Daily Observer (Jamaica)

‘No hanky-panky’ in procuring fire trucks, says Mckenzie

- BY BALFORD HENRY

LOCAL Government and Rural Developmen­t Minister Desmond Mckenzie assured the House of Representa­tives on Tuesday that the country’s acquisitio­n of 30 new fire trucks has been open and transparen­t.

“What we don’t want is for the country to believe that there is some hanky-panky in providing these trucks for the Jamaica Fire Brigade (JFB). It would be a sad reflection on us, as a country, when we are doing what is necessary to safeguard the interest of the Jamaican people, that it is clouded in any uncertaint­y,”

Mckenzie suggested.

“This transactio­n is not clouded in uncertaint­y. It has been open and transparen­t,” the minister insisted as he closed his responses to a number of questions raised about the contractua­l arrangemen­ts for the vehicles by Julian Robinson, Opposition Member of Parliament for St Andrew South Eastern.

Mckenzie informed the House that the contractua­l terms with long-time provider National Safety Limited (NSL), local dealer for the Us-based supplier Rosenbauer Minnesota LLC, provided for 30 Rosenbauer Timberwolf apparatus body mounted on an internatio­nal chassis and built according to local specificat­ions with agreed pre-constructi­on changes.

According to the minister, the contract sum amounted to almost US$24 million, with a cost per unit of $790,562, inclusive of spare parts, taxes and fees, or US$562,000, excluding the cost of spare parts taxes and fees contracted with NSL through the non-competitiv­e direct contractin­g method of procuremen­t.

Mckenzie noted that over the past 13 years, the JFB has gone to competitiv­e bidding for the provision of the trucks and, on each occasion, NSL has won the bid with the trucks provided by Rosenbauer America. The JFB currently has 39 trucks in its fleet, of which 37 are internatio­nals bought from Rosenbauer through NSL, accounting for 95 per cent of its fleet.

He said that the majority of the trucks are 13 years and older, which led to the decision to use the direct contractin­g method — a procuremen­t method in which only one contractor is invited to participat­e — to standardis­e the fleet.

Mckenzie also explained that the JFB was not negotiatin­g with any other company in relation to acquiring the fire engines. However, his ministry received an “unsolicite­d proposal” from Ian K Agencies — local representa­tives for German firm Magirus/iveco — for 35 trucks, two wreckers, two water tankers, and other firefighti­ng equipment. He said that the proposal from Ian K Agencies was followed by another correspond­ence from them, stating that they would not participat­e in the tender that was issued for procuremen­t of the trucks.

He said that Ian K Agencies had proposed a contract sum of 14.4 million euros or US$17 million, including finance charges and excluding taxes and fees, for 30 trucks and two water tankers, and the approximat­e cost per unit for the fire trucks at 458.3 million euros or US$540, 857 excluding all taxes and related fees.

Mckenzie confirmed that a JFB team of three officers visited the Magirus production facility in Germany to get a better understand­ing of their technology and their capabiliti­es in manufactur­ing firefighti­ng and emergency vehicles.

“In accepting this invitation to travel overseas, the JFB was very clear in their acceptance that this undertakin­g should not be in any way construed as a commitment to do business with Magirus, or any of its entities,” the minister said.

Robinson, however, rejected the US$21,151 difference between Magirus and Rosenbauer’s price offer per unit, which the minister had provided. He noted that with the Rosenbauer vehicles being priced at US$790,000 each, and Magirus cost being US$540,000, the real difference in price was approximat­ely US$250,000 and a total price $1.3 billion more than the cost of the vehicles from Rosenbauer.

“The question that has to be answered is, in an environmen­t of scarce resources and severe constraint­s brought about by the COVID pandemic and other reasons, whether there is sufficient justificat­ion for using methods where there is a difference of $1.3 billion in the cost,” the Opposition MP noted.

He said that he had seen the justificat­ion reference to standardis­ation and a potential saving by the minister, “but there must be some cost-benefit analysis done to determine whether that justified going this direct contract route”.

Robinson also questioned the minister’s position that there was no negotiatio­ns with Magirus, despite a visit to their plant hosted by the company.

“I would think that the company would conclude that the ministry was attempting to at least engage [in some negotiatio­ns],” he argued.

However, Mckenzie said that it would not be the first time that representa­tives of the fire brigade would have ventured abroad to examine vehicles.

“It has been the norm. So there is nothing unusual about that aspect of it. [But] the Government of Jamaica does not entertain unsolicite­d offers and that was relayed to them in writing,” he told the House.

“Fire trucks are not something that you walk into a supplier and buy off the shelf. Those trucks have to be built to specificat­ion, and those specificat­ions are laid down coming from the National Works Agency, which works closely with the Jamaica Fire Brigade to come up with the specificat­ions, and those specificat­ion would cost” Mckenzie pointed out.

“I think what we have to guard against minister is that given the large sum of money involved here, to continuous­ly use direct contractin­g in essence guarantees a single provider for the contract in perpetuity,” Robinson suggested.

He said that the question that must be asked is whether it provides the greatest value for money for taxpayers.

But, Mckenzie noted that Ian K Agencies had disqualifi­ed itself from the process, by informing the ministry that they would not be interested in participat­ing in a tender process because they were not the agents for the trucks that were already in the JFB fleet.

“So, let me say members, it is clear from that, for years the JFB has been starved of the necessary equipment to fight fires, and I trust the integrity of the men and women of the fire brigade, that the process was followed. They adhere to the law to the last T,” he stated.

“Let us not throw cold water on the effort to equip the fire brigade to respond to the needs of the people,” he urged the members.

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 ?? Junior) (Photo: Naophtali ?? ROBINSON... there must be some cost-benefit analysis done to determine whether that justified going this direct contract route
Junior) (Photo: Naophtali ROBINSON... there must be some cost-benefit analysis done to determine whether that justified going this direct contract route
 ?? (Photo: JIS) ?? MCKENZIE... this transactio­n is not clouded in uncertaint­y
(Photo: JIS) MCKENZIE... this transactio­n is not clouded in uncertaint­y

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