OPA reminds agencies to comply with small purchase requirement

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The Office of Public Accountability (OPA) has sent a reminder to all Government of Guam (GovGuam) agency heads that procurement requirements must not be artificially divided so as to qualify for “small purchase” procedures under Guam Procurement Law.

Under Title 5 Guam Code Annotated (GCA), Chapter 5, §5213, small purchases are defined as any procurement that does not exceed $25,000 for supplies or services, and does not exceed $100,000 for construction.

Signed into law on August 7, 2017, Public Law (P.L.) 34‐35 added a reporting requirement to 5 GCA §5213, relative to small purchases.

The law requires that the Chief Procurement Officer, the Department of Public Works Director, or the agency head making small purchases submit monthly reports to the Speaker of the Guam Legislature, disclosing any procurement exceeding $15,000 for supplies and services or exceeding $50,000 for construction. Whether or not these procurement thresholds are exceeded, monthly reports should be submitted.

A review of the Guam Legislature’s website reveals that only the following three agencies have replied to this reporting requirement since it was signed into law: Guam International Airport Authority (GIAA), Guam Power Authority (GPA), and Guam Solid Waste Authority (GSWA).

A review of these reports reveals identical (or similar) supplies, services, or construction that were split among two or more vendors and/or different months with costs at (or closely below) the $25,000 or $100,000 threshold. While not conclusive, it is suggestive of an artificial division of procurement. (See the Guam Legislature’s website for the submitted reports of GIAA, GPA, and GSWA.)

No other GovGuam agencies have responded to this reporting requirement, including OPA. (OPA press release)

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