Municipality cancels NIS 5 million tender and chooses a path that raised many questions

The Ganei Tikva municipality canceled a tender for school furniture worth NIS 5 million and transferred the work to a construction contractor, who is not a furniture supplier. Z.K. Ayalon Projects in Wood, which bid in the tender, petitioned the District Court, claiming the cancellation was unlawful and that its bid was about 35% cheaper. The court annulled the municipality's decision and ordered the committee of three to renew the selection process.

The Ganei Tikva municipality canceled a tender for school furniture worth NIS 5 million and transferred the work to a construction contractor, even though he is not a furniture supplier. Z.K. Ayalon Projects in Wood, which bid in the tender, petitioned against the decision to the District Court. The petition claimed that the cancellation was unlawful and that the company's bid was about 35% cheaper than the bid of the contractor the municipality chose to engage. During the hearing, it became clear that the chosen construction contractor does not himself serve as a furniture supplier, and that he contracted with another company that was supposed to actually supply the equipment to the school. The Ganei Tikva municipality filed a request for permission to appeal with the Supreme Court against the interim order, but the request was denied. In the ruling given last week, the District Court annulled the municipality's decision and ordered its committee of three to renew the selection process. In accordance with the decision, the municipality will inform the companies that bid in the tender that the engagement will include only the equipment required for the growing division at the school, according to the specification presented to the court. The judge added that if the committee decides not to choose the petitioner's bid, which was the cheapest, it will have to hold a hearing for it and present the evidence on which its decision was based. The ruling emphasized that the parties must act in good faith and cooperation to complete the process quickly and allow the furniture to be supplied to the school before the school year opens on September 1.