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No talks yet about possible extension of IPS’ contract
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Posted on Apr 05 2012
The Fitial administration has not yet to decide whether or not to extend the ARRA management contract it awarded to former Commerce secretary Michael Ada’s Integrated Professional Solutions, just a few days before the contract’s April 15 expiration.
Press secretary Angel Demapan said yesterday that the ongoing contract was executed for 18 months with a specific funding source for the stated period.
“At the completion of the contract, a thorough review of the contract deliverables will be conducted,” he said.
Demapan said “to date, there has been no discussion about a contract extension.”
With the American Recovery and Reinvestment Act program winding down, the CNMI has yet to spend some $34 million of $119 million awarded it as of Dec. 31, 2011. The CNMI has the least ARRA funding received among U.S. states and territories.
Recovery.gov data shows that the CNMI was awarded $119 million from Feb. 17, 2009, through Dec. 30, 2011. Of this amount, over $85 million has been spent and $34 million more has yet to be spent or drawn down.
As of yesterday, it’s not known how much exactly in ARRA money has been managed by IPS.
Based on IPS’ contract and the attachments, Ada’s firm was to get an advance payment of $78,418 upon completion of all contract signatures.
The firm will then get paid $15,260 every month starting on Nov. 15, 2010 until April 15, 2012. Upon contract completion, the company will get $39,240.
The contract award triggered a barrage of criticism over the appropriateness and fairness of such sole-source contract award amounting to almost $400,000, considering that the administration had already planned to award the contract even before Ada stepped down as Commerce secretary. It had been investigated by local and federal agencies.
