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CPA begins cutting down expenses for consultants
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Posted on Oct 16 2006
The Commonwealth Ports Authority has begun to meet with its consultants to inform them of the need to reduce professional service costs.
CPA executive director Clyde Norita disclosed yesterday that the agency spends over $2.5 million for professional services a year.
“I’m meeting with engineering firms, our consultants. Looking at the numbers, we’re trying to figure out how to reduce the cost. CPA, as it is right now, is spending over $2.5 million a year just for professional services,” said Norita.
He said this would mean changing the contract terms to reflect the reduced payments.
“You have to understand, we went to personnel, we reduced the work-hours, we zeroed out all the vacant FTEs. We’ve done out part internally within our people. Now, we’re doing the same with our consultants,” said the official.
“My goal is to make the necessary cuts. Some of the contracts are too high,” he added.
Norita said that if consultants “don’t want to help CPA, we can go shopping somewhere else. I’m working with the consultants to find an amicable solution.”
CPA currently has 15 consultants.
Earlier, the CPA board said that the agency paid $430,000 for legal services alone in fiscal year 2006.
Other obligations include a $256,000 contract with UK-based airline consulting firm ASM for two years, a $79,200 contract with former CPA executive director Carlos H. Salas, and a total of $113,000 contracts with financial consulting firm, Ricondo & Associates Inc.
Ricondo was paid $40,000 for revising the Airline Use Agreement and $73,000 for a study setting new airport rates for the CNMI. Other professional fees are paid to architectural and engineering companies.
