Sole-source, long-term Marpi landfill contract eyed after OPA modifies order

Department of Public Works Secretary Martin Sablan said the Office of the Public Auditor’s “modified” recommendation—albeit upholding a procurement appeal decision—could pave the way for a sole-source, long-term Marpi landfill operations contract using an “emergency” justification such as endangerment of Saipan residents’ health and safety.

“DPW is now in a position to decide which action to take to get this long-delayed project moving, in consultation with the Procurement and Supply Division. We’re looking at a sole-source, emergency contract with a qualified company,” Sablan told Saipan Tribune last week.

For some 15 months now, DPW has only been “renting” equipment from vendors for the compacting of waste at the federal-funded Marpi landfill instead of entering into a long-term contract for its operation and maintenance.

This is partly because of procurement protest and appeal related to DPW’s request for proposals on the operation of the Marpi solid waste facility.

OPA reaffirmed its findings that DPW’s RFP on the Marpi landfill operations was “flawed” because price or cost to the government was not included in the RFP listing of evaluation factors.

Back in July, OPA granted SARS or Success International Corp’s procurement appeal and directed DPW to cancel the “flawed” RFP.

However, OPA modified its prior order on Oct. 25.

OPA said it “will not direct the method DPW must use pursuant to the CNMI Procurement Regulations to procure the services at issue.”

“OPA recognizes that the agency has important factors to consider, including the ‘health and safety of Saipan’s residents,’ which places the CNMI in a ‘dangerous position’ with regulatory agencies,” said OPA legal counsel Deborah E. Fisher in an Oct. 25 decision concurred by Public Auditor Michael Pai.

The OPA decision, a copy of which was obtained last week, says DPW “is in the best position to consider what type of procurement process is most lawfully under the CNMI Procurement Regulations, in conjunction with P&S, to engage a contractor for Marpi landfill operations.”

After issuing an RFP and evaluating the proposals received, DPW had proposed to award the contract to Tangs Corp.

But SARS/Success International protested this with Procurement and Supply.

Later on, SARS/Success International appealed to OPA on Procurement and Supply’s decision.

Procurement, in rejecting SARS’ earlier protest, said that Tangs Corp.’s certain personnel have been involved in the construction and operation of the Marpi landfill since its inception in 2002, whereas SARS “had no experience in operating a landfill until it obtained the contract for the temporary equipment rental.”

In its modified order on the issue in October, OPA also cited DPW’s April 26 memo to Procurement and Supply when the former requested that an award be made to Tangs Corp.

At the time, SARS had a short-term equipment rental service agreement with DPW because the latter had yet to award a long-term Marpi landfill operations contract as a result of a pending procurement protest/appeal.

DPW’s Sablan said the department’s evaluation of SARS’ waste placement and compaction activities indicates that “improper compaction is being obtained and that application of significantly more soil than required for daily cover is substantially impacting air space availability negatively.”

Sablan said these actions have created “damaging conditions that will impact both the health and safety of Saipan’s residents and place the CNMI in a dangerous position with the U.S. Environmental Protection Agency and the Division of Environmental Quality.”