Hongkong Post has terminated two truck leasing service contracts with local logistics provider Hi-Speed Supply Chain, which was ordered to be wound up by the High Court on Wednesday, involving a total value of HK$30 million.
The contracts, for light truck and 5.5-tonne truck leasing services valued at HK$25.9 million and HK$5.3 million respectively, were awarded in April and December last year.
A Hongkong Post spokesman said it had been closely monitoring Hi-Speed’s service performance and terminated both contracts after the firm failed to meet required standards.
The postal service paid Hi-Speed HK$8 million for the light truck service but made no payment for the 5.5-tonne truck service due to poor performance. Services were not affected as alternative vehicles were arranged while retendering is under way.
Hongkong Post said it followed relevant government procurement regulations for the open tenders. Hi-Speed scored the highest combined marks on technical points and bid price among compliant tenders.
The firm failed a financial assessment for the light truck contract and was required to provide a performance bond of 6 percent of the contract sum, or about HK$1.5 million. It also provided a 2 percent bond, or about HK$100,000, for the 5.5-tonne truck contract.
All additional costs incurred by Hi-Speed’s failure to provide sufficient vehicles will be deducted from the performance bonds, Hongkong Post said.
