Non Competitive Contract May Have Cost GovGuam $4 Million


Guam – Canon Copiers claims an illegal non competitive ten year old contract between the Department of Education and Xerox corporation, may have cost GovGuam over $4 million for document management services.

John Thos. Brown, the general counsel to Island Business Systems and Suppliers, the authorized distributor of Canon Copiers and Imaging Management says “The contract was illegally granted in the first place, why did they do it, we don’t know, but it wasn’t done properly. “

According to Brown, the Department of Education has acquired all of its copier needs from Xerox through a non competitive process. 

In 2008, Guam’s Public Auditor Doris Flores Brooks ruled that the original contract that was issued to Xerox in 2000 as the sole source was illegal and that the renewal if that contract non competitively in 2004 for five more years was also illegal. Brooks terminated the contract

Brown said IBSS had protested this contract back in 2007 and after nearly four years of significant amounts of time, money and man power cost, IBSS had managed to get DOE to issue a competitive bid for its copier supplies.

According to Brown, IBSS answered a bid in May of this year for the same types of machines that were included in the bid opened on Tuesday. Brown said IBSS was the low bidder, but Xerox won. He said that bid is the subject of an on-going protest because DOE never concluded the solicitation. Brown adds this open bid actually helped GovGuam save about $4 million dollars a year over the next 5 years on DOE’s Budget.

Brown said, “Xerox has been getting paid 133,000 per month for the last 5 years to provide copiers, now that there’s a competitive bid, Xerox is asking for half of it.”

DOE saved $65,000.00 per month on its document management services. He adds when you have competitive specifications and a competitive process that’s open and transparent, GovGuam is a winner.

Brown said, “$4 million dollars in 5 years, just imagine what that would be if you multiply that across the agencies, we would solve out debt. How many buses would that buy, how many school teachers does that get and how many air conditions does that fix. It’s an amazing amount of money

Brown also adds when you do procurement properly, get the competition you are suppose to get, you will get better prices and it will be better off for the people of Guam.

As of news time, the Department of Education was unavailable for a comment.