Ganey Tikva Municipality's 5 Million Shekel Tender Cancellation Challenged in Court
The Ganey Tikva municipality canceled a 5 million shekel tender for school furniture and awarded the contract to a construction firm, despite it not being a furniture supplier. The court overturned the decision and ordered a new selection process.
The Central District Court in Lod has overturned the Ganey Tikva municipality's decision to cancel a 5 million shekel tender for school furniture. Instead of proceeding with the competitive process, the municipality had attempted to award the contract to a construction firm already working at the school. The court has now ordered the tender process to be renewed and completed urgently before the start of the school year.
After initially publishing the tender and receiving bids, the municipality canceled the process, citing a "change in circumstances." It subsequently contracted the construction company to supply the equipment, despite the firm not being a furniture provider and intending to subcontract the work.
Z.K. Ayalon Projects in Wood, a participant in the original tender, filed a petition against the move, noting that their bid was approximately 35% cheaper than the contractor selected by the municipality.
"A local authority seeking to cancel a tender process bears a heavy burden to justify its decision," stated District Court Judge Efrat Fink.
Judge Fink had issued an interim order halting the contract at the preliminary stage, a decision the municipality failed to overturn in the Supreme Court. In its final ruling, the District Court ordered the municipality's tender committee to restart the selection process. The municipality must notify all original bidders that the contract will cover only the equipment required for the school's growing division, based on the specifications presented to the court. Should the committee choose not to select the petitioner’s offer—which was the lowest—it must hold a hearing and provide evidence for its decision.
The court emphasized that all parties must act in good faith to ensure the furniture is delivered by the September 1st deadline.
The petitioner was represented by attorneys Oz Cohen Koren, Violetta Shiversky, Moran Rosenberg Cohen, and Shir Buchlin of the Negbi Cohen firm. The municipality was represented by attorneys Limor Sapchek and Ronit Ovadia.
