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CPA seeks exemption from local preference law
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Posted on Aug 07 2000
The Commonwealth Ports Authority has asked House Speaker Benigno R. Fitial to exempt the agency’s federally-funded projects from a law which provides locals 15 percent advantage over off-island bidders in procurement matters.
According to Executive Director Carlos H. Salas, CPA must comply with the procurement regulations of the Federal Aviation Administration in order to avail its grants.
This means that the ports authority must ensure that all procurement transactions are carried out in full and open competition as provided in the FAA rules, if the agency wants to receive Airport Improvement Program grants.
Senate Bill 12-71, which seeks to amend PL 11-87, has been passed and is now being reviewed in the House of Representatives. Mr. Salas is hoping that the House will seriously take into consideration CPA’s proposal.
Lawmakers wanted to give preference to local bidders on public contracts to help the indigenous-owned businesses cope with the costs of maintaining their operations here.
In seeking an amendment, Mr. Salas recommended the inclusion of a provision which will allow CPA to be exempted from complying with the preferential treatment required under Public Law 11-87 if the project involved federal money either wholly or partly.
The West Tinian Airport Airside Improvement Project is being funded in large part by FAA and prohibits preferential treatment to local bidders.
Mr. Salas warned that unless the ports authority is exempted from Public Law 11-87 for FAA funded projects, the agency would have difficulty accepting federal grants in the future.
