University of Iceland halts parking fee negotiations after complaint from Gulur Bíll in Reykjavik

The University of Iceland and the parking company Parka Lausnir are unable to proceed with contract negotiations regarding parking fees at the university due to a complaint filed by Gulur Bíll ehf., which alleges potential violations of public procurement laws. Initially set to commence this fall, the charging implementation has now been postponed until after the New Year following the ruling.

There were three bids submitted for the parking fee contract. The fee is intended for use of the parking lots from 8 AM to 4 PM on weekdays, with two designated areas: P2 and P3. Holders of disabled parking permits are permitted to park in fee-required spaces without extra charges.

The university appears to have significantly overestimated the costs associated with the parking fee implementation. The complaint ruling stated that the university’s cost estimate was 319 million ISK, while the lowest bid from Gulur Bíll was close to 94 million ISK, followed by Parka Lausnir with a bid of 97 million ISK.

Despite Parka not having the lowest bid, the University of Iceland opted to initiate contract negotiations with them. Gulur Bíll officials protested this decision, claiming the university selected the higher bid due to Gulur Bíll lacking the proper operational permits. Gulur Bíll obtained their permits in August after summer holidays, according to tender documents, while Parka did not meet the specified requirements in the bidding process.

The procurement complaints committee found substantial grounds for a breach of public procurement laws, leading to the conclusion that contract negotiations cannot continue at this stage. Consequently, the parking implementation at the university will not begin until at least after the New Year.