Judgment: 2013-07-16 · Court archive

High Court rejects Baxter challenge to HSE dialysis contract award

The court dismissed Baxter Healthcare’s judicial review challenge to the award of two Dublin dialysis service lots, finding its complaints either out of time or not established on the evidence.

High Court · [2013] IEHC 413

Who, what, where, when and why

Who
  • Baxter Healthcare Limited (Applicant)
  • Beacon Medical Group
  • Beacon Dialysis Services Limited
  • Michael Peart (Judge)
What

The court dismissed Baxter Healthcare’s judicial review challenge to the award of two Dublin dialysis service lots, finding its complaints either out of time or not established on the evidence.

Where

Places mentioned in the report

  • Sandyford
  • Dublin Mid-Leinster
  • Beacon Clinic
When

Judgment:

Why

Reasons reported in the judgment

The judge held that Baxter’s challenge to the Beacon tenderer’s financial qualification at the expression-of-interest stage was brought too late. Baxter knew in 2011 that Beacon Dialysis Services Limited was tendering on its own, and had been told that all candidates passed that stage. It did not raise its qualification concerns with the HSE until March 2012. The judge found no good reason to extend the time limit.

The High Court has dismissed Baxter Healthcare Limited’s challenge to the HSE’s award of two renal dialysis service contracts, refusing all the reliefs sought. Mr Justice Michael Peart delivered judgment on 16 July 2013 in proceedings concerning Lots 3 and 4 of a tender for satellite haemodialysis units in the Dublin Mid-Leinster area.

Baxter had provided a renal dialysis service at the Beacon Clinic in Sandyford since 2004. It challenged the HSE’s decision to award the two lots to the Beacon tenderer, raising issues about qualification, the identity named in the award notification, evaluation criteria and marks deducted from its bid.

The judge held that Baxter’s challenge to the Beacon tenderer’s financial qualification at the expression-of-interest stage was brought too late. Baxter knew in 2011 that Beacon Dialysis Services Limited was tendering on its own, and had been told that all candidates passed that stage. It did not raise its qualification concerns with the HSE until March 2012. The judge found no good reason to extend the time limit.

The award letters named “Beacon Medical Group” as the successful tenderer. The court accepted the HSE’s explanation that this was a typographical error: the bid assessed and selected had been submitted by Beacon Dialysis Services Limited, which had also submitted the expression of interest. The judge found that Baxter knew or ought to have known this and dismissed the complaint as out of time.

Baxter also argued that the HSE had used undisclosed criteria when scoring its proposal to place both lots at one site, including anticipated noise and activity and a preference for separate units. The judge found that noise and activity were not new criteria, but considerations within the evaluation of the facility proposal. He also found that the tender documents described the requirement for separate satellite units and that Baxter could have raised its combined-site proposal during the dialogue process.

The court rejected Baxter’s remaining complaints about its staffing proposal and several scoring decisions. The judge found that Baxter had not explained how its proposed staffing levels would meet the stated requirements, and that the HSE was not required to seek clarification. He found no manifest error in the other disputed marks, including those concerning emergency access, treatment areas on one floor, location and value-added proposals.

The judgment concerned judicial review of the tender process. The court did not substitute its own assessment of the bids; it considered whether the process involved a clear error or breached the applicable principles of transparency and equal treatment. It refused the reliefs sought.

Read the original court judgment

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