Waste firm challenges contract award

29 October 2009

29 October 2009 | Paul Snell

SITA UK has launched a legal challenge against the Greater Manchester Waste Disposal Authority (GMWDA) alleging a breach in procurement rules in the award of a PFI deal.

The company claims the GMWDA infringed purchasing regulations by awarding a PFI contract for waste management services to rival bidder Viridor Laing.

SITA claims significant changes were made to the contract after the appointment of Laing as the preferred bidder. Because of this, it says, it should have been allowed to submit a revised bid in its position as a reserve bidder. It also claims its initial bid was 15 per cent cheaper than that of Laing.

"We have sought reassurance from GMWDA that our bid was treated fairly. However, the responses to requests for information have simply reinforced our concerns. Regrettably SITA UK has been left with no option other than to issue legal proceedings," the company said in a statement.

GMWDA has not yet responded to supplymanagement.com's request for comment, but it has been reported that the public sector body intends to fight the challenge, with faith its procurement process was conducted in line with EU rules.

No date has been set for proceedings.


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