Head of Pärnu Hospital and chairman of the Estonian Hospitals Association Urmas Sule has declared a public procurement in which he aims the leasing contract at a prodigiously equipped Volkswagen Passat Alltrack with a price tag of 46,000 euros.
Dreams of an electric towing hitch
19th September 2016, 16:12
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The direction of the procurement is so obvious that it lists two examples bidders could consider: Škoda Superb Combi and Volkswagen Passat Alltrack. A link in the procurement documentation leads straight to the product websites of the two Volkswagen Group vehicles.
The Škoda is eliminated by way of procurement conditions requiring an electric towing hitch the manufacturer does not offer as an optional extra. It is possible to procure such a device for the Alltrack for 846 euros. Electric folding tow hitches are better known as optional extras on various luxury vehicles. One could ask why would a member of the board of the Pärnu Hospital need a towing hitch for business trips, especially an electric one.
One should not allow the fact that we are dealing with a Volkswagen and not, for example, Mercedes lead one astray when looking at procurement conditions. Extras required by the procurement cost a fair amount and have largely been copied from the Volkswagen Passat Alltrack catalog, leaving the competition with very little wriggle room.
Powerful machine wanted
The car should be powerful – the engine producing at least 160 kw. The procurement also calls for 18-inch wheels, the necessity of which experts place in the category of showing off rather than comfort. Said wheels cost an additional 549 euros in the Alltrack catalog. The vehicle must also have remote controlled pre-heating and -ventilation, allowing for a warm interior by the time the driver gets in the vehicle in winter and a cool one in summer.
Volkswagen also offers smoky LED taillights the professional merits of which also left car experts Postimees contacted puzzled.
Leather upholstery is seemingly a standard procurement condition as well, while the shade of the vehicle's metallic paint would be determined based on an agreement with the client.
The four-wheel drive, 162 kw, and luxurious even as standard Passat Alltrack costs more than 37,000 euros, while the specified extras take the price point to a little over 46,000 euros. The cost of a luxury vehicle.
Postimees called Sule and asked whether he would be the one driving the new car. «No, that is not strictly true; however, what is it you want to ask?» the hospital chief wanted to know. Why does a car owned by a hospital need an electric towing hitch? «I do not recall even chairing that committee; however, I cannot right now... I'm busy with other things, and I would definitely refrain from commenting on a public procurement over the phone.» You have signed those documents? «Of course, but I do not comment on everything I've signed over the phone, from another city.»
When I proposed I would call Sule the next day, he suggested I email the questions instead. «I have not planned to address this matter at this time. I will definitely take a look and address it tomorrow,» Sule promised.
While Postimees sent Sule an email containing a set of specific questions, it did not receive equally concrete answers. What follows is Sule's answer.
«Pärnu Hospital is part of the hospitals development plan. We are working with other hospitals, the health insurance fund, social ministry, and other institutions located in different places all over Estonia on a daily basis. In connection with these tasks, members of the hospital's board make use of official cars. As chairman of the board I have use of a 2012 Jeep Grand Cherokee.
The hospital is currently looking for two vehicles: a van to transport patients and employees, as well as a car to be used by a member of the board. Because representatives of the hospital have to drive often, in all seasons and various weather conditions, as well as in the dark, the procurement prioritizes safe driving. Procurement specialists have considered parameters of vehicles leased in the past, including previously found strengths and weaknesses when putting together procurement documentation.
I'm definitely better at explaining the requirements for the hospital's medical equipment than its vehicles. In addition to medical equipment, the work of the hospital requires use of ordinary technology, everything from washing machines to cars. This equipment must also be reliable, safe, and if possible user friendly. Those are the criteria based on which we procure equipment.»
The answer did not even specify who would be driving the vehicle. The hospital's board has two other members: Jan Põlluste and Veiko Vahula. The five-year leasing contract of Sule's Jeep Grand Cherokee is about to expire.
Pärnu Hospital held a procurement to lease three vehicles – probably including the Jeep – in 2011. The vehicles sought had to be luxuriously equipped also back then. Procurement conditions for two of the three vehicles included an electric towing hitch, 17-inch allow wheels, leather-covered gear lever, and an audio system sporting at least eight speakers. One vehicle was expected to have 18-inch alloys and a sunroof.
One potential bidder asked about the practical and maintenance costs-related use of a sunroof in a situation where the car could be cooled by other means, while another potential contractor inquired whether a five-speed automatic gearbox would do, only to be told the gearbox would have to have six gears.
Why is Postimees pursuing this isolated case of the Pärnu Hospital? Because leasing of luxurious official cars on the taxpayer's dime is widespread among public sector executives.
Cannot be bothered to protest
Procurements have gone as far as specifying a single manufacturer's unique color code. Car dealers confirm that while procurements of large fleets for use by ordinary public servants prioritize price, no expenses are spared when leasing vehicles for executives.
Companies usually do not bother contesting such procurements as there is little to go on legally. Journalists come across these kinds of interesting procurements relatively rarely as finding peculiar additional requirements takes a lot of research.
Head of the finance ministry's public procurements and state aid department Kristel Mesilane said that pointing out specific products is not customary in leasing tenders. «Vehicle procurements should follow technical specifications as opposed to trademarks,» she said. «Introduction of specific products or trademarks can be an exceptional measure to be used only when specifications cannot be described any other way. I believe it should not be the case concerning cars.»
Mesilane admitted, however, that using products as examples is permitted. „If a concrete product or trademark has been given as an example, it must be complemented by an equivalency clause. The hospital's procurement meets the requirement.
Mesilane also admitted that a specific example could be used to send other manufacturers a signal that their bids are not welcome. «It surely isn't a good practice. It could be a sign of a doctored procurement. While it cannot be claimed as such, it does raise suspicions.»
The requirement for an electric towing hitch also puzzles Mesilane. «If we are dealing with an environmental inspector who needs to tow a trailer to a lake in order to take samples; however, here we have a board member – it is definitely not good practice, and it is obvious a vehicle with concrete specifications is sought,» the expert concluded.