AI, clarity, and SOPs possible procurement solutions

BY SKYLER OBISPO AND MAUREEN N. MARATITA
Journal Staff 

Government and private sector leaders addressed challenges and potential solutions for improving the government of Guam’s procurement process during the Government Procurement Summit held June 12 at the Hyatt Regency Guam. 

 Private sector members raised several concerns with Guam’s procurement system; namely issues with clarity, project specifications, and dated documentation processes. 

Boris Hertslet, the program manager at APEX Accelerators, formerly the Guam Procurement Technical Assistance Center, said that a recent study identifying the challenges with GovGuam solicitations revealed the number one problem was the lack of project specifications. 

“Sometimes they’re too specific, sometimes they’re too general, but majority of the issues were the characteristics that are needed for whatever they’re trying to purchase aren’t provided,” he said. 

The other issues identified in the study were delayed payments, lack of centralized electronic system, lack of qualified staff to answer questions, and bid bonds.

Randolph Salas, president of Proferre Inc., said that timelines were also a concern. 

“The longer things take, the more risks involved,” he said. 

Bidders either absorb the risks or incorporate it into their pricing and it becomes a balancing act, Salas said. 

“How much would we [pay for it] ourselves and how much would we push back onto the government, push back onto the taxpayers really.” 

Attorney Joshua D. Walsh, partner at Razzano, Walsh, & Torres P.C., said that the lack of clear answers to bidder questions from government agencies is another bottleneck in the procurement system.  
Sen. Sabina E. Perez said that GovGuam needs to follow “the laws that currently exist”. She referenced Public Law 36-13, a measure she introduced in 2021 that mandates disclosure of ownership, financial, and conflicts of interest under the Guam procurement law. 

Perez said that this would promote competition which would bring the price of government down. 

Planned procurement was another solution that was discussed. 

“Every year we have a budget. We all know what these agencies are going to use that money for, why don’t we have a procurement plan to go with it,” she said. “That would help ensure that things are spent on time.” 

Jerrick Hernandez, auditor at the Office of Public Accountability, added that on top of planning, monitoring is important to bidders. 

Hernandez said that the ability for bidders to monitor GovGuam contracts helps them plan for the future. 

Edward Birn, director of the Department of Administration, said DOA and the General Services Agency have been making progress in digitizing its procurement systems. 

Birn said that the general theme is to try and automate the system as much as possible. 

“Some of the discussions I’ve had with my peers in the United States, they’ve actually used AI a great deal for improving their procurement processes, especially in the area of construction contracts,” he said. 

Birn said that GovGuam needs to first understand how to use the technology before they apply it to the procurement process. 

“Let’s not get stuck again with the old paper processes. Let’s move towards electronic transfer of information.” 

Perez also called for a revamp of GovGuam’s standard operating procedures and regulations alongside many of the summit’s speakers. See: Procurement reform highlighted at Government Procurement Summit.

Benjamin “BJ” Cruz, the public auditor for Guam, was the keynote lunch speaker and shared various thoughts.

OPA monitors and audits the emergency procurement process, ensuring compliance with Guam’s procurement law and regulations. On the emergency procurement process Cruz said, “Proper planning would have told you to start this with an RFP (Request for Proposal) 18 months ago, not 18 days ago.”

Members of the audience took the opportunity to ask Cruz multiple questions and share situations. 

Raj Kumar Parangusam, president and owner of The Laundry Solutions, asked why companies must look for procurement opportunities one by one, saying that all agencies should post in one place. 

Hertslet told the audience the GovGuam Public Notices Portal has government RFPs and a search filter. “Not all of the GovGuam agencies are using that,” he said.

Jay Merrill, president of Market Research and Development Inc., led the Key Takeaways session, the last of the day. 

On procurement, he said, “Concerns exist that don’t reflect the systemic problem.” Merrill said, “There is a great lack of understanding and information on the system itself.  Merrill said it’s not clear if there is even compliance with the procurement system and a lack of information on how to access procurement or how to access bidders. 

He asked attendees, “What is the vision of something that’s going to be successful?”

Ernie Galito, business development and sustainability director at Atkins Kroll Inc. and immediate past chairman of the board of the Guam Chamber of Commerce; told attendees there would be a summary of findings prepared. He called on attendees to send their procurement questions to the chamber. “We’ll immediately try to find an answer to their question,” he said. 

Galito said an information session would also be planned. 

It’s going to be a long journey,” he said. 

Sen. Frank Blas Jr., speaker of the 38th Guam Legislature who launched the Special Legislative Business Policy Review Committee, told the Journal the Government Procurement Summit was one of the initiatives from the committee. See The road to revival: Streamlining business and celebrating CHamoru culture for more details.

Blas said a similar upcoming event will deal with the permitting license process, which businesses have long complained about. See Another step forward: Permit plans to be shared. mbj