‘CUC needs to change procurement practices’

Commonwealth Utilities Corp. should take its time during the procurement process and avoid purchasing from the same vendors over and over, according to a group of utility firms that recently evaluated CUC.

QualServe, a voluntary quality improvement program offered by the American Water Works Association, cited procurement regulations as one of the areas in which CUC should improve.

QualServe’s findings are based on a recent on-site visit made by volunteer utility professionals at CUC.

Quoting QualServe, CUC special adviser for corporate communications Pamela A. Mathis said the utility firm was urged to tell its procurement staff “not to go so fast” when selecting vendors or contractors.

She added that the utility must also avoid using the same vendor over and over just because the vendor had satisfactorily met requirements in previous transactions. QualServe recommended that CUC consistently solicit proposals from other vendors who might be able to do a better job or offer better products, Mathis said.

On Feb. 28, 2005, CUC purchasing manager Mariano Fajardo warned non-procurement personnel against interfering in the procurement of goods and services.

In a memorandum, Fajardo said vendors had brought to his attention that CUC personnel, other than procurement staff, had been instructing the vendors to order and deliver goods and services.

“Vendors order goods and perform services in good faith, but are not being compensated in a timely manner. Vendors are very angry because they have not been paid for the items delivered due to a purchase order or contract [not being] processed,” Fajardo said.

He also related one instance where an employee negotiated to get a particular service from a vendor other than the one awarded by Procurement and Supply.

“It is very embarrassing for the corporation to request for the services to be canceled due to an irresponsible employee’s actions, especially when there are actions already taken to remedy the situation

“Should vendors decide to take CUC to court over these matters, CUC can have the responsible individual pay for the materials and damages, and/or take adverse actions against the responsible individual in accordance with the CUC procurement regulations,” Fajardo said.