The Lviv District Administrative Court fully satisfied the claim of the Drohobych Municipal Economy Department and recognised the State Audit Service’s Opinion as unlawful and cancelled it. The case concerns the announcement of the winners of the tender for the overhaul of Stryiska Street, which was held last year.
Thus, the court confirmed the legitimacy of the Department’s actions in rejecting two bidders and concluding a contract with WestInvestBud for the repair of Stryiska Street. In other words, if it were not for the actions of the State Audit Service, the road on Stryiska Street could have been repaired by now.
But first things first.
In February 2023, the Department of Municipal Economy conducted a procurement – an open tender for the overhaul of the road on Stryiska Street. This is the section from the Lesia Ukrainka intersection to the intersection of Vynnychenko Street. Three participants took part in the procurement: Onur Construction International LLC, Avtomagistral-Pivden LLC and WestInvestBud PE.
The first two bidders, Onur Construction International LLC and Avtomagistral-Pivden LLC, were rejected due to non-compliance of their bids with the tender documentation and construction standards. WestInvestBud was declared the winner.
However, the State Audit Service monitored the procurement and ordered the contracting authority, the Drohobych Municipal Economy Department, to terminate the contract with the third bidder, WestInvestBud, because they believed that the first two bidders were not subject to rejection. And the mistakes made by them could be corrected at the request of the customer within 24 hours.
The Department of Municipal Economy, in turn, appealed the SASU Conclusion to the Lviv District Administrative Court, arguing that the mistakes made by the two bidders changed the subject of procurement, the types of work envisaged by the project and did not meet state standards.
At that time, by the decision of the city council session and the decision of the executive committee of the city council, given the significant public outcry and numerous posts on social media, the Department was instructed to take measures to terminate the contract with the winner of the tender for the overhaul of the road section on Stryiska Street.
Now, according to Iryna Brovarska, Head of the General Department, Legal Advisor of the Department of Municipal Economy, on 23 January 2024, the Lviv District Administrative Court issued a decision satisfying the Department’s administrative claim in full and recognising the SASU Conclusion as unlawful and cancelling it. The court thereby confirmed the legitimacy of the Department’s rejection of the first two bidders and the conclusion of an agreement with the third bidder – the winner of the tender (decision of the authorised procurement officer Nadiya Voroniak).
In other words, as of today, the planned overhaul of the Stryiska road section could have already been carried out.