A company has asked for the cancellation of a government call for tender to reintroduce a helicopter service between Malta and Gozo, claiming “discrimination” and “anti-competition” terms.
Last week, on the eve of the closing date of the submission of proposals, Helicopter Services Malta – a private international helicopter company based in Malta – asked the Public Contracts Review Board (PCRB) to “cancel the tender and re-issue the call in order to allow a wider possibility of participation” of companies interested in providing the service.
Civil Aviation industry sources said that following such an objection, the tender is automatically suspended until the PCRB decides on the way forward.
The PCRB’s decision can also be challenged in court.
The technical specifications are discriminatory
According to the objections filed, the tender, issued on behalf of the government by Malta Air Travel Services Ltd – includes terms which restrict competition.
“The technical specifications indicated in the call are discriminatory and are also a barrier to competition as they limit the possibility of participation in this call,” the helicopter company claimed.
While complaining that the minimum requirements are restrictive due to the fact that the specifications indicated restrict the types of aircraft that may be available to provide the service, the company insisted that “the objectives of the call may be achieved by various types of aircraft” and “a wider variety of modalities of operation”.
While calling for a re-design of the technical specifications, the company said that in any procurement process, “it is an established principle that technical specifications must be drawn up in a manner that allow public procurement to be open to competition, and restrictive technical specifications are to be avoided.”
The company also pointed out an “error” in the tender, which has called for night operations. According to the company, such operations are not allowed according to current Transport Malta rules.
The tender involves “subsidies” from public coffers as under normal circumstances a helicopter service between the two islands is not deemed commercially feasible.
A similar tender issued in 2017 aimed at increasing the connectivity between the two islands, this time through a fast ferry service, is also deadlocked following claims of a vitiated process made by catamaran company Virtu Ferries.
A first call, which had selected Virtu Ferries to provide a fast-ferry service to Gozo Channel was cancelled and re-issued on the instructions of the Office of the Prime Minister.
Following the second call and a new evaluation committee headed by MFSA CEO Joseph Cuschieri, a newly formed company – Islands Ferry Network, formed by tomato producers Magro Brothers and the owners of Captain Morgan – were classified as having the best option to partner Gozo Channel.
The issue ended up in court and no decision has been taken yet on the way forward.
The new Malta-Gozo air link tender falls under the responsibility of Tourism Minister Konrad Mizzi.