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CUC, DCM talk to avoid court action
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Posted on Oct 17 2008
The Commonwealth Utilities Corp. is trying to avoid filing lawsuit and is currently negotiating with the Guam-based contractor, DCM Group, which had failed to repair the generators at Power Plant 1 in Lower Base.
In an interview with Saipan Tribune, CUC executive director Antonio Muña said they’re trying to settle the DCM issue in terms of what services the utility agency received and what was paid to DCM.
Muna said they are essentially figuring out how to settle the DCM contract.
He said CUC did not file a lawsuit against DCM as they want to go through a negotiation process.
“We’re sitting down with them and saying, ‘Look, it is in your contract, the deliverables weren’t met. From our side there were some services rendered and we did pay you.’ So, it is about making sure that when we terminated the contract, there are no more claims either from DCM to CUC or CUC to DCM,” Muña said.
He said the Office of the Attorney General is handling the negotiation.
CUC terminated its $5.1 million deal with DCM in July 2008 after the company reportedly failed to repair the generators by a set deadline, as required by the contract.
CUC claimed it has paid DCM over $400,000 already under the failed contract.
The termination of the contract had prompted CUC to issue an emergency request for proposals for overhaul work on power engines 5 and 7 at Power Plant 1.
CUC has also been working again with the Commonwealth Industrial Supply Co. Inc. to rehabilitate its power engines at Power Plant 2.
CUC revisited the contract with CISCO and right now the utility agency has been working with them to get the promised eight megawatts from Power Plant 2, as per the initial contract.
CUC hired CISCO in 2006 to fix the six engines at Power Plant 2. The utility agency signed the contract with CUC without soliciting bids or proposals from any other company. In July 2008, it was reported that CISCO’s work was suspended as only one engine had been made operational.
