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Arbitration committee fines MÁV over GSM-R tender

The Public Procurement Arbitration Committee (KDB) has annulled the decision of the state-owned railway company MÁV declaring its radio-communication tender (GSM-R) as unsuccessful for lack of a valid bid and fined the company HUF 3 million (€11,103) because the only bid submitted was valid and must therefore be evaluated, the Public Procurement Council announced on its website.

MÁV had called the tender to supply a GSM system and install it over three years, then operate the system over the next three years. Under the tender invitation, EU funding and Hungarian co-funding for the purchase amount to HUF 56.1 billion, while the complementary state funding and MÁV's internal funds total HUF 2.6 billion.

There were two applicants by the original deadline of October 2006, Nokia Siemens Networks and the Kapsch@Nortel consortium, which both went through to the second round in which they were to develop the specific offer over a number of rounds of negotiations.

The final offer was submitted by Nokia Siemens, however, it was declared invalid by MÁV.

Nokia Siemens Networks then turned to KD, which declared both of the reasons given by MÁV for declaring the offer invalid as illegal. One was that the equipment in the offer was not capable of simultaneously recording 200 calls and the other objected to the deadline for putting the system into operation. (MTI-ECONEWS)