Council for Geoscience v New Resolution Geophysics and Another (61912/2018) [2019] ZAGPPHC 266 (29 May 2019)

Council for Geoscience v New Resolution Geophysics and Another (61912/2018) [2019] ZAGPPHC 266 (29 May 2019)

The court found that the Bid Evaluation Committee and Bid Adjudication Committee failed to properly evaluate the bids by not accounting for the different VAT rates used by the bidders. This irregularity was material, as it affected the determination of the lowest bidder and thus the outcome of the tender award. The first respondent's argument that it intended to absorb the VAT difference was not supported by the evidence, and any post hoc offer to waive the difference could not cure the irregularity. The court held that the applicant was entitled and bound to approach the court to review the irregular decision, as only a court can set aside an administrative act once made. The...

Citation
[2019] ZAGPPHC 266
Parties
Applicant: Council for Geoscience; Respondent: New Resolution Geophysics; Respondent: YBR Investment Holdings (Pty) Ltd t/a Aerophysx
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
29 May 2019
Case Number
61912/2018
Procedural Posture
Review Application / Judgment
Outcome
Application granted. The decision to appoint the first respondent is reviewed and set aside. The applicant is authorised to re-evaluate all shortlisted quotes. Each party to pay own costs.
Judges
E.M. Kubushi
Legal Topics
Public Procurement, Principle of Legality, Preferential Procurement Policy Framework Act, Material Irregularity, Remittal of Administrative Decision
Administrative Law Civil Procedure Public Procurement Principle of Legality Preferential Procurement Policy Framework Act Material Irregularity Remittal of Administrative Decision

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Parties

Council for Geoscience

Applicant

New Resolution Geophysics

Respondent

YBR Investment Holdings (Pty) Ltd t/a Aerophysx

Respondent

Procedural Posture

Review Application / Judgment

Legal Issues

  1. 1 Whether the applicant's decision to award the tender to the first respondent is reviewable and should be set aside.
  2. 2 Whether the matter should be remitted for re-evaluation of bids or the tender process should commence de novo.

Ratio Decidendi

The court found that the Bid Evaluation Committee and Bid Adjudication Committee failed to properly evaluate the bids by not accounting for the different VAT rates used by the bidders. This irregularity was material, as it affected the determination of the lowest bidder and thus the outcome of the tender award. The first respondent's argument that it intended to absorb the VAT difference was not supported by the evidence, and any post hoc offer to waive the difference could not cure the irregularity. The court held that the applicant was entitled and bound to approach the court to review the irregular decision, as only a court can set aside an administrative act once made. The...

Court Disposition

Application granted. The decision to appoint the first respondent is reviewed and set aside. The applicant is authorised to re-evaluate all shortlisted quotes. Each party to pay own costs.

Orders

  • The applicant's decision of appointing the first respondent for the KDD extension block high resolution airborne magnetic and radiometric survey, awarded under request for quotation dated 14 February 2018, is reviewed and set aside.
  • The applicant is authorised to re-evaluate all shortlisted quotes under request for quotation number SAS818, dated 14 February 2018.