The National Audit Office said that the €42.7 million contract for the provision of state school transport was not providing good value for money.
A report which was tabled in parliament on Monday shows how the way in which the agreements were negotiated as well as the intransigent attitude of the companies that provide the service are to blame.
The government has outsourced a seven-year agreement through five service contracts which are to expire at the end of the 2017/18 scholastic year. A tender will be issued after June 2018.
The NAO noted that the process resulted in the disproportionate reduction in the expected quality of service, including the waiving of requirements for passenger seatbelts and a performance guarantee, together with the downward revision of contractual service levels.
The government had issued a direct order to extend the previous contract by one year. The Ministry was to re-secure the service through a competitive tender for subsequent years. However, this tender process, failed as the bids were either technically incompliant or significantly exceeded the budgeted estimate.
In the end, the contracts were negotiated and the current contracts were signed with the five previously unsuccessful bidders.
NAO said that the Ministry was put in a disadvantageous position from the start, as the procurement process started around one month before the new scholastic year, putting pressure on the ministry to conclude the agreements.
The NAO said that the ministry compromised on contractual conditions in an attempt to push down the suppliers' original asking price.
Meanwhile, in a reaction the Education Ministry reacted by saying that it acknowledged the NAO report. The statement said that the Ministry had done everything to ensure there are no favourable conditions.
from The Malta Independent http://ift.tt/2tEvAKE
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