OPA Cites DPW for Giving Contracts to Firms That Performed Poorly, And for Preferential Contract Awards

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Guam – The latest audit from the Office of Public Accountability cites the Guam Department of Public Works for continually awarding projects to contractors who perform poorly” and for making preferential awards to 10 contractors.

The audit released today [Monday] reviews the performance of DPW’s “Procurement of Capital Improvement Projects”  from Fiscal Year 2007 to 2009.  During that time period DPW awarded $25.9 million for 566 Capital Improvement Projects [CIP].

Read the Executive Summary of the OPA Audit of DPW’s CIP Projects

Among the findings of the audit:

*$16.1 million in project awards were “not procured in accordance with Guam Procurement laws and Procurement Regulations.

*10 contractors received “preferential selection, receiving $14.1 million or 54% of the $25.9 million in contract awards.

* 262 of the 566 CIP’s, totaling $6.6 million “were not advertised.

*emergency procurement was used to circumvent the competitive sealed bid process, including the purchase of $199,200 spent on “8 sports utility vehicles from a contractor who is not an authorized automotive dealer.”

* documentation was missing on $10.5 million in procurement contracts.

The audit plans conflicting advertising requirements, artificial division of procurement, poor planning and inadequate training of CIP personnel.

The OPA recommends that DPW Director Andy Leon Guerrero:

* immediately prohibit the division of projects as a way to bypass the procurement process

* ensure that projects of similar scope in excess of $25,000 be advertised, as required by law.

*consider revising the law so that it is consistent with the advertising requirements.

*designate the Chief Planner to review all CIP procurements

*establish a suspension and debarment list.

*provide all CIP personnel with procurement training