The tenders committee disqualified a bidder due to a concern of a conflict of interest, without discussing the possible alternatives for neutralizing the alleged conflict of interest.
The Court for Administrative Affairs accepted the bidder's petition and ordered the cancellation of the tenders committee decision and the reversion of the hearing to the tenders committee for rehearing. While managing a tender, the Authority must adhere to the rules of reasonableness, fairness and equality. The rule prohibiting conflict of interest is not absolute and the proper balance must be found between it and other important public interests, such as: increasing competition and the circle of participants in the tender; protection of freedom of occupation, etc. Here, the tenders committee had concerns that the bidder may be in a conflict of interest, but instead of holding a discussion of the alternatives that will enable the bidder's participation in the tender (such as: an arrangement for the prevention of a conflict of interest), the tenders committee chose to disqualify the bidder in the tender. Therefore, the discussion will be reverted to the tenders committee, which will examine the possibility of determining a conflict-of-interest arrangement and only then will a new decision be made on the results of the tender.
For full disclosure, the bidder in this proceeding was represented by Adv. Yair Aloni of Afik & Co.