Eurocontrol Technics Ord EUCTF

RE:RE:RE:little order from SICPA

[Ringert]

kidl2 wrote: I did not hint at it. I “opined” and it was subsequently discussed on SI in early February. It’s  IMO (well, seemingly also in the opinion of others as per the SI posts) a pretty clear cut case ...

Tanzania was called a renewal but was NOT a renewal for two very simple reasons:
 

1. Had the old GFI contract contained a renewal clause, it would not have been put out for tender which it clearly was according to this document which deals with Authentix’s objection to how the tender was handled. https://www.ppaa.go.tz/appealweb/APPEAL.NO.14.2016-17.pdf
2. GFI’s old contract could have only covered the marker supply since the old GFI never supplied any logistics services in the past. SICPA’s new 3 year contract clearly  includes logistics based on the $0.005/ltr which seems to be the “going rate” for all-in contracts.

 
“Allowing” SICPA to count this as a renewal deprives EUO of an estimated US$ 600,000/yr or somewhere around Can$ 2,300,000 in royalty income over the 3 year term. This $2.3 Mil would have essentially been pure profit for EUO since there are no direct costs to EUO.
 
IF this new equipment SICPA just ordered is the “trade-off”, it’s a terrible one for EUO. US$ 250,000 @ lets say a 50% gross margin converted to Can$ amounts to roughly $156,000 or 7% of what EUO would have earned had this been handled “properly”.
 
If someone sees it differently, I’m all ears.

Brucey probably cut a deal with SICPA where a large chunk of that profit EUO is missing out on goes straight to his personal bank account... Wouldn't surprise me.