MULTAN, Nov 19: The firm, which had tendered the lowest bid to the Trading Corporation of Pakistan for the import of urea, has further cut its offer to $200 per ton with a pledge that it will start shipment of the consignment within 10 days of confirmation of the contract.
In a communication to the authorities in finance, commerce and agriculture ministries, the managing director of the Lab Link Enterprises says if the TCP is assuming their firm incapable to supply urea in required quantity then they are ready to deposit a cash security of Rs20 million while their principal Rodan United Group of Dubai will submit a performance bond worth 2 per cent of total invoice value within four days of the issuance of the contract.
The firm further offers that it is ready to bear the expenses for inspection of its stocks in Russia and Ukraine by the government anytime for confirmation of quantity and quality.
The Lab Link had submitted the lowest bid of $234 per ton in the tenders which the Purchase and Price Evaluation Committee of the TCP had opened on Nov 8 last for the import of urea. Some 14 firms had sent tenders and offered bids ranged between $234 and $289 per ton.
The PPEC meeting presided over by TCP chairman Asif Zaman Ansari, however, discarded the lowest bids, which were ranging from $234 to $249, on the grounds that the “firm has not applied for pre-qualification; company profile is not convincing or doubtful; company is not a regular trader of urea and does not enjoy reputation as a urea supplier; and, the firm is defaulter with TCP in any previous tender.”
One of the bidders who had quoted $271.7 per ton was, as the TCP documents put it, convinced through negotiations to ‘rationalize’ his offer to $270.5 per ton. Four of the bidders who had quoted even higher rates were also asked to bring down their prices to $270.5 per ton. Consequently, the five firms were collectively awarded the contracts to import 300,000 tons of urea.
It my be mentioned that though the tenders were called for the import of 75,000 tons of urea, the PPEC awarded contracts for the import of 300,000 tons.
When contacted, a Lab Link spokesperson told Dawn that the firm could not be disqualified for any of the four reasons the TCP had cited while rejecting its bid.
He said that the firm had recently supplied 300,000 tons urea to Burma, it had applied for pre-qualification and that it had successfully transacted with the TCP in some other contracts.
He said the government could confiscate the surety and performance bonds in case the firm could not deliver. The government would have almost Rs150 million of the firm with it under the two heads on account of a contract of 300,000 tons of urea.
“As much as Rs1.269 billion of the national exchequer will be saved at our revised price of $200 per ton as against the price at which the TCP has awarded contracts for the import of 300,000 tons urea,” he added.