Clock winds down for best bid tender

The nine companies elevated into the second round of evaluation on the Saipan power project have until tomorrow to express intent to submit their “best and final offers” for review by an independent engineering firm, according to officials.

The Commonwealth Utilities Corporation sent out a letter last week asking them if they are still interested to be included in the next phase which is expected to begin in the next few days.

CUC Executive Director Timothy P. Villagomez and the private legal counsel for the government-owned utility corporation are also set to leave soon to meet with representatives of Burns & McDonnell, the independent evaluator hired in January.

“We are on schedule as far as what was established during the presentation (last March),” said Villagomez in an interview.

The Kansas City-based engineering firm is currently drawing up the final bid package to be presented to the nine firms bidding for the $120 million contract. CUC officials will assist them in finalizing the plan.

When asked how the second evaluation would be conducted in light of the questions raised earlier by some bidders, Villagomez said it will be up to their legal counsel to decide the matter.

“Those are the things that the counsels will have to look at to make sure that we are within the parameters of the (request for proposal),” the utility chief explained, “and what the intent of the second round is.”

CUC officials previously have assured that Burns & McDonnell will be given a free hand to undertake the second phase of review on the proposals that fell within the “competitive range” after the initial round.

Nine companies included in the list — out of 13 — would be asked to submit their “best and final offers” which was based on the recommendation of the independent evaluator made public last month after completing their review.

But Enron International, one of the companies closely competing for the award to build the $120 million project, has raised questions on the procedures, noting that final offers were submitted last year by seven firms which made it during the widely-criticized evaluation conducted last year by the CUC management.

Utility officials have not revealed the guidelines on how Burns & McDonnell would undertake the evaluation, which may include new submission of the final offers and a one-on-one interview with proposers.

According to Villagomez, a report is expected to be made before the Board of Directors by end of next month, paving the way for CUC to forge a deal with the winning contractor by June.

“We hope to get this thing out of the way,” he said. “Maybe by the last part of May, we should have a presentation for the board to make an award.”

The engineering experts were hired by CUC in response to a ruling from the public auditor’s office requiring an independent review of all proposals on the power plant, which the agency stressed is necessary to silence protests against its procurement regulations.

CUC is under pressure from the government to expedite resolution of dispute against its earlier decision to award the contract to the Japanese industrial Marubeni Corp. and its US partner Sithe Energies, Inc. to push the project stalled in the last eight months.

It has since canceled the deal, touted to be the largest deal ever in the CNMI as the 80-megawatt power plant will be built under an independent power producer agreement that will last for the next 25 years.