OCG cites lack of procurement planning on the part of the JFB

Durrant Pate/Contributor

The Integrity Commission of Jamaica has found administrative bungling regarding the award of contracts by the Jamaica Fire Brigade (JFB) to Rosenbauer Minnesota LLC for the provision of Rosenbauer fire trucks (Pumpers) through its local agent, National Safety Limited.

The findings follow an investigation carried out by the Office of the Contractor General (OCG) into the procurement processes which led to the award of contracts by the JFB for the provision of Rosenbauer fire trucks. The OCG was subsumed into the Integrity Commission over two years ago.

The OCG’s decision to commence a formal investigation into the matter was initiated by the OCG upon receipt of a complaint dated January 12, 2015, with the complainant being treated as anonymous to protect his/her identity.

The letter of complaint asserted that Rosenbauer Minnesota LLC was awarded two contracts by the JFB by way of the sole source procurement methodology, notwithstanding the existence of other suppliers in the market and that, in 2012, the JFB invited bidders to bid for the supply of fire units.

Allegations by undisclosed complainant

The complainant questioned the suitability of the Rosenbauer fire trucks, saying the Renault fire trucks were best suited for Jamaica, in that they are smaller and more powerful and alleged that his/her company was never asked to submit an offer, neither were it informed of the invitation to bid for the referenced procurement opportunities.

It was further alleged that the quoted price for the Rosenbauer Minnesota fire units was US$460,000 per unit, a figure which was alleged to be extremely uncompetitive, due to the assertion that the Renault fire units would cost approximately US$350,000 per unit. However, during its investigation, the OCG findings didn’t corroborate the allegations but brought to the fore some administrative issues.

In its 54-page report, which was tabled in parliament yesterday, the OCG found evidence to indicate that two contracts were awarded to Rosenbauer through National Safety Limited in 2013 and 2015 by way of the Direct Contracting Procurement Methodology.

The OCG found, “the then Accounting and Accountable officers of the JFB breached Sections 29(a) and (b)(ii) of the Contractor-General Act, as a result of their failure to submit the requisite Quarterly Contract Awards (QCA) reports to the OCG, advising of the award of two contracts to Rosenbauer Minnesota in the amounts of US$1,355,283 and US$1,359,591, respectively, for the referenced periods”.

Summary of Key Findings

The investigation found that a tender process was initiated by the JFB for the procurement of three fire trucks in 2012. The proposal submitted by the National Safety Limited, on behalf of the Rosenbauer Minnesota was the sole bid submitted in the amount of US$1,351,173 and JA$695,700.

The report stated that National Safety Limited advised that there were no contracts directly awarded to the entity. The OCG found that the JFB’s Procurement Committee recommended the award of the contract for the procurement of three fire trucks to the National Safety Limited for US$1,351,173.

Based on the minutes of a meeting held by the National Contracts Commission (NCC) on November 28, 2012, the NCC issued a directive to the JFB to abort the initiated tender process and enter into negotiations with the National Safety Limited. The Ministry of Local Government and Community Development assumed responsibility for the execution of the new contract relating to the procurement of the Rosenbauer fire trucks.

On February 20, 2013, the NCC endorsed the award of contract to Rosenbauer Minnesota and a contract was initiated on March 13, 2013 for the provision of three fire trucks for US$1,355,283. The JFB utilised the Direct Contracting Procurement Methodology for the procurement of the fire trucks.

On August 13, 2014, the NCC endorsed the recommendation for the award of contract to Rosenbauer Minnesota in the amount of US$1,412,325. A contract was entered into between the JFB and Rosenbauer Minnesota on January 29, 2015 for the procurement of three fire trucks at a total price of US$1,359,591.