Kautz Glass Co. sues PSS over typhoon shutter contract

The plan of the Public School System to install new typhoon shutters in various schools on Saipan, Tinian, and Rota has reached the Superior Court, with a company protesting a bid decision on the project.

Kautz Glass Co. filed with the court late last week a civil action against the PSS and its commissioner, Rita Hocog Inos.

The suit seeks a court declaration that the contract the PSS had earlier awarded to the company is binding and enforceable. It also seeks an injunction order prohibiting the PSS from disbursing the monies allotted for the contract, or alternatively, an order awarding damages to the Kautz Glass.

In its complaint, the company asserted that the PSS had already awarded the project contract to it after a determination that it was “the most responsible and responsive bidder.”

The company’s attorney, Brien Sers Nicholas, said Kautz Glass and the defendants entered into a contract on April 28, 2005.

Sers Nicholas said that PSS terminated the contract after two other bidders protested its earlier decision to award the contract to Kautz Glass.

The complaint noted that PSS received protests from Eyun Ji Corp. and Carpet Masters on May 4 and 12, respectively. On May 25, the PSS determined that Kautz Glass did not submit the lowest responsive bid, notifying the company that its contract was being terminated.

The following day, Kautz Glass notified the PSS of its protest to the contract’s termination, but the defendants simply affirmed its decision on July 6, according to Sers Nicholas.

The lawyer said his client filed with the Office of Public Auditor a notice of appeal on July 29 after receiving the PSS decision on the contract’s termination. But the PSS decided to award the contract to Carpet Masters despite the pendency of the appeal before the OPA. Sers Nicholas said the PSS notified Kautz Glass and the OPA on Sept. 19 about its intention to award the contract to Carpet Masters.

Sers Nicholas also disclosed communications with the OPA, which showed that the agency would be deciding on Kautz Glass’ appeal without the need for a conference as requested by the company.

“[Kautz Glass’] contract with [the PSS and the commissioner] is a legally enforceable and binding contract with the defendants and, given the facts of this case, cannot and could not terminate the same based on their own conveniences,” Sers Nicholas said.

He accused the PSS and Inos of breaching their contract with Kautz Glass.