This item was published during the term of a previous administration that ended in April 2007
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Fisheries patrol vessel
25/05/2006
The Scottish Fisheries Protection Agency (SFPA) has today announced a decision to terminate the tendering process for a new patrol vessel.
The decision follows receipt of advice that elements of the process to procure a 'Minna' type vessel do not comply with EU procurement rules.
In particular the report identifies breaches with respect to technical specifications for the vessel and the procedure adopted which sought confirmation of bid prices and delivery dates.
SFPA Chief Executive Paul Du Vivier said:
"We identified problems in the latter stages of the process to secure a second Minna type vessel.
"With the benefit of advice which we commissioned, the Agency concluded that it could not advise Ministers that it should proceed to contract negotiation stage with this project.
"It is clear that the process could be challenged in the event of award of contract given the breaches of EU procurement rules. The Agency has therefore advised tenderers that the Minna-type procurement has been halted.
"The procurement strategy for obtaining the required marine surveillance capability is being reviewed, as are the Agency's procurement procedures."
Fisheries Minister Ross Finnie said:
"I announced the tender for this vessel last summer and it is hugely frustrating that this process has had to be halted.
"In the latter stages of the tender concerns were raised over clarification of bids. I asked the SFPA to investigate those concerns. In light of their further advice I have agreed that there is no alternative but to halt the tender process. I have agreed with the Chief Executive of the SFPA that there should be full disclosure of the reasons behind his decision.
"While the problem relates to this tender specifically I have asked the SFPA to review its procurement procedures. Until that review is completed I am unable to say when a new a new tender process will begin."
The procurement of a new vessel to support enforcement of Inshore Fisheries around Scotland was started in August 2005. It is the latest in a programme of fleet renewal, commenced in 2003.
The procurement process was taken forward under the Restricted procedure under the EU procurement rules. Following initial notes of interest, Appledore, based in Devon, Ferguson in Port Glasgow, and Peene-Werft, a German yard, submited tenders
However a number of aspects of the latter stages of the procurement process alerted SFPA and Executive officials and Ministers to possible concerns about the robustness of the process.
In the light of these concerns, Pinsent Masons, together with an independent procurement consultant, were invited to conduct a comprehensive review of the tender process.
The review noted that the procurement rules expressly prohibit the definition of goods of a specific make or source, or to a particular process that has the effect of favouring or eliminating particular goods or suppliers. The Agency accepts the need to review its procedures on this issue.
The report indicated that the key concern with regard to this tender process was the use of a final bid stage within the Restricted procedure and the subsequent evaluation of tenders.
SFPA wrote to tenderers asking them to submit a 'revised final bid price and a revised cardinal date programme' in light of the earlier than anticipated availability of SFPA's preferred propulsion system. All three responded and also provided information in relation to other aspects of their bids on which clarification had been sought during the bid clarification process.
While the SFPA's intention was for the 'final bid stage' to achieve a clarification, it would appear from some of the issues addressed by tenderers in their responses that such an intention may not have been the perception of tenderers. As a result, the reviewers concluded it would be difficult, if not impossible, for SFPA to justify the application of the final bid stage process as being consistent with the Restricted procedure.
This key concern provides sufficient, objective evidence for halting the process and not proceeding to contract negotiation stage. The Agency accepts this conclusion.