FAA assures fair bidding for Tinian runway project

Regardless of an existing CNMI law on local preference, the Federal Aviation Administration has underscored fairness and objectivity should prevail in the public bidding for the West Tinian International Airport runway project.

This means off-island companies that have signified interests to participate in the bidding of the multi-million-dollar project will have the same chances of undertaking the project as CNMI-based construction firms.

FAA Airports District Office acting Manager Daniel S. Matsumoto cited a provision in the Airport Improvement Project Handbook which guarantees that all procurement transactions should be conducted in a manner providing full and open competition.

Mr. Matsumoto also emphasized that the standards set by the federal agency’s AIP Handbook prohibit the granting of preference to in-state or local bidders in any procurement that involves FAA funds.

The rehabilitation of the runway of the West Tinian International Airport is partially funded by the FAA, which provided at least 50 percent of the project’s total funding needs.

The federal aviation body issued the statement in response to an inquiry by Commonwealth Ports Authority Executive Director Carlos H. Salas on whether the CNMI local preference law is applicable to the Tinian airport runway project.

Mr. Salas said one of the potential bidders posed the question of whether the local preference law is applicable to the Tinian runway project. He sought FAA opinion on the matter since the federal agency is a major source of funding for the project.

Under the CNMI local preference law, government agencies should give preference to local qualified bidders on Capital Improvement Projects involving a contract of more than $5 million, provided that the bid is not more than $15 percent higher than the amount bid by any competing contractor not so qualified.

Public Law 11-87 requires a local bidder to have continuously possessed a valid Commonwealth business license, filed all required Commonwealth employment, excise tax, business gross tax and income tax returns.

However, Mr. Matsumoto pointed out that compliance with FAA regulations on fair contract sourcing is one of the assurances made by the CPA, which was incorporated in the grant agreements for the runway project.

“If the regulation were not complied with, the allowability of the cost of construction would be questioned,” Mr. Matsumoto told ports authority officials in a faxed letter.

Some $17 million in total funds have been made available for the West Tinian International Airport improvement project, almost half of which were sourced out of the Federal Aviation Administration grants.

In July 1999, FAA pitched in additional $3.512 million for the West Tinian International Airport improvement project which marked its fourth grant for the undertaking since September 1998.

The July 1999 grant, brought to $9.387 million the total funds allocated by the FAA for the construction of new runway and improvement of the Tinian international airport.

In addition to the FAA grant, the Commonwealth government has allocated $3.4 million in capital infrastructure project funds for the Tinian air transport facility under the provision of Public Law 11-79 which was signed into law June 1999.