By Haidee V. Eugenio
Variety Assistant Editor

THE installation of 7,000 water meters on Saipan which was supposed to start in 2006 at a cost of some $700,000 hit a snag due to an ongoing procurement protest resulting from the Water Task Force’s decision to re-solicit bids without major changes in the project scope, Variety learned.
The Water Task Force notified Reaction Co. on March 20, 2006 that it would be awarded the contract under IFB06-GOV-003, and that the contractor had until April 14, 2006 to secure bonding.
However, the Water Task Force revised the project’s scope in April, citing changes in its priorities and funding issues, and decided to re-bid the project under IFB06-GOV-097 on July 13, 2006.
Reaction Co., which had the lowest bid of some $700,000, wants to be awarded the contract under the original invitation for bid.
Reaction Co. filed a protest on Aug. 13 and 29, 2006 with the Division of Procurement and Supply, challenging the propriety of the cancellation of IFB06-GOV-003 and the subsequent issuance of IFB06-GOV-097.
The Division of Procurement and Supply director cancelled the original invitation for bid but notice was not given to bidders until Aug. 28, 2006.
The division issued a decision on Reaction Co.’s protest on Dec. 19, canceling the second invitation for bid and directing that the requirements for the original bid be re-solicited should the Water Task Force still require the installation of water meters that were the subjects of the original bid.
Reaction Co. filed a protest decision appeal with the Office of the Public Auditor on Dec. 28.
The company said the Water Task Force failed to follow procurement regulations.
“Reaction Co. does not agree with the letter saying that the Water Task Force’s project was legitimately changed, and requiring the revision of the specifications,” Reaction Co. general manager Noel M. Tolentino said in the Dec. 28 letter to Public Auditor Mike Sablan.
Reaction Co. said the project that was solicited under IFB06-GOV-097 had the same specifications as IFB06-GOV-003, with only changes made to the requirements for certain items, including additional concrete collars around each meter box and a change of pipe fitting size from 3 inches to 4 inches.
The company said the Division of Procurement and Supply looked into the Federal Acquisition Regulations for guidance, they also must look into the FAR Section 14.404-1(a)(3) of the Cancellation of Invitation after opening the bids.
That section states that “as a general rule, after the opening of bids, an invitation should not be cancelled and re-solicited due solely to increased requirements for the items being acquired. Award should be made on the initial invitation for bids and the additional quantities should be treated as a new acquisition.”
“Therefore, Reaction Co. concurs that the…project should be awarded in the same manner as indicated in the FAR regulations,” the company told OPA.
Public Auditor Mike Sablan, on Jan. 3, notified Procurement and Supply Director Herman S. Sablan of Reaction Co.’s appeal, and asked for additional documents and information regarding the water meter project’s procurement.
On Jan. 18, the Division of Procurement and Supply director submitted to OPA the requested documents and information. OPA is now reviewing the appeal.