MÁV and Stadler go steady, not just flirt
Monday, May 30, 2005, 00:00
For a second time, state railway company MÁV Rt picked Switzerland-based Stadler Bussnang AG and its Hungarian partner Ganz Transelektro Transport Rt as the winner of a controversial tender for the supply and maintenance of suburban railway engines. The earlier decision was appealed by Canadian Bombardier, which had been ranked second behind Stadler in spite of the fact that it had undercut the latter?s bid by Ft 10 billion.
MÁV will first purchase 30 Flirt engines from Stadler, with an option for 30 more. In the second round, the supplier lowered its offer by over Ft 10 billion; thus the total value of the contract is approximately Ft 120 billion. The trains will run between Budapest and three towns in northwestern Hungary from 2006.
This time, the decision seems to be final in spite of the controversies that surrounded the public procurement tender ever since it started 13 months ago. Stadler was first named by MÁV as the tender winner on March 18; however the Public Procurement Arbitration Committee (KDB) later decided that the bid and the references were invalid and instructed the railway company to repeat the procedure. The first result was declared null and void, and the committee also levied a fine on MÁV.
In the second round, Bombardier adjusted its bid to MÁV?s scoring criteria. For instance, the company offered to do maintenance work practically for free as you could earn many credits on this part of the project. On the other hand, it made a less generous offer on other items, which weighed less in the overall score. In short, the Canadians tried to submit an offer similar to Stadler?s, which was preferred by MÁV in the first round. This did not prove a winning strategy, either: this time, MÁV rejected Bombardier?s bid on the grounds that it failed to meet the tender requirements.