The project range is from $1 million to $5 million.
The Program Management Unit, or PMU, presented its bidding instructions for the construction of one new school in each of these municipalities.
Marcelino Actouka, PMU contracting officer, welcomed all participants and introduced Gary Wiggins, the PMU contracting officer representative, to outline the bidding instructions that the construction companies will have to comply with to take part in the selection process.
In his presentation, Wiggins spotlighted an amendment to the bonding requirements usually expected for these type of projects: the issuance of a performance bond and a payment bond, both for 100 percent of the original contract price.
All contractors present at the meeting expressed their dismay regarding the new bonding requirements. They explained that none of them had been able to obtain such bonds locally.
Actouka explained that the U.S. Department of the Interior implemented this requirement as a result of certain FSM construction projects not having been successfully completed.
Actouka said Interior is hoping local construction companies, in order to obtain bonding, will come to terms with the need to prepare adequate audited financial statements, as well as a proven history of project completion.
Actouka advised that if none of the local contractors could obtain bonding, that in itself will assist PMU in future negotiations with Interior and may allow for waiver requests on a case-by-case basis.
Currently two unbonded local companies, VCS and PLEC, are completing three buildings at Kolonia Elementary School, Nanpei Memorial School, and Madolenihmw High School. These projects are scheduled to be completed in August.
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