OPA halts probe on CUC bid protest

The Office of the Public Auditor has temporarily halted the investigation of a protest filed by a bidder against the Commonwealth Utilities Corp., following the governor’s May 19 state of emergency declaration.

The bid protest filed by the Commonwealth Industrial Supply Co. Inc. was still pending before OPA when the governor issued the declaration, which among other things, suspended CUC’s procurement and other regulations.

“Based upon the declaration, OPA will not take further action at this time on this appeal. Notice that no further action will be taken by OPA is presumed by provision of a copy of this letter to the interested parties,” public auditor Michael Sablan told Attorney General Pamela S. Brown in a letter.

Sablan also advised Brown to let him know in writing if the Attorney General’s Office believed OPA is allowed or required to initiate further action on CISCO’s appeal.

CISCO is protesting CUC’s decision to award a contract to a foreign company, saying the winning bidder did not follow bid requirements and should have been disqualified.

CISCO, through John C. Jones, filed the original protest on Feb. 28. CUC denied the protest on March 30 upon finding that CISCO’s claims had no merit. The protester then appealed the decision to OPA on April 12.

According to CISCO, the winning bidder violated at least four provisions of the bid for the purchase and installation of anchor bolts for one of the generating engines in the CUC power plant.

MAN B&W Singapore allegedly did not submit the required business license; excluded inbound freight on all parts and equipment necessary to perform the work; excluded import customs duties from their bid; and made CUC responsible for the entry permits for their work staff.

“Any of [these four] reasons should have automatically disqualified the bid from that company. This bid was an Invitation for Bid, not a request for proposals, and as we understand the regulations, no exceptions may be made from the published bid specifications. To do so should result in disqualification,” Jones said in the original protest.

Further, CISCO maintained that it should have been given preference in the bid, as its firm was locally incorporated and licensed.

In response, CUC executive director Lorraine Babauta said off island businesses were not required to submit a business license for a bid. She also belied that MAN B&W Singapore committed the three other violations alleged by CISCO.

Public Law 11-87, or the “Local Preference Act,” does not apply to government corporations, Babauta said. Therefore, CISCO is not entitled to local preference under this law.