This article is an excerpt from the 2023 edition of The Art of Tendering: A Global Due Diligence Guide.
In its March 2022 Report of Investigation Concerning Allegations of Conflict of Interest in the Award of Contract for Artistic Direction of the 2016 Independence Grand Gala Celebration by the Jamaica Cultural Development Commission (JCDC), Jamaica’s Integrity Commission found that the government violated open tendering rules when it awarded a contract to an unsolicited proposal.
While the investigation, which was prompted by allegations of conflict of interest, found no evidence of undue influence or interference, the Integrity Commission determined that the procurement rules were not followed in the direct award decision. As the Commission stated, the ongoing relationship between the representative for the company that submitted the unsolicited proposal, and government officials, raised concerns over potential conflicts:
The [Director of Investigation] concludes that at the time of submission of the Unsolicited Proposal, Mr. Trevor Nairne had an established professional relationship with the JCDC which began in 2012. The DI further concludes that at the time of submission of the Unsolicited Proposal, Mr. Nairne also had a longstanding friendship and professional relationship with Mr. Lenford Salmon, then Senior Advisor to the Honorable Olivia Grange, Minister of Culture, Gender, Entertainment and Sport.
The Integrity Commission noted that the government failed to establish proper procedures to deal with unsolicited proposals and recommended that it implement guidelines for the acceptance and evaluation of unsolicited proposals to “ensure that the objectives of fairness, transparency and value for money are achieved.”
As this case study illustrates, the award of contracts based on unsolicited proposals, particularly in the absence of established procedures for dealing with those proposals, can create significant concerns over the legitimacy of any resulting contract awards. Public institutions should establish clear practices for dealing with unsolicited proposals if they plan to award contracts based on those non-competitive practices.