[kictanet] HP says laptop bid price changed to favour rival Olive

Wed Feb 19 12:08:50 EAT 2014

Mark,

Maybe Ngigi needs to explain to you how building online systems falls under
manufacturing (code)

:)

Building manufacturing capabilities and datacenters, in sub Saharan Africa,
where the population (and social challenges) double every 20 years...  is a
no brainer.

Murigi / Stanley Muraya
On Feb 19, 2014 10:53 AM, "Mark Mwangi" <mwangy at gmail.com> wrote:

> I am with Nelson on this.
>
> We are running around in circles not getting anything done. What do we
> want? As much tech in our childrens hands to experiment and learn with or
> factories to put them to work. As far as I can tell there will be jobs in
> 10 years that don't exist today. Do we want our kids competing with robots
> or to be doing these new jobs?
>
> What worked for Asia will not work here. Another case of transplanting
> models that will fail. Queue Airtel.
>
> What we need are the basics like Dr. Ndemo ensuring we have several fiber
> cables landing at Mombasa regardless of who owns them. Thats a matter for
> the NIS to worry about. Can I register my company online? or follow
> progress of a case I have an interest in online? Wy d we queue to pay
> taxes? Why does ID fingerprinting use ink? What happened to the Biometric
> machines? Why do MPS still vote by stomping their feet?
>
> Factories are nice but they need an ecosystem to thrive, an ecosystem that
> doesn't work as it should right now.
>
> Its another case of broken mirror symptom. If the environment isn't
> healthy, the individuals(company, people, institutions) will be encouraged
> to perpetuate the status.
>
>
>
> On Wed, Feb 19, 2014 at 9:25 AM, S.M. Muraya <murigi.muraya at gmail.com>wrote:
>
>> If Asians listened to Western doubts about their prospects and potential,
>> they would not have the manufacturing capabilities they do today.
>>
>> China imports raw materials from Africa, and like them, we should not
>> give our children a chance to learn to transform these into other products?
>>
>> First we build labs (mini factories) then...
>>  On Feb 19, 2014 9:00 AM, "Adam Nelson" <adam at varud.com> wrote:
>>
>>> Keep in mind though that supporting industry and helping kids with a
>>> final product are two independent things.  The more money that goes into
>>> spinning up a manufacturing capacity, the less money that goes into getting
>>> the technology to the kids.  Kenya can't magically produce laptops cheaper
>>> than China can.
>>>
>>> Kenya has no chance of having a meaningful laptop assembly capacity
>>> because it doesn't have the economies of scale that South East Asia has.
>>>  Europe and the US are giving lots of technology to their children and none
>>> of that stuff is produced in-country because manufacturing plants can't
>>> exist in isolation.
>>>
>>> A laptop assembly plant is just one of dozens of plants (chemical
>>> manufacturing, plastic-shaping, aluminum foundries, LED, etc...) needed in
>>> close proximity to eachother just to create the first laptop.  Having a
>>> laptop assembly plant in Kenya and all the preceding plants stay in China
>>> isn't economically viable.  And also, if the plant is only creating a few
>>> million laptops, it's doubly not viable.  It has to produce more like
>>> 10M/year and in order to do that and so the plants would need to export
>>> those laptops.  Where are these laptops going to be exported to and how?
>>>  Is a typical Rwandan going to buy a Kenyan laptop over a Chinese one?
>>>  Maybe, just maybe, with a solid $5-$10B of pure investment Kenya could get
>>> a real industry going but then to what end?  Computer manufacturing has
>>> already plateaued (currently one computer produced for every 20 people each
>>> year) and it's agreed that future growth will happen in tablets and mobiles
>>> where most of the value is in commodities and intellectual property, not
>>> assembly line labor.  Tablet sales are already 60% of computer sales and
>>> the industry is seeing 50% YoY growth.
>>>
>>> Kenya has all the raw ingredients to leapfrog manufacturing and go
>>> straight to a knowledge economy - it just needs to invest deeply in its
>>> children through strong, universal education.  Having young people working
>>> on assembly lines is not a way to empower youth.
>>>
>>>
>>>
>>> --
>>> Kili - Cloud for Africa: kili.io
>>> Musings: twitter.com/varud <https://twitter.com/varud>
>>> More Musings: varud.com
>>> About Adam: www.linkedin.com/in/adamcnelson
>>>
>>>
>>> On Tue, Feb 18, 2014 at 10:12 PM, S.M. Muraya <murigi.muraya at gmail.com>wrote:
>>>
>>>> They are taking electricity to thousands of schools to make this
>>>> project work.
>>>>
>>>>
>>>> http://mobile.nation.co.ke/News/Electricity+and+stores+pledge+in+laptops+plan/-/1950946/1978754/-/format/xhtml/-/adm3ge/-/index.html
>>>>
>>>> Have noted in the past, the ecosystem effects are significant, even if
>>>> the laptops fail to increase interactive learning.
>>>>
>>>> The power of Go.Ke to demand electronic assembling plants has also
>>>> significantly increased.
>>>>
>>>> Regards
>>>>
>>>> Murigi / Stanley Muraya
>>>>
>>>> *"Better a patient person than a warrior, one with self-control than
>>>> one who takes a city." Prov 16:32*
>>>>
>>>>
>>>> On Tue, Feb 18, 2014 at 8:24 PM, Sean Moroney <seanm at aitecafrica.com>wrote:
>>>>
>>>>>  Here, here, Adam.
>>>>>
>>>>>
>>>>>
>>>>> The entire project is garbage, from beginning to end, but
>>>>> unfortunately rational thought and action are not given priority in
>>>>> politics.
>>>>>
>>>>>
>>>>>
>>>>> Imagine what could have been achieved if the laptop budget had been
>>>>> allocated to capacity building for teachers, and developing secure
>>>>> solar-powered computer labs for all school years to use.
>>>>>
>>>>>
>>>>>
>>>>> Sean Moroney
>>>>> *Chairman*
>>>>> *AITEC Africa*
>>>>> seanm at aitecafrica.com
>>>>> UK Tel: +44(0)1480-880774
>>>>> UK Fax: +44(0)1480-880765
>>>>> UK Mobile: +44(0)7973-499224
>>>>>
>>>>> *Ghana Mobile: +233(0)57-0445059 <%2B233%280%2957-0445059>*
>>>>>
>>>>> *Kenya Mobile: +254(0)721-845674 <%2B254%280%29721-845674>*
>>>>>
>>>>> *Mozambique Mobile: +258-820880583 <%2B258-820880583>*
>>>>>
>>>>> *Nigeria Mobile +234(0)701-196-1413 <%2B234%280%29701-196-1413>*
>>>>> Skype: seanmoroney
>>>>> www.aitecafrica.com <http://aitecafrica.com/>
>>>>>
>>>>> [image: cid:image005.jpg at 01CEB2F3.0495DB50]<http://aitecafrica.com/event/view/95>
>>>>>
>>>>>
>>>>>
>>>>> [image: twitter] <https://twitter.com/aitecafrica> [image: facebook
>>>>> (2)]<https://www.facebook.com/pages/Aitec-Africa/143207745706922?ref=ts&fref=ts>
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>>>>>
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>>>>>
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>>>>>
>>>>> AITEC Africa is the trading name of AITEC Conferences Limited
>>>>> registered in England and Wales.Company registration number: 4698475
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>>>>>
>>>>>
>>>>>
>>>>>
>>>>> *From:* kictanet [mailto:kictanet-bounces+seanm=
>>>>> aitecafrica.com at lists.kictanet.or.ke] *On Behalf Of *Adam Nelson
>>>>> *Sent:* 18 February 2014 15:00
>>>>> *To:* Sean Moroney
>>>>> *Cc:* KICTAnet ICT Policy Discussions
>>>>> *Subject:* Re: [kictanet] HP says laptop bid price changed to favour
>>>>> rival Olive
>>>>>
>>>>>
>>>>>
>>>>> We're ignoring the elephant in the room.  Both vendor's laptops are
>>>>> going to be garbage.
>>>>>
>>>>>
>>>>>
>>>>> With that kind of budget, tablets are the only way to go.   Anyway,
>>>>> tablets are so much more sensible from a pedagogical point of view as well
>>>>> as a battery life (10 hours vs 1) and durability standpoint (you can drop a
>>>>> tablet on a cement floor from 2 feet and the screen might crack but it can
>>>>> be taped up and works fine).
>>>>>
>>>>>
>>>>>
>>>>> Even Apple iPads are only $300 retail nowadays and surely the
>>>>> government could get them for $200 or even $150 since Apple's CSR team
>>>>> would be all over themselves to make the sale.  No ICT support would be
>>>>> required and everything would 'just work' as long as the theft and breakage
>>>>> rate is kept reasonable.
>>>>>
>>>>>
>>>>>
>>>>> If anybody in the government could do anything innovative with this
>>>>> thing, it would catapult their career to the national and international
>>>>> stage.
>>>>>
>>>>>
>>>>>    --
>>>>>
>>>>> Kili - Cloud for Africa: kili.io
>>>>>
>>>>> Musings: twitter.com/varud <https://twitter.com/varud>
>>>>>
>>>>> More Musings: varud.com
>>>>>
>>>>> About Adam: www.linkedin.com/in/adamcnelson
>>>>>
>>>>>
>>>>>
>>>>> On Tue, Feb 18, 2014 at 5:36 PM, Ngigi Waithaka <ngigi at at.co.ke>
>>>>> wrote:
>>>>>
>>>>> If this line is true,
>>>>>
>>>>> "*...The technology firm further says it was invited through a letter
>>>>> dated December 6, but which was delivered on the morning of negotiations,
>>>>> allowing them no time to prepare...*."
>>>>>
>>>>> Then you know HP is being played for sucker, and I think they are....
>>>>>
>>>>> The only option on the table, prepare themselves for a Judicial Review
>>>>> (Takes about a year to conclude), PPARB decisions IMO are not based on
>>>>> substance, and if they are, its of a different kind!
>>>>>
>>>>> Waithaka Ngigi
>>>>>
>>>>>
>>>>>
>>>>> On Tue, Feb 18, 2014 at 5:21 PM, S.M. Muraya <murigi.muraya at gmail.com>
>>>>> wrote:
>>>>>
>>>>>  What did Olive Telcom offer in terms of local assembly/support,
>>>>> maintenance and connectivity?
>>>>>
>>>>>
>>>>> http://www.businessdailyafrica.com/HP-says-tender-team-rigged-pricing-of-laptops-for-rival/-/539546/2210772/-/view/printVersion/-/4t0eatz/-/index.html
>>>>>
>>>>> HP says laptop bid price changed to favour rival Olive
>>>>>
>>>>> IN SUMMARY
>>>>>
>>>>>   * HP says Olive Telecommunications had on December 13 quoted a price
>>>>> of Sh23.1 billion as its final offer.
>>>>>
>>>>>   * Computer maker also claims Olive and Haier are associates that
>>>>> should not have been allowed to place separate bids.
>>>>>
>>>>>   * The allegations add to the controversy that has stalked
>>>>> procurement of laptops for primary schools.
>>>>>
>>>>> Senior government officials colluded with executives of an Indian
>>>>> company to inflate prices for the controversial laptops tender by as much
>>>>> as Sh1.4 billion after the final bids were made, it has emerged.
>>>>>
>>>>> American computer maker Hewlett Packard (HP) says Olive
>>>>> Telecommunications -- the Indian company that won the tender to supply the
>>>>> laptops -- had on December 13 quoted a price of Sh23.1 billion ($268,899,
>>>>> 669) as its final offer.
>>>>>
>>>>> But Education secretary Jacob Kaimenyi later announced that Olive
>>>>> Telecommunications had won the tender to supply the laptops at a price of
>>>>> 24.5 billion ($284,814,957) without reference to the alterations.
>>>>>
>>>>> "It is clear from the foregoing that the procuring entity amended the
>>>>> total price quoted by the successful bidder and which was read out at the
>>>>> opening of BAFO (Best and Final Offer) and awarded it (Olive) the sum of
>>>>> $15,914,288 (Sh1.4 billion) more than it had actually quoted," says HP in
>>>>> documents filed Thursday before the Public Procurement Administrative
>>>>> Review Board (PPARB).
>>>>>
>>>>> HP also alleges that Olive and rival bidder Haier, which was among the
>>>>> three shortlisted bidders for the supply of 1.3 million laptops, are
>>>>> related companies that should never have been allowed to submit competing
>>>>> bids meant to lock out rivals.
>>>>>
>>>>> According to HP, the tender committee should have disqualified Olive
>>>>> and Haier Group's applications on grounds that the two companies are
>>>>> related and could not place separate bids.
>>>>>
>>>>> "To the procuring entity's knowledge the said two companies had
>>>>> previously entered into a joint venture to form Haier Telkom (India), a
>>>>> company that is still active," says HP.
>>>>>
>>>>> The allegations add to the controversy that has stalked procurement of
>>>>> laptops for primary schools.
>>>>>
>>>>> HP accuses the tender committee of colluding with Olive Communications
>>>>> to undermine rival bidders.
>>>>>
>>>>> The American firm claims that Ministry of Education officials allowed
>>>>> Olive to submit an incomplete price list that left room for price
>>>>> manipulation and enabled the Indian firm to overtake it [HP] as the lowest
>>>>> bidder.
>>>>>
>>>>> In an application filed through Nairobi law firm Iseme Kamau and Maema
>>>>> Advocates, HP says procurement of the laptops has been shrouded in secrecy
>>>>> that has irredeemably compromised the award.
>>>>>
>>>>> HP accuses the tender evaluation committee of disclosing the price
>>>>> quoted by the bidders and in effect allowing price comparison and
>>>>> undercutting -- a claim that if proved will cast doubt on the entire process.
>>>>>
>>>>> The American company says it was the lowest bidder when the financial
>>>>> offers were opened on December 6, having offered to supply the 1.28 million
>>>>> laptops for Sh25 billion compared to Haier Electrical's Sh27.2 billion and
>>>>> Olive Communications' Sh27.2 billion.
>>>>>
>>>>> All prices were subject to further negotiations.
>>>>>
>>>>> HP claims that the tender committee used every opportunity to release
>>>>> confidential information in the bid documents to competing firms it says
>>>>> were sister companies used to undercut its offer.
>>>>>
>>>>> "Release of the said information created the very mischief sought to
>>>>> be prevented by Section 44 of the (Public Procurement and disposal) Act,"
>>>>> HP says, adding that rival bidders used the unit prices to undercut the
>>>>> applicant.
>>>>>
>>>>> Meyrin Branch, who oversees HP's corporate accounts, says in an
>>>>> affidavit that only his company's application should have been subjected to
>>>>> further evaluation, including price negotiations, and that the tender
>>>>> committee should only have engaged rival bidders in the event that the
>>>>> talks collapsed.
>>>>>
>>>>> Instead, the tender committee invited all bidders to price
>>>>> negotiations on December 10 at Windsor Golf Club against HP's expectation.
>>>>>
>>>>> The technology firm further says it was invited through a letter dated
>>>>> December 6, but which was delivered on the morning of negotiations,
>>>>> allowing them no time to prepare.
>>>>>
>>>>> Each firm held separate negotiations with the tender committee during
>>>>> which they were asked to reveal their BAFO.
>>>>>
>>>>> "The mode of negotiation adopted made it very possible for information
>>>>> of a particular bidder to be disclosed to others with the aim of sabotaging
>>>>> certain bidders," says HP.
>>>>>
>>>>> Ministry of Education officials are alleged to have failed to define
>>>>> the scope of negotiations to participating bidders and instead confronted
>>>>> them with questions at the meeting.
>>>>>
>>>>> The tender committee is also accused of refusing to supply HP with the
>>>>> minutes of the negotiations or even a summary of what transpired.
>>>>>
>>>>> The information was needed for purposes of filing the appeal.
>>>>>
>>>>> HP later learnt on December 13 that following the price negotiations,
>>>>> Olive had dislodged it from top position with an offer of Sh23.1 billion, a
>>>>> reduction of Sh4.1 billion from its initial offer of Sh27.2 billion.
>>>>>
>>>>> The American computer maker was then left in the second lowest
>>>>> bidder's position with a price of Sh24.8 billion while Haier was last with
>>>>> a final offer of Sh25 billion.
>>>>>
>>>>> "It was therefore surprising when on February 7, 2014... Prof Jacob
>>>>> Kaimenyi announced that Olive Telecommunication had been awarded the tender
>>>>> at Sh24.6 billion," says HP.
>>>>>
>>>>> HP also claims that the committee declined to consider its offer to
>>>>> provide value-added services to the tune of Sh4.4 billion free of charge.
>>>>>
>>>>> It says the tender committee should have disqualified Olive and Haier
>>>>> Group's application on grounds that the two companies are related and
>>>>> should not have placed separate bids.
>>>>>
>>>>> The details emerged even as the parliamentary committee investigating
>>>>> the laptops for schools tender called on the government to suspend signing
>>>>> of the contract.
>>>>>
>>>>> The MPs argued that Olive is a small company that partnered with
>>>>> another firm called CMC to tender for the laptop and that it is not an
>>>>> original equipment manufacturer (OEM).
>>>>>
>>>>> The MPs' claims give credence to HP's argument that the committee
>>>>> breached one of the requirements that limited bidding to OEMs.
>>>>>
>>>>> The parliamentary committee has accused Prof Kaimenyi of awarding the
>>>>> tender even before the due diligence report on the winning company is
>>>>> scrutinised.
>>>>>
>>>>> MPs are expected to independently investigate the matter and produce a
>>>>> report.
>>>>>
>>>>> Ministry of Education officials are also accused of rejecting HP's bid
>>>>> for the supply of projectors on grounds that it is not an OEM for
>>>>> projectors even as it accepted Olive's bid for laptops.
>>>>>
>>>>> "Since the requirement that bidders must be OEMs was specifically set
>>>>> out in the tender documents, HP accepted the decision (to reject its bid
>>>>> for projectors) and reasonably expected that similar criteria would be used
>>>>> in respect of other bidders," HP says.
>>>>>
>>>>> The government in October re-advertised for the supply of laptops,
>>>>> printers and projectors to public schools in fulfilment of Jubilee
>>>>> alliance's campaign manifesto.
>>>>>
>>>>>
>>>>>
>>>>> _______________________________________________
>>>>> kictanet mailing list
>>>>> kictanet at lists.kictanet.or.ke
>>>>> https://lists.kictanet.or.ke/mailman/listinfo/kictanet
>>>>>
>>>>> Unsubscribe or change your options at
>>>>> https://lists.kictanet.or.ke/mailman/options/kictanet/ngigi%40at.co.ke
>>>>>
>>>>> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder
>>>>> platform for people and institutions interested and involved in ICT policy
>>>>> and regulation. The network aims to act as a catalyst for reform in the ICT
>>>>> sector in support of the national aim of ICT enabled growth and development.
>>>>>
>>>>> KICTANetiquette : Adhere to the same standards of acceptable behaviors
>>>>> online that you follow in real life: respect people's times and bandwidth,
>>>>> share knowledge, don't flame or abuse or personalize, respect privacy, do
>>>>> not spam, do not market your wares or qualifications.
>>>>>
>>>>>
>>>>>
>>>>>
>>>>> --
>>>>>
>>>>> *Regards,*
>>>>>
>>>>>
>>>>>
>>>>> *Wait**haka Ngigi*
>>>>>
>>>>> Chief Executive Officer | Alliance Technologies | MCK Nairobi Synod
>>>>> Building
>>>>>
>>>>> T + 254 (0) 20 2333 471 |Office Mobile: +254 786 28 28 28 | M + 254
>>>>> 737 811 000
>>>>>
>>>>> www.at.co.ke
>>>>>
>>>>>
>>>>>
>>>>>
>>>>> _______________________________________________
>>>>> kictanet mailing list
>>>>> kictanet at lists.kictanet.or.ke
>>>>> https://lists.kictanet.or.ke/mailman/listinfo/kictanet
>>>>>
>>>>> Unsubscribe or change your options at
>>>>> https://lists.kictanet.or.ke/mailman/options/kictanet/adam%40varud.com
>>>>>
>>>>> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder
>>>>> platform for people and institutions interested and involved in ICT policy
>>>>> and regulation. The network aims to act as a catalyst for reform in the ICT
>>>>> sector in support of the national aim of ICT enabled growth and development.
>>>>>
>>>>> KICTANetiquette : Adhere to the same standards of acceptable behaviors
>>>>> online that you follow in real life: respect people's times and bandwidth,
>>>>> share knowledge, don't flame or abuse or personalize, respect privacy, do
>>>>> not spam, do not market your wares or qualifications.
>>>>>
>>>>>
>>>>>
>>>>> _______________________________________________
>>>>> kictanet mailing list
>>>>> kictanet at lists.kictanet.or.ke
>>>>> https://lists.kictanet.or.ke/mailman/listinfo/kictanet
>>>>>
>>>>> Unsubscribe or change your options at
>>>>> https://lists.kictanet.or.ke/mailman/options/kictanet/murigi.muraya%40gmail.com
>>>>>
>>>>>
>>>>> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder
>>>>> platform for people and institutions interested and involved in ICT policy
>>>>> and regulation. The network aims to act as a catalyst for reform in the ICT
>>>>> sector in support of the national aim of ICT enabled growth and development.
>>>>>
>>>>> KICTANetiquette : Adhere to the same standards of acceptable behaviors
>>>>> online that you follow in real life: respect people's times and bandwidth,
>>>>> share knowledge, don't flame or abuse or personalize, respect privacy, do
>>>>> not spam, do not market your wares or qualifications.
>>>>>
>>>>
>>>>
>>>> _______________________________________________
>>>> kictanet mailing list
>>>> kictanet at lists.kictanet.or.ke
>>>> https://lists.kictanet.or.ke/mailman/listinfo/kictanet
>>>>
>>>> Unsubscribe or change your options at
>>>> https://lists.kictanet.or.ke/mailman/options/kictanet/adam%40varud.com
>>>>
>>>> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
>>>> for people and institutions interested and involved in ICT policy and
>>>> regulation. The network aims to act as a catalyst for reform in the ICT
>>>> sector in support of the national aim of ICT enabled growth and development.
>>>>
>>>> KICTANetiquette : Adhere to the same standards of acceptable behaviors
>>>> online that you follow in real life: respect people's times and bandwidth,
>>>> share knowledge, don't flame or abuse or personalize, respect privacy, do
>>>> not spam, do not market your wares or qualifications.
>>>>
>>>
>>>
>> _______________________________________________
>> kictanet mailing list
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>>
>> Unsubscribe or change your options at
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>>
>> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
>> for people and institutions interested and involved in ICT policy and
>> regulation. The network aims to act as a catalyst for reform in the ICT
>> sector in support of the national aim of ICT enabled growth and development.
>>
>> KICTANetiquette : Adhere to the same standards of acceptable behaviors
>> online that you follow in real life: respect people's times and bandwidth,
>> share knowledge, don't flame or abuse or personalize, respect privacy, do
>> not spam, do not market your wares or qualifications.
>>
>
>
>
> --
> Regards,
>
> Mark Mwangi
>
> markmwangi.me.ke
>
>
>
>
>
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