Guam public procurement criticised by watchdog

12 Nov 2010

Source:   Supply Management
Major procurement failings by the Department of Public Work (DPW) in Guam have been uncovered by the Pacific island’s Office of Public Accountability (OPA). The independent report highlighted five major issues in procurement processes including the preferential selection of 10 contractors for certain projects and the “artificial division” of $6.6 million of contracts into smaller ones to avoid the need for a bidding process.

From fiscal years 2007 to 2009, the DPW spent $25.9 million on 566 capital improvement projects. An OPA audit of the department’s construction purchasing for this period revealed projects totalling $16.1 million breached procurement regulations. The largest chunk of this ($14.1 million) was the result of preferential treatment of particular suppliers. Procurement failings were the result of “conflicting advertising requirements, the artificial division of procurement, poor planning, and inadequate training of procurement staff”, the audit said.

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