SMITHKLINE BEECHAM BIOLOGICALS S.A. AND ANOTHER v. STATE PHARMACEUTICAL CORPORATION OF SRI LANKA AND OTHERS | 1997 3SLR 20

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Offers were invited worldwide by the State Pharmaceutical Corporation on behalf
of the Director of Health Services for the supply of Rubella Viral Vaccine. There
were five offers. Of them, SmithKIine Beecham Biologicals S.A. Belgium (fourth
lowest tenderer) was the only person who had made a responsive bid conforming
with the tender document at the relevant date. In particular, its product had been
registered with the Cosmetic Devises and Drugs Authority of Sri Lanka, which was
a requirement of the tender conditions. It was also a past supplier; and there
was no past complaint with regard to the previous tender. None of the other
tenderers who were scheduled and considered were registered; nor were they
past suppliers. Accordingly, the Cabinet Appointed Tender Board decided to
award the tender to SmithKIine Beecham Biologicals S.A. Thereafter, without
communicating that decision to the tenderers and requesting them to make
any representations to the Tender Appeal Board, as required by the Guidelines on
Government Tender Procedure, the Tender Board allowed time to tenderers
to obtain registration. Pending such registration, the tender board altered its
original decision and made a limited award to SmithKIine Beecham Biologicals
S.A. for 2.5 million doses of vaccine. Thereafter the Tender Board proceeded
to award 2 million doses of vaccine to Biocinie S.P.A. Italy (which had
since registered its product) on the basis that the price quoted by it was “The
lowest offer”.

Read the full judgement here

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