​Contractor “has lost faith” in council tendering

One of the largest civil engineering contractors in the islands has currently withdrawn from bidding for council contracts as they no longer have any confidence in how officers handle the tendering process.
The livery and work of Duncan MacKay and Sons are well-known throughout the islands.The livery and work of Duncan MacKay and Sons are well-known throughout the islands.
The livery and work of Duncan MacKay and Sons are well-known throughout the islands.

​Duncan Mackay and Sons currently has a workforce of over 40 and has a long-standing reputation in the islands and even further afield, with the firm now working on projects on the mainland. The family-run firm has been in existence for over 70 years, after being set up by the directors’ father after the Second World War.

The issue with Comhairle nan Eilean Siar has come to a head following recent discussions over a contract for the replacement of a tidal culvert in Barra, although the company says they have had concerns for some time now.

The Loch an Obe project involves remedial work on a collapsed embankment and the installation of a new culvert with a raised double track section of road.

According to Duncan Mackay and Sons director, Hector Mackay, the reason the Comhairle gave for rejecting their submission was that it included temporary closure of the road, something they said was non-compliant.

However, Mr MacKay said that within the official tender document details for road closures were required. Initial correspondence advised Duncan Mackays that they had been disqualified over scoring poorly in the methodology portion of the tender, where they scored 1 out of 5, meaning they had shown “i nadequate response with little or no understanding of requirement or evidence of compliance” after submitting a 20-page method statement and risk assessment, with additional evidence including a lift plan.

Furthermore, he said that had the council taken up their offer they could have saved hundreds of thousands of pounds and met the original £1.2million budget as opposed to now spending over £1.5million.

Speaking to the Gazette, Mr Mackay said: “We have had numerous solicitors’ letters back and forward with the Comhairle and a face-to-face meeting with the Chief Executive, Head of Law and Governance, Head of Assets & Infrastructure and Council Leader, all of which were less than productive.

“At the face-to-face meeting they advised that since we mentioned a road closure, which the tender documents stated was not an option - even though scoring criteria asked for details - our tender was non-compliant and the subsequent cost saving of £500k was not suitable for evaluation."

He added: “We have repeatedly asked for an external review/audit of the process (which we offered to pay for) as we do not believe it’s fair, and they finally offered an internal review – but this is not something that we would accept, given it’s their internal processes we are questioning. They have a procurement department that doesn’t seem to have had any involvement with the tender. At the meeting, no one could confirm how the tender was dealt with on receipt.”

Mr Mackay said that the legal advice they have had “is that there is no reason legally to exclude us from the tender process and they could well have gone ahead with our cost saving option”.

On withdrawing from all council contracts, he said: “I am extremely disappointed with the council. We have allowed them every opportunity to put things right, even offering to pay for external assessment of the tendering process. They have gone to great lengths to cover up their wrong doings.

“Running a company that holds the local community at our heart, it bewilders me that they have ignored the option of saving £500,000 while they impose a cut of £1.7 million on our community.

A Comhairle nan Eilean Siar spokesperson said: “Duncan Mackay & Sons Limited’s tender for the contract in question was assessed as non-compliant following external evaluation and this matter has already been thoroughly investigated.

“Comhairle nan Eilean Siar is a huge supporter of the local construction industry through the award of contracts for large projects, maintenance work and notably in the promotion of careers in the sector.”

The council said they hoped the firm “will reconsider their position.”