OPA releases decision on procurement appeal for manåmku’ meal services


The Office of Public Accountability has released a decision on a consolidated procurement appeal (OPA-PA-19-011 and OPA-PA-20-003) between Basil Food Industrial Services Corporation (Basil) and the General Services Agency. SH Enterprises, Inc. (SH) was an interested party to this appeal.

The appeal was related to the Nutrition Services for the Comprehensive Management, Operations, and Maintenance of the Elderly Nutrition Program, Congregate Meals and Home-Delivered. To view the case in its entirety, please visit https://opaguam.org/procurement-appeals/basil-food-industrial-services-corporation-vs-general-services-agency-2.

The Public Auditor decided the following:

A. BASIL’s protest that SH was not the lowest responsible and responsive bidder in IFB No. GSA-056-19 is untimely and that portion of the consolidated appeal is dismissed.

B. BASIL’s protest that SH failed to include certifications and information related to its April 3, 2019 “C” rating in IFB No. GSA-056-19 is untimely and that portion of the consolidated appeal is dismissed.

C. Basil’s protest that the CPO’s waiver of minimum health inspection grades violated the Procurement Law when the CPO determined that information in the Manåmku’ meals IFB was a minor informality is timely, and BASIL’s appeal to the Public Auditor on such basis was timely. The CPO abused her discretion by granting a waiver of requirements related to food establishment grades because she applied the requirement unequally, thereby prejudicing BASIL. The remedy for the violation is post-award. The contract with SH is to be terminated, and SH shall submit evidence of costs for accounting. SH will be awarded a reasonable profit of $100.00 on top of those accounted costs.

D. BASIL’s protest that SH’s allowing the government to use the Hakubotan building free of rent and utilities was a violation of ethical standards as a prohibited Favor for the Territory and is valid. The CPO erred in concluding that it was a Charitable Donation, which it was not.

E. OPA Appeal No. OPA-PA-20-003 is deconsolidated from this consolidated appeal. A decision, in that case, is pending a hearing on an Order to show cause why SH should not be disbarred or suspended for violation of the Procurement Law’s Ethical Standards.

The Public Auditor also issued an Order to Show Cause to SH Enterprises, Inc. on why it should not be suspended or debarred for breach of Ethical Standards of the Procurement Law by providing a prohibited Favor to the territory.

The parties were informed of their right to appeal the Public Auditor’s decision to the Superior Court within fourteen (14) days after receipt of a final administrative decision.

(OPA News Release)