This is how SSNIT settled for $66m contract despite cheaper options

The Social Security and National Insurance Trust (SSNIT)settled for the $72 million OBS software to automate all the core processes in the administration of pension although it received tenders to undertake the project at much cheaper prices including $9 million.

A document on the deal sighted by citifmonline.com indicated that the eventual winner of the contract bid produced a tender price of $27,610,792 but that was reviewed to 34, 011,914.21 after the General Services Manager of SSNIT identified arithmetic errors in the tender of the eventual winner, Perfect Business Systems, and Silverlake Consortium.

Perfect Business Systems and Silverlake Consortium were chosen out of the total of 10 companies and joint venture responded to the tender by the October 19, 2011 deadline.

Perfect Business System’s $34million was almost nine times the amount presented by Persol Systems, about $4million.

Sambus Company Limited presented the second least bid price, $9.8 million.

After the deal between SSNIT and Perfect Business Systems and Silverlake Consortium was sealed in 2012, the cost of the project increased by about $32million.

The increase was attributed to the procurement of additional equipment including servers and flash drives and headsets.

Source: citifmonline.com