PUC approves Port Authority contract for Warehouse No. 1 repairs, awards $4.84 million to BME & Sons

The Guam Public Utilities Commission on April 24 approved the Port Authority of Guam’s (PAG) contract award to BME & Sons for repairs to Warehouse Number 1, a 54,000-square-foot facility, at a price of $4,837,223.18.

The commission’s acting legal report said PAG issued Invitation for Bids CIP-2044 in November, received five bids, and identified BME & Sons as the lowest responsible and responsive bidder. The work scope includes architectural, structural, fire-protection, plumbing, electrical and project closeout work, the report said.

The report noted the building—constructed in 1968—has “concrete cracks and spalls throughout the building” and that electrical and fire-protection components have deteriorated. “I found that this contract was prudent and necessary to prevent the further deterioration of the building and to lessen the risk of danger to port personnel as well as port tenants and users,” the report said, recommending PUC approval of the $4,837,223.18 contract.

Dominic Williams, deputy general manager of operations for the Port Authority, told commissioners about mold in portions of the facility and said employees were moved out of some bays for safety. He said about 80 percent of Warehouse No. 1 houses port employees and that salt exposure contributed to rebar and concrete corrosion. “So we look forward to your approval and, it’s a very important project for us,” Williams said.

Commissioners asked PAG representatives about bond funding and program priorities. PAG staff said the project will be funded from bond revenues previously identified as capital improvements; they also said some projects originally listed in the bond legislation were reworked to give the port flexibility when it went to market. The report cited Public Law 30-470 as authorizing the issuance of system revenue bonds for port capital improvements.

The contract includes a liquidated-damages clause of $1,000 per day for unfinished work and a five-hundred-forty-day contract term measured from the notice to proceed, according to the report. The staff’s bid breakdown included line items for electrical work (~$1.6 million), fire protection (~$1.1 million), silicone roof coating (~$324,000), painting (~$222,000), and architectural and structural line items.

Commissioner motioned to approve the proposed order affirming the selection of the bidder; the motion was seconded and the commission voted unanimously to approve the contract.

The commission record shows the PUC review was requested because the contract both exceeds $1 million and is to be paid from bond proceeds, which triggers PUC review under its procedures. PAG staff and the commission said the project may also qualify for FEMA reimbursement, subject to PAG’s follow-up with FEMA.