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Appeal on Saipan power plant

CUC's determination of competitive proposers not in compliance with regs

(June 19, 1998) - OPA released Decision No. BP-A016 granting in part the appeal filed by Pacific Marine and Industrial Corporation & Ogden Energy, Inc. (PMIC/Ogden), one of the proposers on the 80 MW Saipan power plant. PMIC/Ogden, which was earlier excluded from further participation in this procurement, appealed to OPA after an earlier protest was denied by the CUC Executive Director.

In his decision, the Public Auditor determined that CUC's determination of competitive range offerors (those who were allowed to further compete in this procurement) was not in compliance with CUC's procurement regulations. The decision stated that CUC narrowed the number of competitive range offerors from 13 to 6 based on a cut-off score of 57 points, which was flawed as it was based on erroneous scores. Also, CUC concluded that the 6 proposers whose scores were above the cut-off score were the only ones reasonably susceptible of award. However, one of the committee members stated that twelve out of the thirteen proposals were reasonably susceptible of selection for award.

OPA believed that CUC's methodology did not represent a rational approach to measuring whether a proposal is reasonably susceptible for award. In addition, OPA stressed that there is a need for CUC to re-examine its formula for selecting the top six proposers because its cut-off number of 57 was based on erroneous computation.

OPA recommended that CUC make a redetermination of the competitive range offerors in compliance with the requirements of CUC's procurement regulations, and reinstate in the competition those which should qualify but were earlier excluded from the competitive range.

Download Decision No. BP-A016 (95K)
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