Judgment: 2016-02-26 · Court archive

Court of Appeal overturns extension of time in Galway SICAP procurement challenge

The court held that Forum Connemara had no good reason for bringing its challenge late after tendering for the single-provider contract. It allowed Galway County LCDC’s appeal.

Court of Appeal ·

Who, what, where, when and why

Who
  • Forum Connemara Limited (Respondent)
  • Galway County Local Community Development Committee (Appellant)
  • Galway Rural Development Company Limited
What

The court held that Forum Connemara had no good reason for bringing its challenge late after tendering for the single-provider contract. It allowed Galway County LCDC’s appeal.

Where

Places mentioned in the report

  • County Galway
When

Judgment:

Why

Reasons reported in the judgment

Forum Connemara began judicial review proceedings on 23 March 2015, seeking to quash both the September decision and the March contract award. The High Court found the challenge to the September decision was outside the 30-day procurement time limit, but extended time by about four and a half months under Order 84A because it considered the circumstances amounted to good reasons.

The Court of Appeal allowed Galway County Local Community Development Committee’s appeal against a High Court order extending the time for Forum Connemara Limited to challenge a Galway procurement decision. The appeal concerned the extension of time only; the court did not determine the underlying allegations about how the decision was made.

The dispute arose after the committee decided on 30 September 2014 that one provider would implement the Social Inclusion and Community Activation Programme (SICAP) across County Galway, replacing the previous arrangement of two providers covering separate areas. Five entities were invited to tender for the single lot. Forum Connemara submitted a tender, but Galway Rural Development Company Limited was awarded the contract on 2 March 2015.

Forum Connemara alleged that committee members, including its representative, were improperly excluded from the meeting that decided on one provider. It said the exclusions left only five members to vote and that the process was unfair. Those were allegations in the underlying proceedings, not findings made in this appeal.

Forum Connemara began judicial review proceedings on 23 March 2015, seeking to quash both the September decision and the March contract award. The High Court found the challenge to the September decision was outside the 30-day procurement time limit, but extended time by about four and a half months under Order 84A because it considered the circumstances amounted to good reasons.

On appeal, the Court of Appeal held that the 30-day period began on 30 September, when Forum Connemara knew of the alleged procedural wrongdoing. It rejected the grounds relied on for extending time, including the organisation’s efforts to resolve the dispute through negotiations, an alleged earlier assurance from a Department official, the public interest and public concern, and the nature of the programme contract.

The court also found that Forum Connemara had proceeded with its tender despite the documents making clear that the contract covered one lot for the whole county. In the court’s view, it had acquiesced in the decision while seeking the commercial benefit of winning the contract, then challenged that decision after an unsuccessful bid. The delayed challenge also seriously prejudiced the successful tenderer, Galway Rural Development Company Limited.

The Court of Appeal concluded that the High Court had erred in law and principle in finding good reason to extend time. It allowed the appeal. The judgment does not decide whether the September meeting or procurement decision was unlawful; it holds that the time extension should not have been granted.

Read the original court judgment

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