Derek Achong
Senior Reporter
A security company has lost its bid to suspend a lucrative contract awarded to one of its rivals by the Estate Management and Business Company Ltd (EMBD).
Delivering a decision last week, a panel appointed by the Office of Procurement Regulation (OPR) refused the interim relief sought by Amalgamated Security Services pending the determination of its challenge over the procurement process used to award the contract to SWAT Estate Police Company Ltd.
The panel, chaired by Sparkle Kirk Selman, found that the suspension would interrupt essential security coverage for EMBD.
It also stated the Amalgamated would suffer little prejudice as their substantive challenge could be determined relatively quickly.
Between 2012 and 2026, Amalgamated performed security services for the central zone of the State company, which manages land formerly held by Caroni (1975) Ltd.
The company had a three-year contract between 2012 and 2015 but continued to provide its services on a month-to-month basis after it ended until being terminated last month.
The annual cost of the contract was $1.55 million.
The company claimed that when its services ended on June 30, SWAT’s officers immediately commenced duty.
It filed a challenge before the OPR raising several issues and inconsistencies with the procurement process employed by EMBD to retain SWAT.
The company claimed that EMBD failed to follow the open bidding provisions under the Public Procurement and Disposal of Property Act 2015. It also claimed that it was unlawfully excluded from participating in the process and that the EMBD did not properly announce that it had selected SWAT.
In defence of the challenge, EMBD, through its lawyers led by Anand Ramlogan of Freedom Law Chambers, claimed that it terminated its security contracts for all its regions after discovering performance issues and alleged breaches of contractual obligations.
It claimed that it utilised selective tendering and interim emergency procurement arrangements to maintain uninterrupted security services at facilities and locations under its control.
It also suggested that an open tender process would not have been practical due to the time required for such and the critical nature of the security services required.
It also pointed out that the contract awarded to SWAT was for under $1 million and fell under simplified procurement regulations.
In determining whether to suspend the contract, the panel agreed that Amalgamated had raised serious issues to be considered by it.