The Panchayati Raj and Drinking Water Department has come under the scanner over the execution of pipe water supply projects.
Senior officers of the department are alleged to be trying to show undue favour to certain firms in lieu of pecuniary benefits. In fear of action, the Chief Minister’s Office (CMO) and the 5T Secretary are being kept in the dark.
Recently, Chief Minister Naveen Patnaik announced a Rs 1,020-crore package including Rs 177.84 crore drinking water project for 28 panchayats in Golamunda block in Kalahandi district.
Although the Panchayati Raj and Drinking Water Department (RWSS) has not finalised the project, the department Secretary has intimated CMO which firm would execute the project. It indicates towards tender-fixing.
As per the Department sources, KEC group became L-1 bidder by submitting bidding value of Rs 171.44 crore while authorities appeared to have taken decision to declare Megha Engineering and Infrastructure Limited as winner of the bid even as it had offered Rs 177.84 crore. By this decision to award the contract to L2 bidder (Mega Engineering), caused a direct loss of Rs 39 crore to the State exchequer.
The L-1 bidder was rejected on the ground that it had offered a value which is 15% lower than the project estimate cost. However, there is no such norm in the Engineering, Procurement and Construction (EPC) mode that a firm cannot be awarded work if it comes forward to work with a cost which is 15% less than the tender value.
This is not a lone case. Department officers have decided to reject L-1 bidder in three more tenders for drinking water projects in 26 panchayats in Sambalpur district, two panchayats in Jharsuguda , Binjharpur block in Jajpur and Bhuban block in Dhenkanal district. They have adopted Golmunda formula and decided to award the project to the Megha Engineering and Infrastructure Limited.
On the other hand, there is no mention of declaring a firm ineligible if it submits a value of 15% less than the tender value, as per the manual for EPC for work-2019 of Finance Department. However, the department sticks to 15 per cent Clause.
As per circular 11681 issued on dated 26.10.2013, 15% estimate would be applicable on estimate being prepared after analysis of every commodity. Only Section 36 of OPWD (Percentage Rate of Contract) the bid value is subjected to rejection in the event of any firm submitting at 15% less than the tender value.
It will be applicable as per 3.5.5(V) of OPWD Code which is mentioned in OPWD Code Volume-I book. However, department officer have bent the rules to award the project to firm of their choice.
Besides, the tender document is completely silent about the imposition of the above clause.
In the past, when the issue crop up EPC tender for the biggest drinking water project in Brahampur, Public Health Department had awarded the contract to L-1 bidder. The L-1 had submitted project value at 17.03% lower than the Rs 452.32 crore.
The Advocate General was also then approached on the issue. The AG office clearly stated that the Section 36 of OPWD Code would not be applicable. The L-1 bidder then executed the contract. The CM recently inaugurated the project. Now, with regard to fresh projects, the CMO is deliberately kept in dark. Question arises why the guideline adhered by the Government for L&T is not followed by the Panchayati Raj and Drinking Water Department.
It might be mentioned that Section 36 of OPWD Code is not applicable for EPC Contracts because survey, design, execution and Operation and Maintenance (O&M) and preparation of detailed project report (DPR) according to bidder design and engineering is complete responsibility of the bidder. Therefore, the department estimate rate is not comparable with the contractor’s bid price.
The Section 36 OPWD code is not being followed by the Housing and Urban Development Department, Odisha Construction Corporation, WATCO and not even accepted by the Niti Aayog for EPC contracts.
