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CPA proceeding with Tinian terminal project despite suit
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Posted on Jul 09 2004
The Commonwealth Ports Authority is pushing through with the construction of a new departure terminal at the Tinian International Airport despite a lawsuit recently filed by a protesting bidder.
CPA executive director Carlos Salas said his office continues to work with the contractor, AIC Marianas, and the U.S. Department of the Interior on the project, which will be co-funded by the federal government.
Although construction has yet to officially begin, Salas said the contractor has now made “some degree of mobilization” in preparation for the actual building work.
ASC Construction, which entered the lowest bid for the project, sued the CPA last May over the ports authority’s decision to award the project to the second lowest bidder and deny ASC’s appeal.
ASC had submitted the lowest bid of $2.567 million last year, while AIC, which won the contract, entered a $2.651 million bid.
ASC said CPA’s actions were “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with the law.”
ASC also accused CPA of breach of contract in its alleged failure to observe good faith and fair dealing, exposing ASC to damage from loss of profits.
The company asked the Superior Court to set aside CPA’s decision and to order the agency to award the contract to ASC or alternatively, to pay ASC expectative damages and reimburse its costs of bid and protest, as well as attorneys’ fees.
CPA rejected ASC’s proposal because the bidder entered Equitable Insurance Co., which is not U.S. Treasury-listed, as its bonding company. CPA said the exemption for that requirement was not available upon the advise of the Attorney General’s Office.
But ASC said that CPA could have given the construction company the opportunity to select a different bonding company, instead of rejecting its proposal altogether.
