OPA clears stand on emergency procurement
The Office of the Public Auditor yesterday stood pat on its decision which guarantees full and complete competition among qualified bidders even on emergency procurement by the CNMI government and its agencies under practical circumstances.
OPA’s decision came in the heels of an appeal filed by the Procurement and Supply Division of the Department of Finance, insisting that its earlier ruling may halt the government’s ability to promptly sign a bidder into a contract on emergency cases.
Procurement and Supply Director Herman S. Sablan has argued there is no equity in OPA’s ruling that requires every emergency procurement be awarded not only on the basis of the lowest responsive bid but also to a responsible bidder.
Mr. Sablan pointed out this will destroy the division’s ability to respond to the need for emergency procurement, adding that award to the lowest responsive and responsible bidder in such a case should be made only on certain incidents.
Despite the assertion of the P&S, Public Auditor Leo LaMotte stressed there is no need to modify OPA’s decision since the substance of the reconsideration arguments show basic agreement with the ruling.
“P&S’ reconsideration arguments basically restate OPA’s conclusion in its appeal decision that normal competitive procedures for emergency procurement should be employed when practicable under the circumstances,” Mr. LaMotte said.
The issue stemmed from the awarding of the public work department’s Saipan Anti-Skid Overlay Project to Western Equipment Inc., which did not turn out to be the lowest responsive and responsible bidder.
The Public Auditor has previously ruled that Hawaiian Rock Products Corporation was the rightful bidder, having submitted the lowest responsive and responsible proposal to undertake the project.
Hawaiian Rocks has sought the disqualification of Western Equipment on the ground that it was not a responsible bidder. But OPA denied the firm’s appeal since the project had already been completed then.
It was denied on grounds that the P&S director did not have basis to ignore Western Equipment’s unpaid obligations since it did not submit information on its financial condition, and that the P&S director had the discretion to consider all unpaid obligations from former and ongoing contracts.
Mr. LaMotte explained that choosing the responsible bidder under the particular circumstances in the awarding of the Saipan Anti-Skid Overlay Project was fairly practicable.
“P&S and OPA both agree that normal competitive procedures for emergency procurement should be employed it to do so in practicable under the circumstances,” the public auditor said in denying the DOF appeal.
