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2 Security Firms Fight Ministry, Rs 256 Million Stake



2 Security Firms Fight Ministry, Rs 256 Million Stake

Two security companies, Rapid Security Services Ltd and Edmond Security Ltd, have taken the Ministry of Labour to the Independent Review Panel over a significant security services contract.

The contract in question involves providing security services for all hospitals and other healthcare institutions over a period of 24 months.

The contract was split between the two companies for a total sum of Rs 256,586,881.68, excluding VAT.

Rapid Security Services Ltd and Edmond Security Ltd allege that the Ministry of Health did not consider all the criteria before awarding these contracts.

Edmond Security claims that the Ministry failed to conduct “a thorough analysis of the submissions in accordance with the tendering guidelines.” It asserts that its proposal was rejected “unfairly and arbitrarily.”

On the other hand, Rapid Security Services Ltd argues that at the price they evaluated their services, the awardees of the contracts won’t be able to comply with the legal provisions regarding salary payments and various allowances. Therefore, the Ministry risks receiving subpar service.

The tender was launched on August 25, 2023, with a deadline of September 27 of the same year. It wasn’t until January 12, 2024, that the Ministry finally announced the names of those selected to execute the contract.

Top Security Service Ltd (Rs 134,454,600) and Premier Security Solutions Ltd (Rs 122,132,281.68) were selected to share the six lots of the contract.

In response to the arguments of the challengers, the Central Procurement Board (CPB) points out that for the first year of the contract, both selected companies based their quotations on a basic remuneration of Rs 13,009 per security guard.

However, Top Security Service accounted for a potential 10% increase in wages for the second year, while Premier Security Solutions Ltd prepared for a scenario where the basic salary would rise to Rs 18,636.92.

The CPB also highlights that according to clause 4.2 of the contract’s general terms, in case of an increase in basic wages due to a government decision, the contract amount will be automatically adjusted.

In its ruling, the Independent Review Panel decided to uphold the points of the defense and reject the arguments of the challengers.

Source: Defi Media

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