DPW Secretary James Ada in a letter on Friday informed Tang’s Corp. president Kevin Tang that his company’s continued operation under Contract No. 579270-OC had expired.
He told Tang that DPW “cannot have you continue without [a] valid contract in place.”
“Therefore, your operations will cease effective Feb. 29, 2020. DPW will allow you ample time to demobilize and remove all belongings from the Marpi landfill. The department appreciates your understanding in this matter and recognizes your valuable contributions through completing your contract,” Ada told Tang.
In a letter to Ada, Tang said the CNMI government owes his company $667,899.01 for the operation of the solid waste facility.
A significant portion of this amount, Tang added, is long overdue.
He told Ada that his company stopped all the landfill work at 4:30 p.m. of Feb. 29, as directed.
He said all equipment and tools were secured, and the landfill work points have been cleaned.
Tang said he “sincerely hopes” to get DPW’s help in collecting payment from CNMI government.
This includes what the government owes for landfill operation from June 15, 2019 to Oct. 29, 2019 amounting to $348,355.63, and for the three-month contract extension from Oct. 29, 2019 to Jan. 29, 2020 amounting to $235,729.38.
And because his company continued operating the landfill from Jan. 29, 2020 to Feb. 29, 2020, Tang said the government owes him an additional $83,814.
“We would also like to know based on what contract Marianas Environmental Services has begun working at the landfill. If a new contract had been offered, Tang’s Corp. would have submitted a bid, but Tang’s Corp. is not aware of a solicitation for bids. If there was a sole-source award made to MES we do not think that was right, and we will want to know the full basis for the CNMI having made that award,” Tang told Ada.
In a statement to Variety on Tuesday, Ada said DPW issued an “emergency contract” to Marianas Environmental Services LLC “for equipment rental for solid waste management, landfill operations.”
Tang’s Corp. provided this photo of the equipment it used at the Marpi landfill. Contributed photo
He said DPW, with guidance from its legal counsel, “decided that an interim contract at this juncture will best serve the government pending the award of a three-year landfill operation contract; hence, the contract expiration of the current contractor, Tang’s Corporation.”
Ada said the new three-year contract will include a two-year extension clause depending on the performance of the contractor.
The new contract, he added, requires seven different types of equipment, including a landfill compactor.
Furthermore, Ada said, the contractor must have the required personnel with experience and background to perform the various responsibilities stipulated in a request for proposals.
The scope of work includes leachate management and monitoring, operations and maintenance of the vegetative submerged bed or VSB, storm water management, site access maintenance to include fence line clearing and fire prevention and control.
In addition, the contract requires personnel capacity to perform waste disposal identification, load inspection, waste exclusions, and handling of special wastes.
Ada said the emergency contract is a month-to-month contract not to exceed six months pending the selection of a contractor from the five proponents who submitted proposals in response to an RFP a few months ago.
He said DPW’s selection will be reviewed by the procurement director for approval. The contract also requires the signatures of the secretary of Finance, the attorney general, and the governor, Ada added.
The government’s monthly contract with Tang Corp. amounted to $79,000, but Tang said his company has not been paid since June 2019.
When Tang’s contract expired in October, DPW allowed the company to continue operating the landfill for another four months while the proposals of Tang’s Corp. and four other companies were being reviewed.
Two weeks ago, members of the House committees on Public Utilities, Transportation and Communication, Judiciary and Governmental Operations, and Health & Welfare invited Ada and other DPW officials to shed light on some issues involving the landfill that some lawmakers said “may lead to federal sanctions.”
They were particularly concerned about the “inoperable” equipment at the landfill.
But Tang said his equipment is in good condition “except for a very brief time” when the compactor’s engine broke down. It was immediately repaired, he added.
