In a local government procurement, a contract worth ₦50 million must be awarded following the law that (i) at least three independent bids are required, and (ii) each competitive bid must be at least 10 % lower than the previous highest bid. The bids received were: ₦48 million (independent), ₦52 million (independent), and ₦45 million from a supplier who paid a bribe of ₦2 million to an insider and was accepted.

a) Calculate the percentage by which the accepted bid undercut the lowest independent bid.

b) State whether the procurement complied with the legal requirements.

Question

In a local government procurement, a contract worth ₦50 million must be awarded following the law that (i) at least three independent bids are required, and (ii) each competitive bid must be at least 10 % lower than the previous highest bid. The bids received were: ₦48 million (independent), ₦52 million (independent), and ₦45 million from a supplier who paid a bribe of ₦2 million to an insider and was accepted.

a) Calculate the percentage by which the accepted bid undercut the lowest independent bid.

b) State whether the procurement complied with the legal requirements.

Accepted Answer

6.25 % and the procurement was not compliant with the law.

Neco 2020 Civic Education Question 46

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