GUAM (Pacific Island Times) — The Guam Economic Development Authority expended a total of $6.1 million on consultant services related to new hospital development based on a contract awarded 10 years ago, according to the Office of Public Accountability.
The expenditures included nine task orders under an improperly solicited contract.
“It is GEDA’s understanding that they were utilizing an IDIQ contract and that they could continue the use of the consultant services indefinitely as long as there was a need and had funding,” OPA said.
However, OPA said GEDA should have clearly defined the type of contract to be used in the RFP and ensure compliance with the RFP and all applicable procurement laws and regulations.
“Should GEDA still require the consultant services, it needs to issue a new RFP immediately and ensure compliance with all applicable procurement laws and regulations,” OPA said.
The OPA found the following noncompliance with Guam Procurement Law and Regulations: procurement of expert consultant services related to new hospital development:
GEDA did not make a written determination for the need of services prior to the issuance of the Request for Proposal (RFP) number RFP 14-008 (Solicitation for Multi-disciplinary professional services to assist with the research, development, planning, and implementation of economic initiatives and opportunities) as required by Guam Administrative Rules (GAR) §3114 (c). The RFP was issued in March 2014, but a written determination was not done until October 2014. This was also after all bids were received and evaluated in April 2014 and the memorandum of ranking and request for fee proposal was sent to the Consultant in May 2014.
GEDA contends it executed an “Indefinite Delivery Indefinite Quantity” type contract, which is not provided for in Guam Procurement Law and Regulations and contrary to the multi-term contract referenced in the RFP and the October 2014 written determination memorandum.
GEDA also failed to fully comply with all requirements in 2 GAR §3121, Multi-Term Contracts.
GEDA utilized the Consultant services beyond the term of the contract indicated in the RFP, which was three years with two two-year options to extend.
This would mean the contract should have been completed and a new RFP and contract issued by Sept. 30, 2021.
However, Task Order 8: Medical and Public Health Services Action Plan was issued June 2, 2021, and is estimated to end on Aug. 31, 2023, and Task Order 9 was issued on Jan. 6, 2023, and is estimated to end on August 31, 2023. We determined expenses for Task Orders 8 and 9 totaling $2 million to be questioned costs.
GEDA did not have a specific “Notice of Intent to Award” in the procurement record, which was determined to be a minor informality.
