BY OYAOL NGIRAIRIKL
Journal Staff
The Guam Contractors Licensing Board issued to Guam and Aircraft Service International Inc., which does business as Menzies Aviation, a $300,000 fine and ordered the company to cease and desist from performing electrical work after they failed to renew the necessary electrical contractor license.
During the March 28 meeting, board members voted on an initial fine of $300,000, as well as a daily fine of $1,000 until such time Menzies Aviation gets the required license.
Board members initially discussed a $628,000 fine and with it a $5,000 daily fine, but ultimately determined it was excessive.
GIAA has been paying Menzies $78,688 per month since November 2021 under emergency procurement, according to documents read at the meeting.
The legal opinion from the Office of the Attorney General of Guam said the contract awarded to Menzies Aviation did include work that “required that the selected offeror hold a Specialty Contractor license from the CLB in the C-13 Electrical Contractor sub-classification.” Reiterated at the March 28 meeting, was the AG’s opinion that CLB should “begin enforcement proceedings.”
During the meeting, Vincent P. Arriola, who is the ex-officio for the Department of Public Works where he serves as director, wanted to ensure the cease and desist be specific to the complaint filed. “Does that mean stopping operations?” he asked, adding that if Menzies does stop their work then, “Who’s going to make sure the bags don’t come out at the carousel?”
Rena Borja, vice chairwoman of the board; said the order would relate to performing work based on the complaint filed, which is what “our staff has recommended.”
The violation, which had been pointed out by JMI-Edison, is the C-13 electrical license. According to CLB documents, the C-13 designates “a specialty contractor whose contracting business is the execution of contracts requiring the ability to place, install, erect or connect any electrical wires, fixtures, appliances, apparatus, raceways or conduits, and lines which transmit, transform or utilize electrical energy.”
During the meeting board members said the company did have a license at one point but it was unclear why it was not renewed.
According to a March 21 letter from attorney Joseph C. Razano of Razzano Walsh & Torres, P.C., representing JMI-Edison, to GIAA Executive Director John M. Quinata, executive director of the A.B. Won Pat International Airport, Guam; JMI-Edison requested the airport adhere to procurement codes requiring the agency seek licensed services. To that end, JMI-Edison called on GIAA to:
- Immediately inform Menzies they are not allowed to perform further work for the airport after May 14;
- Determine that JMI-Edison should begin to, on an emergency basis, perform work for GIAA beginning May 15;
- Immediately begin discussions with JMI-Edison about starting work as initially designed under the RFP;
- Make a final determination that the only responsible and responsive contractor for the RFP was JMI-Edison, and move forward with finalizing a contract with JMI under the RFP.
The case started shortly after the airport authority issued a request for proposal on July 20, 2021 for the baggage handling system. Menzies and Johndel International Inc., which does business as JMI-Edison, responded to the bid. GIAA selected Menzies as the highest-ranked offeror, according to the Office of Public Accountability decision. GIAA, on Aug. 30, 2021, notified JMI that it had not been selected. The following month, JMI filed a protest. GIAA denied the protest as “untimely” on Sept. 30. JMI appealed the denial of its protest on Oct. 8, 2021. The primary argument was Menzies couldn’t be a responsible bidder because the company lacked a contractor’s license issued by the CLB. JMI President Eduardo R. Ilao also filed a complaint with the CLB, alleging that Menzies lacked a required license.
The OPA ruled against JMI-Edison’s protest on Feb. 3, 2022, following findings related to correspondence between JMI and Cecil Orsini, executive director of the Guam CLB, according to Journal files.
JMI-Edison then filed a lawsuit against the Guam Office of Public Accountability, the A.B. Won Pat International Airport Authority, and Menzies Aviation in February 2022, according to Journal files. JMI-Edison said in court documents that the airport was untimely in its response to a Freedom of Information request as to the licensing status of Menzies Aviation. mbj