Legal action on tender a threat to course, court told

A LEGAL action has cast doubt over funding for a new degree course due to begin next autumn at the Athlone Institute of Technology…

A LEGAL action has cast doubt over funding for a new degree course due to begin next autumn at the Athlone Institute of Technology and which 24 students have signed up for, the Commercial Court was told yesterday.

Mr Justice Peter Kelly agreed to the institute’s application to fast-track the hearing of a challenge by QDM Capital Ltd, an electrical and mechanical systems installer, Lower Baggot Street, Dublin, to the manner in which a contract for the upgrading of the science facility was advertised last month.

The judge said the central issue in the case related to the nature of the contract and directed a hearing on June 1st.

QDM claims the manner in which the contract was advertised – on www.etenders.gov.ie – breached procedures under the relevant European Union directive and regulations. It claims it is entitled to a proper opportunity to tender for the contract.

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When the contract notice for the project was published on April 7th last, it failed to provide sufficient information to enable potential tenderers ascertain the value of the contract, QDM claims. The information published had the effect of misinforming potential tenderers as to the type of contract and the value, it also alleges.

Declan McGrath, for the institute, said this was a very urgent matter as the refurbishment works for the laboratories were due to start shortly. It had to be completed before 24 students begin a new BSc honours degree course in sports science with exercise physiology in September.

He said funding for the course was approved by the Department of Education last month after which the contract was advertised. If the upgrading was not completed on time, there was a risk funding would not be received.

The issuing of the legal proceedings acted as an automatic stay on the award of the contract. His client was very concerned that the issue be decided as soon as possible. The central issue was the nature of the contract, whether it was a public works contract or otherwise, he said.

The institute claims the works are below the threshold set out in the relevant EU directive on the co-ordination of procedures for the award of public contracts, public supply contracts and public service contracts. It claims, due to the urgent nature of the works and the fact that funding was only recently approved, it chose to use the minimum requirements at the stage where companies had to submit an expression of interest.

The court heard it was hoped the refurbishment would also allow for the laboratories to accommodate more students.

The college said it anticipated revenue from the new course of about €204,000 a year and that it would also receive additional funds as a result of being able to accommodate more students.

Mary Carolan

Mary Carolan

Mary Carolan is the Legal Affairs Correspondent of the Irish Times