ComputerLand demands compensation from the Treasury

2007-04-13

The IT company ComputerLand (CL) has taken legal action against the Agricultural Market Agency (ARR) and the Public Procurement Office (UZP) for granting a contract to its competitor before processing CL’s complaint.
The action refers to a tender for the implementation of an integrated financial and accounting system for the ARR announced by the Agency in 2003. The system was needed to assist with the payment of EU subsidies for farmers. Four companies took part in the tender, and ComputerLand and ComArch, a Krakow-based IT integrator, eventually advanced to the final stage. The ARR pronounced the tender invalid and chose the latter company. CL complained, and a team of UZP arbiters stated that ComArch should have not been chosen as the contractor. The companies went to court, but the final ruling has not yet been delivered.
The UZP did, however, allow the ARR to sign the contract with ComArch, as the European Commission (EC) had warned the agency that if the agreement was not signed by 7 November 2003, the PLN 20m (€5.3m) for the system, granted by the EC, would have to be paid back.
CL insists that ComArch won the contract despite the fact that its offer did not comply with all tender requirements. The company also emphasises that the courts have overturned the UZP’s decision which approved the signing of the agreement with ComArch prior to the processing of CL’s complaints.
The ARR and UZP point out that the latter’s decision was not unlawful, as the Public Procurement Act then in force contained exceptions which allowed for the signing of the contract before the protests were dealt with. The Agency and the Office insist that CL should not apply for compensation for “hypothetical” profits from the contract, as the ARR was not obliged to sign the contract with that company. ComputerLand is demanding PLN 2m (€0.52m), as it stated that this would be the margin on the contract in question, which was worth PLN 8m (€2.1m).
The legal action is the first relating to IT contracts for public bodies in which the bidder has sued not only the institution organising the tender, but also the Treasury (represented by the UZP).

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