OPA affirms decision terminating security contract

The Public Auditor yesterday stood pat on its recommendation to terminate the contract entered into by the government with a private security company due to serious violations of existing Commonwealth law on procurement and supply.

In its decision on the appeal for reconsideration of its earlier decision, the Public Auditor’s Office also called for the issuance of a new solicitation for the project, as it guarantees reimbursement of all the expenses incurred by the company whose contract with the government has been ordered terminated.

Earlier, Public Auditor Leo LaMotte ordered rebidding of the contract for the required security services in three tourist sites managed by the Marianas Visitors Authority that was given to The Wackenhut Corporation.

OPA said this remedy is the most appropriate because the maintenance of confidence in the integrity of the CNMI procurement system outweighs any possible benefit in allowing TWC to continue its contract.

The public auditor added that solicitation of new bids has been recommended because none of the present bidders were found responsive to the Invitation for Bid.

“Additionally, allowing the contract of a nonresponsive bidder to continue could impair the integrity of the competitive bidding process where, as here, the recommended remedy is still very feasible,” said Mr. LaMotte.

In its appeal, TWC mentioned three points that should merit reversal of the public auditor’s previous decision to terminate the contract and re-bid the project.

TWC argued that the OPA erred in its application of the legal standard on bid responsiveness; the three lacking items of information referred to in the decision were not material terms and conditions of the Invitation for Bid; and the company’s bid signified an intent to be bound even without a signature.

However, Mr. LaMotte stressed OPA recommended the termination of the contract with TWC due to the violation of CNMI Procurement Regulations, adding that maintaining confidence in the integrity of local procurement system outweighs any possible benefit from the TWC contract.

“We see no reason to alter our finding that it would not be difficult to implement the remedy set forth in our decision. We do not see how the cost of implementing this remedy would be significant considering that this is a simple service contract,” he said.

OPA said TWC’s arguments have not persuaded the office that its decision contained errors or law, and that it failed to present information that were not previously considered.

“TWC’s arguments are lacking in merit and therefore do not warrant reversal or modification of our decision,” Mr. LaMotte said in OPA’s appeal decision.

All Around Security, Inc. previously filed a protest alleging that the Procurement and Supply Director violated the CNMI Procurement Regulations when TWC was allowed to submit some documents after the opening of the bid.

TWC failed to submit three pieces of required information which were necessary to determine the acceptability of the bid for the purpose of providing security in MVA-handled tour sites.

OPA has, however, recommended TWC’s contract should not be terminated until the new contractor’s starting date considering the continuing need of MVA for the security service.