OPA affirms DOF-P&S decision on DPH ground maintenance contract

The Public Auditor has affirmed the decision by the Department of Finance’s director for procurement and supply, terminating the contract of a private company for the handling of ground maintenance works at several public health facilities for violation of CNMI procurement regulations.

In a decision released Wednesday, Public Auditor Leo LaMotte ruled that the Procurement and Supply Division of the finance department made the right move when it terminated the ground maintenance services contract with Sen Mauleg Corporation.

“[A]ward to SMC violated CNMI Procurement Regulations, and that the contract should have been properly awarded to 3A’s Ground Maintenance Services, as the lowest responsive and responsible bidder,” said Mr. LaMotte.

“SMC was not the lowest responsive and responsible bidder for this procurement. Termination of SMC’s contract should be done as possible, as should the award of new contract,” he said.

The OPA decision came in the heels of an appeal filed by SMC claiming that 3A’s was not selected by the Commonwealth Health Center’s selection and evaluation committee and that SMC holds a valid contract and denying any remedies upon termination would be a breach of contract terms.

“Our review of CHC’s selection justification showed no valid grounds to deny the contract award to 3A’s. CHC did not raise any responsiveness or responsibility issue against 3A’s, and also failed to show a reasonable basis for the selection of SMC,” the OPA report said.

Also, OPA pointed out that since the awarding of the contract to SMC was a violation of existing CNMI procurement regulations, none of the contract provisions apply.

Mr. LaMotte added SMC’s concerns on the denial of remedies following the termination of its contract with DPH is considered moot since appropriate measures have already been enforced by the Procurement and Supply Division.

In December 1999, DPH solicited bids for outside ground maintenance services at specified public health locations, including the Commonwealth Health Center. SMC was announced winner in the bidding in February 2000.

However, 3A’s filed a protest against the awarding of the contract to SMC. Following a thorough review which disclosed that award of the contract to SMC violated existing laws, the contract was then given to 3A’s, being the lowest responsive and responsible bidder.