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PUC approves GPA strategic program management office contract with $10.5M cap and added safeguards
Summary
The Guam Public Utilities Commission on May 20 unanimously approved the Guam Power Authority’s amended petition to procure a strategic program management office (SPMO) to support upcoming GPA projects at an estimated aggregate cost of $10,500,000, imposing new contractual safeguards and requiring PUC approval before the cap can be exceeded.
The Guam Public Utilities Commission on May 20 unanimously approved the Guam Power Authority’s amended petition to procure a strategic program management office (SPMO) to support GPA’s upcoming capital projects, approving an estimated aggregate cost of $10,500,000 and imposing new contractual safeguards and oversight conditions.
The vote follows PUC legal counsel Anthony’s updated report and proposed order finding the SPMO procurement prudent and necessary after GPA added managerial and contractual controls addressing prior cost-overrun concerns tied to earlier PMO work.
Counsel Anthony told commissioners he initially recommended against approval when GPA’s original filing tied the SPMO price to a 15% assumption of roughly $70,100,000 in projected project costs and left the arrangement as an indefinite-quantity contract. After discussions with GPA…
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