In connection with the information spread in Bulgarian media about the purchase of new cars for the police without any discount, we decided, as automotive specialists, to clarify the topic. The Ministry of Interior (MoI) is on the verge of acquiring an impressive number of 405 off-road vehicles, namely the Skoda Kodiaq model, but the offer raises questions about pricing.
According to publications on the Internet, the huge batch of SUVs for the renewal of the police department's fleet was agreed at a price that seemingly does not include the usual trade discounts expected in such a large-scale public contract.
The analysis is based on publicly available information about the public procurement for 405 4x4 vehicles awarded by the MoI, with one of the ranked participants being Euratec, the official importer of the Skoda brand for Bulgaria.
This move casts a thick shadow on the transparency of public procurement and awakens old disputes about how the funds from the Road Safety Fund, which finances the purchase, are spent.
The accounts show that with a bid of around 135,000 leva excluding VAT per unit of an off-road vehicle, as shown by public data for the separate item, the total value of the deal for 405 4x4 SUVs exceeds 54 million leva (excluding taxes).
Although the Skoda Kodiaq is undoubtedly a proven, reliable and robust SUV, ideal for patrolling in various terrain conditions, the lack of a visible discount for such a colossal quantity of cars causes a strong public resonance. But in fact, this is not the case.
In normal commercial practice, purchasing hundreds of units of one model should result in a significantly more favorable price compared to retail or even individual corporate transactions. In other words, “buying wholesale, but paying retail“ is the phrase that most accurately describes the situation. However, Euratec is making concessions to the Ministry of Interior, and serious ones at that.
Political journalists, trying to find flaws mainly in the Ministry of Interior, do not realize that the police cars in question are being retrofitted with a fairly large number of extras needed by the police.
In conditions of increased public control and constant criticism of the condition of the roads, every penny coming from drivers' fines must be spent with impeccable accountability and maximum efficiency. For this reason, we contacted the official importer of Skoda cars and asked them what exactly the high price is due to.
Is it specific police equipment that makes each jeep a unique specialized vehicle, or is it a matter of a lapse in negotiation? Here is the response of the company that imports Skoda cars in our country, Euratec, which we publish without editorial intervention.
The information provided is not true, and Euratec OOD did not participate in this procurement. One of the brand's trading partners - Bohemia Ekipauto OOD - participated in the public procurement. Since we assisted in obtaining special discounts from the manufacturer (Skoda Auto AD), we are familiar with some of the details and would like to provide the following clarifications, from which everyone can draw their own conclusions about the truth and quality of the journalistic insinuations and suggestions in the biased information presented.
Our response will be extremely brief and based only on the public information published on the website of the public procurement platform – EOP and more specifically at the following link - https://app.eop.bg/today/409148?scrollto=announcements.
On the indicated page of the Ministry of Interior, Protocol No. 3 of the work of the Commission appointed under the relevant public procurement, the procurement documentation and all other documents concerning the procedure are posted.
The platform for conducting public procurement, introduced several years ago, provides an exceptionally good basis for the fair conduct of the procedures, leads to good competitiveness, is distinguished by accessibility, transparency and publicity, and allows for control and verification by all interested and uninterested persons.
In this regard, it is puzzling how journalists with claims to objectivity have not bothered to verify the facts they publish.
On pages 10 and 11 of the indicated Protocol No. 3, the Ministry of Interior employees have quoted verbatim the price offer of the participant Bohemia Ekipauto OOD. It can be clearly established from it – what is contained in the amount of 95,940 leva including VAT, respectively 79,950 leva excluding VAT from the price offer. It includes:
1. Additional technical equipment (generator, additional traction battery, electronics for controlling the distribution of charges, additional charger, power outlets, including the labor associated with the conversion) - worth 2,642 leva excluding VAT.
2. Identification signs - inscriptions, reflective elements - worth 998 leva excluding VAT.
3. Tetra radio terminal with keys - worth 3,595 leva excluding VAT.
4. Special signal lights, loudspeaker and siren - worth 1,490 leva.
5. 4x4 passenger car - worth 71,225 leva excluding VAT.
Now let's pay attention to what is behind the indicated price of the car alone - 71,225 leva excluding VAT or 85,470 leva including VAT.
For comparison, as of the date of submission of the offer, the same car according to the price list, with the additional payments required under the public procurement for an extended warranty, metallic color, LED matrix lights, cost 86,733 leva including VAT.
The participating company received a discount from the manufacturer for the cars of about 15%, but it is important to note that the formed offer price includes three additional costs for:
1. FULL SERVICE MAINTENANCE 8 years/250,000 km.
* T. 10 of the Documentation – Requirements regarding warranty (service) of the cars, in which the Contractor at his own expense provides full service and technical maintenance, including - all periodic maintenance, such as changing engine oil, changing gearbox oil, all filters, brake discs, pads and all necessary parts and consumables for the specified service and according to the recommendations of the manufacturer for the offered period, namely 8 years / 250,000 kilometers.
2. EMERGENCY TECHNICAL ASSISTANCE AND FREE ROADSIDE ASSISTANCE 24/7
* p.10.5.-10.7. of the Documentation - Provision of a help desk for support of on-duty personnel to receive signals 24/7. Emergency technical assistance. Free roadside assistance 24/7 with a 2-hour response time.
3. ADDITIONAL SET OF WINTER TIRES WITH ALUMINUM WHEELS
* Item 34 (from the table) of the Documentation – The vehicle shall be delivered with two sets of tires (winter and summer) mounted on aluminum wheels. The tires must be from an official supplier of the car manufacturer, with a speed index corresponding to the maximum speed of the vehicle.
The value of these three costs requested by the contracting authority is commercial information of the participating company, but according to our calculations, it cannot be lower than 17,000 leva excluding VAT or over 20,000 leva including VAT.
In conclusion, we would like to assure you that the Ministry of Interior has received the best possible financial conditions for the specified technical parameters of the cars, the service and the additional specialized police equipment.
The price provided for the Skoda Kodiaq is 28% lower than the estimated value of the order, which is a saving of over 15.5 million leva.
We consider it extremely ugly and unprofessional to seek public attention with outright lies, partial and incomplete information, manipulated claims.
We expect a public apology from the authors of the journalistic slanders in the media, after which we will consider what our specific reaction should be.