Minister and NTMA in court challenge over tender

A company involved in the public/private partnership sector has brought a High Court challenge over a decision to award a major contract to a firm which allegedly submitted its tender after the appointed deadline.

BAM PPP PGGM Infrastructure Coöperatie UA has brought its proceedings against the National Treasury Management Agency (NTMA) and the Minister for Education and Skills. The case has "real significance in cash terms", Mr Justice Max Barrett observed.

BAM PPP, an operating company of the Dutch Royal BAM Group, is involved in the building of roads, schools and other infrastructural projects. For this project, it was part of a joint venture with Dutch pension fund administrator PGGM.

The joint venture was one of three qualifying bidders for a Department of Education contract. The others were Eriguena and Kajima. Final tenders were to be submitted by 5pm on November 28th, 2014.

On February 27th last, BAM claims it was informed by the NTMA, which oversaw the process, Eriguena’s tender had been accepted – even though it says this was after the 5pm deadline. BAM says it was the only party to submit a completed tender by the deadline as it also learned Kajima failed to submit all its documentation in time.

Mr Justice Barrett, in ruling BAM was entitled to disclosure of documents, said among the key issues was whether the NTMA had discretion to accept late tenders. The NTMA had opposed the discovery order.