Agrocorp International Pte, a Singapore grain supplier, received an award letter to supply 200,000tn of wheat at a total cost of 44.44 million dollars.

The Public Procurement & Property Disposal Service awarded the company out of a total award of 400,000tn of wheat, which the Service planned to procure on behalf of the Ethiopian Trading Business Corporation for market stabilisation purposes. Agrocorp received the award letter on January 3, 2020, but did not sign the contractual agreement yet.

For the bid that was floated on September 14, 2019, under four lots, Agrocorp and Hakan Agro offered the lowest prices for two separate lots. Agrocorp and Hakan offered 43.28 million dollars and 44.44 million dollars, respectively. GemCorp Commodities Trading, which bid for all of the four lots, was the second-lowest bidder, offering 44.36 million for the first two lots and 44.78 for the remaining lots.

However, Agrocorp and Hakan were disqualified from the bid for not attaching a guaranteed assurance for aflatoxin requirements on the technical evaluation that was opened on November 25, 2019. GemCorp, which was found in compliance with the aflatoxin requirements, was later awarded on December 23, 2019, for all the lots.

Displeased with the decision, Agrocorp complained to the Service, stating that the bid document failed to put aflatoxin as a requirement. It also presented a document that shows it can meet the aflatoxin specification. The technical committee reviewed the document and awarded Agrocorp with the contract, cancelling the previous award given to GemCorp.

While awarding Agrocorp, the Service approached Hakan to present its aflatoxin specification to regain the award.

However, the company declined the invitation, reasoning the price validity date it offered had already expired, according to Worku Gezahegn, acting director of procurements at the Service, which procures goods and services for over 189 public institutions.

"Since the price of wheat in the global market varies," reads Hakan's letter, "the company can't provide the product at the prices it initially offered."