2023 Laws of Puerto Rico › TITLE TWENTY-TWO - Public Works (§§ 1 — 1104) › Chapter 11 - Puerto Rico Electric Power Authority (§§ 191 — 240) › § 205 - Construction and purchase contracts; regulations for presentation of bids; exemption

(1) The Authority and its subsidiaries are exempt from the provisions of the 2011 Reorganization Plan of the General Services Administration of Puerto Rico, including the provisions of Chapter V. The Authority and its subsidiaries shall establish their own procurement and auxiliary service system; and shall adopt the necessary regulations to govern this merger within sound administration and economic standards. If the Authority chooses to avail itself of the aforementioned Reorganization Plan, the provisions thereof, including those related to the Exclusive Register of Bidders, shall not apply to the fuel purchasing procedures to generate power. Furthermore, the regulations to be adopted shall provide for a swift and efficient procurement system.
(a) All purchases made and contracts for supplies or services, except professional services, entered into by the Authority, including its capital construction contracts, shall be made by calling for bids with sufficient time before the date the bids are opened so that the Authority can guarantee proper knowledge and appearance of competitive bidders. Upon comparing proposals and making adjudications, due consideration shall be given to such factors, in addition to whether the bidder has complied with specifications, as to the ability of the bidder to carry out construction work of the nature involved in the contract under consideration; the relative quality and adaptability of the materials, goods, equipment, or services; the financial responsibility of the bidder and his/her expertise, experience, reputation of business integrity and ability to render repair and conservation services; and the deadline for the delivery or performance offered. The Authority may approve regulations for the presentation of bids.
(2) Competitive bidding shall not be necessary:
(a) When the estimated amount for the acquisition or work does not exceed two hundred thousand dollars ($200,000).
(b) An emergency requires immediate delivery of the material, supplies or equipment or the performance of the services.
(c) Spare parts, accessories or supplemental equipment or services are required for previously furnished or contracted equipment or services.
(d) Professional or expert services or work are required and the Authority deems it in the best interests of good administration for such works or services to be contracted without such announcements.
(e) Whenever prices are noncompetitive because there is only one supply source or because the prices of the goods or profit margin of such goods are regulated by law.
(f) When in the judgment of the Board a request for proposals (RFP) process shall be carried out for the acquisition of goods, equipment, supplies, or services to promote greater competition, reduce the risk of collusion, and promote the best possible terms and conditions to achieve greater savings and reduce the operating costs and expenses of the Authority.
(g) When fuel purchased for use in the generation of power in facilities owned by the Electric Power Authority is acquired from foreign governments, organizations, enterprises, agencies, departments, or other entities or corporations, partnerships, or other private enterprises or entities; provided, that the annual volume of fuel to be purchased under this clause shall be of up to one hundred percent (100%) of the estimated annual fuel needs of the Authority. Also, under this clause, the Authority may purchase such crude oil or by-products thereof to be processed by local refineries and use in its generation facilities. The Authority and the local refineries shall negotiate the terms and conditions under which the purchase or processing of said crude oil or its by-products shall be carried out.
(h) In the acquisition of fuel such as, but not limited to natural gas, coal, and crude oil and its by-products that complies with sulfur content standards as required by consent agreements entered into by the Electric Power Authority and the Federal Environmental Protection Agency for the generation of electric power, such acquisition shall be made through the price request process. Acquisitions from any entity, government, and company may be carried out, provided, that the same prove that they have business volumes directly related to the fuel.
(i) When the Electric Power Authority acquires crude oil, its by-products, or natural gas to be processed by refineries and used by the Authority in its generation facilities, the latter and the refineries shall negotiate the terms and conditions under which the acquisition or processing of said crude oil, its by-products, or natural gas shall be conducted.
(j) When the Electric Power Authority contracts an advisor for the acquisition of crude oil or its by-products, which may happen on a month-to-month basis to satisfy the needs of the Authority, in seeking the achievement of economies of scale and better performance under the fiduciary duty set forth in the advisory contract; provided, that the Authority shall establish transparent mechanisms for the acquisition of fuel under this clause for which it shall adopt the necessary regulations.
In such cases covered by clauses (a) through (i) of this subsection, the purchase or acquisition of materials, works, supplies, equipment, parts, accessories, fuel, or the procurement of professional or expert services or works may be made on the open market pursuant to the usual business practices. In the cases covered under clauses (f) through (i), the purchase may be conducted through the Government Development Bank for Puerto Rico.”
(3) The purchase of fuel without requiring bids referred to in clauses (f) through (i) of subsection (2) shall be made pursuant to the following conditions:
(a) That for each purchase or contract, the Authority shall make an analysis on the advantages and benefits to be derived from the contractual relationship between itself and any of the aforementioned entities, governments, and enterprises, and after thus concluding that said purchase is favorable to the public interest.
(b) That every contract for the purchase of fuel executed between the Authority and any of the aforementioned entities, governments, and enterprises, pursuant to subsection (2) of this section, shall be approved by the Government Development Bank for Puerto Rico before its execution in accordance with the regulations to be approved by the Authority to such effects.
(c) That the financing of fuel purchases and the negotiations of the terms of such purchase under the provisions of this section shall be conducted through the Government Development Bank for Puerto Rico (GDB), acting as fiscal agent, in accordance with the parameters established in its organic act and the regulations thereunder. The fixed price insurance coverage for the purchase of fuel to be used for generating electric power in facilities owned by the Electric Power Authority (known as hedging) shall be negotiated by the Government Development Bank for Puerto Rico (GDB) in accordance with the parameters established in its organic act and the regulations approved thereunder.”
History —May 2, 1941, No. 83, p. 684, § 15; Apr. 8, 1942, No. 19, p. 330, § 1; May 23, 1967, No. 39, p. 224; May 27, 1976, No. 59, p. 172; May 12, 1980, No. 46, p. 128; June 18, 1980, No. 148, p. 660, § 2; Aug. 2, 1988, No. 144, p. 603; Aug. 11, 1995, No. 164, § 1; Aug. 17, 2002, No. 194, § 1; Dec. 11, 2011, No. 234, § 1; Feb. 16, 2016, No. 4, § 14.