for submission of the tender. Rabina Construction, therefore, feels disappointed since it has incurred some cost in trying to respond to the tender and intends to take legal action against the assembly. Rabina Construction is therefore seeking your opinion on whether the assembly has the right to such action.
Required:
i) Determine whether Adagya District Assembly has the right to cancel the procurement process when it is still in progress?
(1 mark)
ii) Explain FOUR (4) conditions under which such right could be exercised or otherwise.
(6 marks)
Answer
i) Right to Cancel the Procurement Process:
Yes, Adagya District Assembly has the right to cancel the Procurement Proceedings in accordance with Section 12(28 a) of the Public Procurement (Amendment) Act, 2016 (Act 914).
(1 mark)
ii) Conditions for Cancellation of Procurement Proceedings:
A Procurement Entity may, for specific and fully justified reasons, cancel Procurement Proceedings before the expiry of the deadline for the submission of tenders, where:
- Imperfection in Tender Documents: The entity discovers an imperfection in the wording of the request for submission of tenders, which could mislead tenderers.
- Decision to Execute Work Internally: The procurement entity decides to carry out the work subject of the tender by itself.
- Budget Cuts: There is a cut in the budget intended for performing the contract.
- No Bid Submission: No bid has been submitted.
- Exceptional Circumstances or Force Majeure: Exceptional circumstances or a force majeure render normal performance of the contract impossible.
- Change in Economic or Technical Data: The economic or technical data of the project has fundamentally changed.
(6 marks)
- Tags: Legal Rights, Procurement Process, Public Procurement Act, Tender
- Level: Level 2
- Topic: Public Procurement
- Series: NOV 2021
- Uploader: Theophilus