Sen. William Parkinson has introduced a bill that would change Guam procurement law to end the automatic pausing of the process when a protest is filed.
In November, the groundbreaking for the reconstruction of Simon Sanchez High School was canceled after a bid protest halted demolition.
“Every time we try to modernize our schools, renovate our health facilities, or upgrade power and water systems, we run the risk that our entire community will be held hostage by serial protests. That is not how a modern procurement system should work," Parkinson said in a news release.
Guam law provides that once a timely protest is filed, “the Territory shall not proceed further with the solicitation or with the award of the contract prior to final resolution” and any further action is void. This automatic stay is triggered simply by a timely protest and remains in place through the entire appeal process.
The automatic stay essentially functions as a legal injunction without any requirement to show likelihood of success or irreparable harm.
The bill would change the process, so a stay would be issued only when the public auditor or the Superior Court orders one under a rigorous standard similar to the injunction test used in federal bid protests.
Any protestor must post a bond equal to 2% of the estimated contract value, or $5,000, whichever is greater. If the public auditor or the court finds that the protest was frivolous, malicious, or primarily intended to cause delay, the bond is forfeited to the government.
If the protest is sustained or denied but found to be non-frivolous, the bond is returned.