Dispute over awarding of €51m Dublin clamping service adjourned to next month

The contract consists of the provision of clamping, relocation, removal, fines, a payment centre and a vehicle pound. File picture: Nick Bradshaw / fotonic

Dublin City Council is asking the Commercial Court to lift a suspension on the awarding of its €51.2m contract for clamping or removing illegally parked cars to a new provider.

Q-Park Ireland Ltd and Dublin Street Parking Services Ltd brought a challenge to the awarding of the new contract to Apcoa Parking Ireland Ltd.

The contract consists of the provision of clamping, relocation, removal, fines, a payment centre and a vehicle pound.

Q-Park, whose parent is Q-Park Holdings BV which is active in a number of European countries, was one of four bidders for the contract. Apcoa had the lowest tender.

Under EU procurement regulations, once a failed bidder lodges a legal challenge to the awarding of the contract, it is then suspended, or at a standstill, until a court decides otherwise.

The contract provider, in this case the city council, can also apply to have the suspension lifted.

Q-Park claims there were unlawful and manifestly erroneous evaluation of tenders in relation to several matters including in relation to day-to-day man operations management, financial management and the implementation plan.

The council denies the claims.

Monday's proceedings

On Monday, Eileen Barrington SC, for the council, applied to have its application to lift the suspension admitted to the fast-track commercial list.

Ms Barrington said there were significant consequences for the public purse in that there would be a saving of between half a million and a million euros a year under the new contract.

There was also the risk that the whole thing could become moot if the suspension remains in place because Apcoa has a contract on a property to be used as a vehicle pound which must be signed by September 30, she said.

Catherine Donnelly SC, for Q-Park, said while she did not oppose the entry of the matter to the commercial list, there was a dispute about the timetable for hearing the matter.

If the suspension was lifted, the damage to her client would be very significant because of the transfer of staff in a new situation. She proposed an alternative timetable to the one suggested by the council.

Mr Justice Rory Mulcahy, admitting the matter to the Commercial Court, said he believed the matter should be heard before the end of this legal term in July and adjourned it for hearing next month. He also joined Apcoa as a notice party to the proceedings.