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Committee weighs raising Guam small-purchase threshold to $250,000; GSA recommends $50,000
Summary
Bill 1-34-38 COR would raise the government of Guam small-purchase threshold to $250,000 to speed routine buys; proponents cited hospital supply delays while GSA and others warned about reduced competition and proposed a $50,000 compromise backed by data.
The Committee on Finance and Government Operations held a June 25 hearing on Bill 1-34-38 COR, introduced by Senator William A. Parkinson, to amend Chapter 5, Title 5, Guam Code Annotated by raising the small-purchase threshold for goods and services to $250,000.
Senator Parkinson argued the change would remove ‘‘procurement paralysis’’ that delays routine and sometimes urgent purchases, citing testimony that Guam Memorial Hospital faces multi-month waits for basic supplies. Parkinson said raising the threshold "align[s] us with the federal simplified acquisition threshold" and would let agencies obtain three documented quotes and proceed more quickly.
GSA acting Chief Procurement Officer Adriana Quirigua opposed raising the threshold to $250,000 and recommended $50,000 as a more measured update. Quirigua told the committee that since the fiscal year began GSA processed more than 1,100 requisitions, of which 76 (about 7%) exceeded $50,000; she said raising the small-purchase threshold that dramatically could reduce competitive sealed bidding and public visibility for a larger share of procurements.
Graham Botha, procurement counsel for GSA, noted a December 2023 Office of Public Accountability audit finding (covering 2019–2022) that documentation for required written quotations was missing for some small purchases and said documentation gaps are a concern if more procurements are shifted to informal methods. Botha and Quirigua recommended safeguards if any threshold increase is adopted, including public advertisement above a given level and continuing audit oversight.
Senators pressed for data and specifics. GSA said it routinely solicits up to six vendors to obtain three positive written quotations and creates a written determination when quotes are not available. Committee members discussed whether the proposed change should apply to both supplies/services and construction; current law sets the small-purchase method at $25,000 for supplies/services and $100,000 for construction.
No committee vote occurred. Senators indicated the figure for a revised threshold remains negotiable; several said they would consider a lower increase such as $50,000 to preserve transparency while reducing delays. The committee will accept written testimony for seven calendar days and proceed to markup.
