CPA adopts procurement rules for projects

The Commonwealth Ports Authority recently adopted two separate resolutions relating to its procurement procedure in an effort to comply with the federal government’s recommendations regarding the Saipan Harbor Improvement Project.

The CPA board of directors resolved to reinstate competitive procurement rules and regulations for construction management services on all CPA projects funded by the federal government.

“Construction management services on all [CPA] projects that are funded in whole or in part by the U.S. government shall be competitively selected with a goal to achieving the most qualified construction management firms at the most reasonable cost to the authority,” a portion of the resolutions read. “[Thus,] the executive director, as contracting officer of the authority, is instructed to enter into no contract for construction management services on a U.S. government funded project without such competitive selection for said services.”

Further, CPA resolved to follow practice and procedures in administering grants from the Federal Aviation Administration under its airport improvement program.

The resolutions were adopted in line with recommendations made by the U.S. Department of the Interior’s Office of the Inspector General on the audit of the Saipan Harbor Improvement Project.

In an audit report issued Sept. 30, 2003, Roger La Rouche, assistant inspector general for audits, urged CPA to reinstate competitive procurement rules and regulations for professional, advisory, and technical service contracts related to federal funds.

This came after the inspector general found that CPA did not adequately analyze or justify contract change orders and incurred $6.9 million in contract cost overruns. CPA also reportedly entered into a noncompetitive contract for construction management services totaling $3.3 million.

La Rouche also recommended that CPA establish policies and procedures to ensure compliance with the conditions of grant awards.

CPA, according to the audit report, improperly used liquidated damages of $980,000 from the Saipan Harbor project for a project on Rota.

CPA executive director Carlos Salas said the ports authority had already complied with these recommendations.

The inspector general, however, “is just looking for an official adoption of the policy so that they [can] close those two findings.”