The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A senior Chamber executive last night said it would be “a travesty” if Bahamian medical and pharmaceutical equipment suppliers were excluded from bidding on contracts associated with the Princess Margaret Hospital (PMH) expansion, with the sector seeking a “level playing field” and “transparent, open” process.

Confirming that he attended a Friday meeting between 20 companies and Frank Smith, the Public Hospitals Authority’s (PHA) chairman, Winston Rolle, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chief executive, said the concerns centred on instructions to ‘bypass’ them and got directly to the manufacturers they already had distribution deals for.

Mr Rolle said this was not only jeopardising existing contractual relationships between the Bahamian companies and their suppliers, but would make it impossible for the former to provide support services and spare parts if they had no role in bringing the equipment in.

Questioning whether the ‘manufacturer direct’ approach would generate the cost savings the PHA was projecting, Mr Rolle said contracts worth “tens of millions of dollars” were at stake for Bahamian companies.

He added that projects of the magnitude of the PMH expansion “roll around once every 20-30 years”, and if they did not have the opportunity to participate these firms - and the wider Bahamian economy - would potentially lose out on a significant capital injection.

Mr Rolle explained that the situation revolved around instructions allegedly given to the PMH expansion’s procurement manager, GBA Equipment Consultants, to cut Bahamian distributors out of the supply chain and instead deal directly with the manufacturers who supply them.

This had been communicated to the Bahamian wholesalers by their manufacturers, but Mr Smith informed them at the Friday meeting that he was “not aware” of this policy.

The PHA chairman promised to discuss the matter with his Board and get back to the suppliers.

Mr Rolle said GBA Equipment Consultants told them it had been specifically instructed not to deal with Bahamian suppliers, and bypass them instead, going directly to the manufacturers.

GBA had insisted it received these instructions from staff within the PHA, and Mr Rolle said he and the suppliers were trying “to get clarity” on whether this was a policy that originated with the PHA, the Government or individuals within the PHA. They were also seeking the “justification” for their exclusion.

“These kinds of project are not an everyday project in the Bahamas,” he told Tribune Business. “So projects like these that roll around 10, 20, even 30 years, that can exclude Bahamian companies from it, are a travesty.

“It’s very concerning because bidding opportunities of this magnitude come around very infrequently.”

The BCCEC chief executive said the PMH supply contracts involved “tens of millions of dollars”, including all the medical equipment and pharmaceutical supplies required.

For many of the suppliers, who had been serving the PHA for more than 25 years, the boost would be considerable, especially given their respective payrolls, NIB contributions and other injections into the economy.

Mr Rolle said whoever dreamt up the procurement policy “have to bear in mind these manufacturers’ representatives locally have contractual agreements with the manufacturers, and to some extent this is putting that at risk from both ends.

“The PHA has indicated this has to do with cost, and while we understand the need to minimise cost on the project, we don’t see why bypassing local representatives in favour of getting something direct will work, because they are in the best position to obtain discounts.”

Mr Rolle added that the Bahamian representatives effectively handled the procurement process for the Government and PHA, offering payment terms that were 30-60 days after delivery.

“In some instances these persons are funding the procurement process of the Government, and getting paid later,” he told Tribune Business.

“If you’re dealing with a foreign manufacturer, I’m not sure they’d have that kind of luxury. They may have to have that money upfront before they will provide that product.”

Pointing out that Bahamian pharmaceutical providers had the storage facilities to hold products safely, and prevent them going off, Mr Rolle said this might also be jeopardised by the new policy.

“It’s just concerning that when it comes to matters of life and health, life and death, the last thing we want to do is take some risks,” he added. “We need to ensure we have a stable and efficient healthcare system.”

While some commitments may have been made to manufacturers via GBA, Mr Rolle said this did not represent “the bulk” of the procurement needs.

He added of the Bahamian suppliers: “People do not want favours for consideration, they just want an opportunity to participate in a transparent process and level playing field. It’s just a matter of transparency, ensuring everyone is given an opportunity to compete and bid on a level playing field.

The Bahamian suppliers also wanted to ensure participating companies were involved in the industry, and “not just formed to take advantage of it”.

The companies at the meeting with Mr Smith were Bahamas Medical & Surgical Supplies; Bahamas Fire & Welding; Bahamas Orthopaedic Supplies; Cardinal Medical; Commonwealth Drugs & Medical Supplies; Coral Pharmaceutical; CSR Company; Island Medical Supplies; Javon Medical; Lewis Orthhopedics; Lowes Wholesale Drug Agency; MDMS International; Milsap International; Nassau Agencies; Oceanview Distributors; Ports International; St. Andrews Medical; Sun Medical; Universal Sade Investments; and Variety Disposable Products.