NITB asked to investigate violation of PPRA rules, nepotism

ISLAMABAD: Manpower outsourcing company ALM Outsourcing (Pvt.) Limited has requested the National Information Technology Board (NITB) to investigate a case of nepotism within its department, alleging that purchase orders were issued to a blue eyed company in violation of Public Procurement Regulatory Authority (PPRA), Profit has learnt.

According to documents available with this scribe, the chief executive officer of ALM Outsourcing (pvt) Ltd. has written a letter to the Board’s executive director (ED) with regard to the violation of rules. The letter states that the purchase order was issued by NITB to a bidder with high rates and without ensuring a fair process.

It may be mentioned here that ALM Outsourcing (Pvt.) Ltd. has been working with NITB as a third party HR company for more than two years. It was hired through a competitive bidding process. During this period, ALM’s provision of technical services to the national IT board have been immaculate. The company has been exceeding expectations despite various challenges.

However, besides ALM, two other third party HR companies were also working with the NITB, providing it with similar services. On June 30, 2022, the Board decided against renewing the service contract of one of the two companies, 360 Technologies (Pvt.) Ltd. As a result, almost 100 service providers employed by 360 Technologies were supposed to be shifted to the remaining two companies.

ALM alleges that PPRA rules were not followed in the process and 94 service providers were shifted to Solocholzes Pvt. Ltd. on July 1. The company said that the purchase order was changed.

According to tender No. NITI3-4(150)-CP-Cabinet/2018 dated February 13, 2020, only two service categories including system administrator and network administrator were advertised which 360 Technologies (Pvt) Ltd. won. After the expiry of the service contract, the service category was changed by NITB in PO from network and system administrators to network and system support officers to favor Solochoicez (Pvt) Ltd. 

According to tender No. NIT8-4(299)/2019 dated March 31, 2021, 38 different service categories were advertised. This was won by Solochoicez.

Despite the availability of similar service categories, the service category was changed to favor Solochoicez by awarding the PO of 94 service providers in the high priced category. This can be verified from the minutes of the meeting of the financial opening of the said tender. 

It is pertinent to mention here that changing the service category and awarding the PO to a high priced category is a clear violation of PPRA Rule 36(i) and PPRA Rule 38. 

Furthermore, ALM has a similar service category available at a lower price and with more experience. The company has been providing the service for  almost four years as compared to Solochoicez’s three years of experience.

The number of service providers up to our available limit could have been shifted to ALM which would have been cost effective; however, ALM has not been consulted in this regard which raises questions on the process of awarding the PO, the letter to NITB’s executive director states, requesting him to look into the matter, especially to ensure transparancy.

Meanwhile, the Ministry of IT’s spokesperson while speaking with Profit said that the vendor, Solochoicez, has been with NITB for over a year under a contract. “There was neither any extension in their scope nor was there a merger of contracts. Solochoicez’s original contract had empty positions available to be filled,” he said.