[kictanet] [Fwd: [Fibre-for-africa] Kenya's fibre optic cable project queried]

[bitange at jambo.co.ke]

Dear Wakabi,
Thank you for raising the question on whether the Ministry ignored best
practices in procurement.  The answer is No.  There are three approved
methods of procurement, that is, open tender, selective tender and single
sourcing.  Open tender you have got to adverise and any interested party
can bid to supply service.  It is a lengthy procedure (takes a minimum 45
days).  It is the most competitive of all.  Logically it applies to goods
that can be obtained from many sources.

Selective tendering however, is mostly applied to a sitiation where the
popolation of the suppliers is limited as in Marine works.  There are two
companies, that is, Tyco and Alcatel that have the necesary experience to
do such jobs.  There are three other companies, that is, NEC, Fujistu and
Global Marine/Huaweii that are usually subcontracted by the larger two. 
They have limited experience compared to the big two.  Therefore it would
have been absolutely non sense and wasteful to advertise for the the works
in the local papers.

Single sourcing is used where there is only one supplier of service/good
or where there is an emergence.  The committee which is tasked with the
Teams project comprising the Investment Secretary, Director, Directorate
of Procurement, MD Telkom, Solocitor General, and CCK Director General
agreed to fast track the project by seeking authority from Treasury to
procure Detailed Feasibility Study (DFS), Detailed Technical Study (DTS),
and The Mirine Survey (MS)using the later methods and subjected Financial
Arrager (FA) tender to an open tender.

If you look at the overall project, the four services DFS, DTS, MS and FA
are crucial to determining the time the project takes.  Three of these
projects DFS, DTS, and FA are complete and once the MS is complete, it
would enable us to procure the supply contract with sufficient knowledge. 
Secoindly, whoever is awarded the contract, will actually immediately
procure the material since all the information is available.

The argument that the MS is given along with the Suply contract does not
hold water since there are many cable networks that have used the model. 
EASSY for example will not know the material requirement until the MS is
complete.  In technical terms they are several months behind Teams.

You must understand that there are several interested parties, some who
want to make quick bucks.  Ask yourself:  what is it they are seeing that
our people can't see?  Consider Germany cable operators bagging in more
that 6 billion euros in the last world cup in one month.  My friend we
need a serious talk.  Seriously, if I had my way, I would give the entire
works as a tunkey project.  By now we could be at least three months to
getting connected.


Regards


Bitange Ndemo.




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