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Controversy marks Data Edge deal

Sajiadur Raiiman
An international consultancy awarded the work on two projects on automated cheque processing and electronic fund transfer to a firm that was both highly expensive and less experienced than its competitors, raising controversy over the fairness of the deal.
Data Edge, a local firm, quoted $9.88 million for two projects -- Bangladesh Automated Cheque Processing System (BACPS) and Bangladesh Electronic Fund Transfer Network (BEFTN). Its bid was about 90 percent more expensive than the other bidder, Cambridge Solutions Ltd (CSL)'s $5.22 million offer.
Data Edge bagged the job from Crown Agents, an international development company that acts on behalf of the Department for International Development (DFID). The DFID is funding the two projects.
In terms of capability and experience, CSL has an advantage over Data Edge. While Data Edge has no working experience in Bangladesh or any other South Asian countries a requirement stipulated in the tender document CSL and its consortium partners have experience in Bangladesh and India.
Both firms named Unisys and Aperta, two global IT companies, as their partners in the project. CSL however quoted some other global firms as partners, as well. Yet, CSL scored low in the technical evaluation 48 and 51 points for the two project biddings,
while Data Edge got 80 and 78 points.
Despite such high scoring by the winner, the ultimate score difference between the two firms was minimal because financial offer by CSL is more attractive than that of the other firm.
Although CSL's scores do not qualify the firm's quoted price for evaluation, its financial offer was opened and announced. On top of this, the company was also asked for various clarifications.
This was all done, as the general manager of the concerned department of the Bangladesh Bank Chowdhury Mohidul Haque said, to create competition.
However, questions are now being raised if for competition's sake a company that did not cross the threshold could be invited to the financial round, why its technical offer could not be negotiated for the sake of saving about $5 million.
CSL wrote to the DFID, the financier of the projects, the government and the Bangladesh Bank (BB), seeking redress for alleged manipulation and demanding a review of the technical scoring process.
The DFID has taken the issue seriously and sent an immediate reply to CSL.
“I have contacted the Head of Procurement of DFID. I have asked them to review independently the process followed by Crown Agents and the scores given," Paul G. Cairns, Team Leader of the DFID's Counter-Fraud Unit in UK, replied to a CSL letter.
Crown Agents, acting as an
agent on behalf of DFID, had invited bidders on February 22 to submit their proposals regarding the automated cheque processing and electronic fund transfer projects
Although the evaluators graded the technical offers on July 6, they sent a set of questionnaires, which included some technical issues, to CSL on July 17, long after giving the scores on July 6.
"That means the evaluators gave the scores on the technical offers without assessing the proposals," Shahudul Haque, managing director of Syscom, the local partner of CSL, said.
A four-member team evaluated some 1,600 pages of technical documents in just five working days.
Asked to comment on the evaluation, Tom F Duff, Contracts Manager of DFID ( Projects, said, “The issue is confidential. I cannot make comments on this.”
The BB general manager said CSL proposes to use SWIFT as the network infra- I structure for electronic fund transfer that, according to him, I is a negative approach. He also i claimed CSL proposal to be 'highly expensive'.
But the Managing Director of Syscom Shahudul Haque said SWIFT is a recognised international financial messaging system, which is fully secured and locally applicable.
He also said CSL offer has indicated all the recurring costs, which the individual banks will pay. All other offers must also carry similar recurring costs.