Sen. Sabina Perez today introduced a bill that would set restrictions on the terms of sole-source contracts "to promote equal and fair competition."
Bill 182-36 would limit the term of a sole-source contract to one year with four successive options to renew and only if there is no other source available at the time of the procurement.
Bill 182-36 seeks to increase accountability and transparency in sole-source procurements by requiring the government to provide reports, market research and justification to be documented in the consideration of a sole-source contract.
Bill 182-36 is co-sponsored by Sens. Joanne Brown, James Moylan, Art San Agustin and Telo Taitague,
“Government procurement must be done carefully with transparency, always with the best interest of our island’s taxpayers in mind. Bill 182-36 is intended to foster competition and maximize the purchasing value of limited public funds,” Perez said.
One of the findings from a recent informational hearing on the government of Guam emergency and sole source procurements was the increasing use of sole-source method for technology and communications.
“As our government streamlines its services through increased automation and use of technology, it is essential to minimize the use of non-competitive practices that can drive up the costs of government. Requiring market research and public notification are best practices that can facilitate greater competition and lower cost to our taxpayers,” Perez said.
“We are stewards of the public funds and finances of the government. We must work for public trust, so whatever can be done to improve accountability, transparency, and efficiency in GovGuam procurement must be done,” Perez said.
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Earlier this year, the 36th Guam Legislature voted to pass Bill 90-36, authored by Sen. James C. Moylan, that would mandate the monthly submission of records and justification reports whenever the government of Guam engages in a sole source or emergency procurement process.
In an earlier statement, Moylan said his bill was prompted by a report released by the General Services Agency, which listed millions in purchases made in 2020 through either a sole source or emergency procurement process. No justification summaries were provided, and some lawmakers had questions, including concerns as to why certain items or services were procured through a sole source process or deemed an emergency.