Public Auditor denies Case De Felipe appeal regarding manpower services
(May 23, 2003)
In its latest decision, OPA denies appeal filed by Casa de Felipe from the denial of its protest by the Director of the Division of Procurement and Supply pertaining to the solicitation of manpower services for the Commonwealth Health Center under Request for Proposal No. RFP-02-CHC-0092 by the Department of Public Health.
DPH issued Request for Proposal No. RFP-02-CHC-0092, soliciting proposals from qualified manpower agencies to provide specific manpower services for CHC. Casa submitted its proposal in response to the RFP to the Division of Procurement and Supply (“P&S”) on August 22, 2002.
On January 31, 2003, the Director issued his Rejection of the Proposal submitted by Casa de Felipe notifying Felipe Q. Atalig that Casa’s proposal was rejected “as a bid from a non-responsible bidder pursuant to CNMI-PR Section 3-102(11)(d).” Pursuant to CNMI-PR Section 3-102(11)(d), a bid may be rejected if it is from “a nonresponsible bidder as defined in Section 3-301.” Pursuant to CNMI-PR 3-301(1)(d) in order to be determined responsible, a prospective contractor must “have a satisfactory record of integrity and business ethics.” The Rejection was based in part on Atalig’s separation from Government service, conviction of two counts of Assault and Battery, one count of Disturbing the Peace and two counts of Misconduct in Public Office in Criminal Case No. 99-00098 by the CNMI Superior Court, and a finding by the Equal Employment Opportunity Commission (EEOC) that there was evidence against him to support a charge of sexual discrimination. The Rejection also set forth the Director’s concern of the potential risk of liability to CHC and the CNMI Government under a manpower contract with Casa, stating that “an employer other than the employer of record, or nominal employer, can be found responsible for the actions of a non-employee, such as a contractor” under Title VII of the 1964 Civil Rights Act or the Fair Labor Standards Act or both.
On February 2, 2003, Casa filed its Official Written Protest of Bid Rejection (“Protest”). The Protest was supplemented by a letter, Addendum to Protest (“Addendum”), from the Law Office of Perry B. Inos dated February 10, 2003.
On March 21, 2003, the Director issued P&S Protest Decision 03-004 affirming his previous decision of non-responsibility set forth in the January 31st Rejection.
On April 7, 2003, Casa filed its Appeal from the Final Decision of the Director with the Public Auditor.
