About canceling the bidding procedure

Outline of cancellation of bidding procedure

History of cancellation of bidding procedure

Recently, when a bid was executed for the periodic inspection and maintenance work of the maintenance and repair machinery for the Koriyama management office ordered by the Company, the unit price list format and the unit price of two out of four bidders were the same. Since it was there, we immediately suspended the bid decision and conducted an investigation. As a result, the unit price of all unit price items in this bid was accepted between the two parties.

Immediately after consulting with a third party (lawyer) in a fair/neutral position, the Company recognizes that the bids of the two parties are not fair and therefore invalidates the bids of the two parties. With the exception of the two parties, it was decided that the bidder who offered the lowest bid price within the contract limit price among the bidders who performed a valid bid will be the winning bidder. In addition, we were preparing to notify the two who were invalidated.

While preparing for notification to the two persons who were invalidated, one of the two persons contacted that "there was an unfair approach from NEXCO EAST employees regarding bidding."

As a result of immediately holding the decision of the winning bidder and investigating the facts with the relevant employees, the following facts have been found so far.

• Before the announcement of the tender, our employees ordered the bidder to divide into small cars and large cars until last year. This year, "a large and small contract will be unified". I talked about that.
• Before announcing the bid, an employee of our company told the bidder what it means to try to place an order.
• After the bidding (prior to the investigation into the doubt about the unit price table), our employee told the bidder that "the unit price is wrong, so I am in doubt."

In addition to the fact that the Company does not ensure the fairness of bids and contracts in the Procurement Procedures, the Company does not ensure the fairness of these tenders and contracts after inquiring about the circumstances and facts from third parties (lawyers) in a fair and neutral position It was judged that it was inappropriate to continue the bidding procedure because it violated the procurement procedure of the above, and decided to cancel this bidding.

We will continue to conduct surveys of our employees, and sincerely accept that such a situation has been caused, strive to prevent recurrence and permeate compliance awareness, and thoroughly carry out procurement procedures in a fair and appropriate manner. I will continue.

[Summary of procurement]

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