The procurement process for the long-awaited construction of the new Simon Sanchez High School has been canceled, with Department of Public Works Director Vincent Arriola stating the move is intended to prevent the project from becoming tied up indefinitely in litigation and procurement challenges.
Guam News Network sought comment from the Guam Department of Education (GDOE) regarding the cancellation, but the agency declined to comment.
A notice sent to the three bidders - Core Tech International (CTI), General Pacific Services Inc. (GPS) and the Guam Education Financing Foundation - states the decision was made in consultation with GDOE and the Office of the Attorney General.
According to Arriola, the procurement was placed under an indefinite stay because of unresolved bid protests.
A separate letter addressed to attorneys representing General Pacific Services detailed three protests filed by the company in 2025. The first, filed Nov. 19, challenged the maintenance of the procurement record. Two additional protests filed Dec. 12 questioned the issuance of a notice to proceed for demolition work and the responsiveness of a competing bidder's proposal.
DPW acknowledged that the project had advanced through evaluations, negotiations and the issuance of a notice to proceed for the highest-ranked proposer. However, officials noted that no final agreement was executed between the government and Core Tech International.
"Although the project progressed through evaluation and into negotiation of final agreement terms and the issuance of a Notice to Proceed prepared for the most qualified offeror, no final agreement was executed by the Government of Guam and CTI," the letter states.
DPW said the three protests triggered an automatic stay under Guam procurement law but were ultimately denied after officials found no violations of procurement statutes.
Regarding the Nov. 19 protest, DPW and GDOE concluded GPS had misinterpreted procurement law requirements concerning the procurement record.
"A procurement record need only be certified complete upon award of a procurement," DPW stated, citing Guam law. "Here, no award was made, therefore the requirement that the record be complete was not in effect as of the date of GPS's protest."
The agencies concluded the allegation that the procurement record was incomplete was without merit.
A second protest challenged a $16.4 million Limited Project Scope Agreement used to initiate demolition work. DPW rejected the claim, arguing demolition was already included in the original request for proposals and was part of the scope evaluated by all bidders.
"Demolition was expressly included in the original RFP scope and all proposers, including GPS, competed with demolition as part of the project," DPW stated referencing the Finance, Demolition, Design, Build. Lease/Leaseback and Insurance Capital Maintenance integrated project.
Officials also rejected allegations that the demolition agreement constituted an unlawful standalone procurement or secret agreement.
The third protest alleged CTI's proposal was nonresponsive because it exceeded the financing cap established under the Ma Kahat Act of 2013. DPW denied the claim, stating CTI was the highest-ranked proposer and the only bidder whose price was opened for negotiations.
"CTI was ranked as the highest-qualified proposer. Only CTI's sealed price was opened and subject to negotiation, exactly as required by the RFP," DPW stated.
According to DPW, CTI executed a conditional acceptance of its proposal Sept. 22, 2025, agreeing to comply with the Ma Kahat Act financing ceiling of $166.4 million before any final contract execution.
Officials further noted that GPS, as a lower-ranked proposer, was not entitled under the procurement process to have its pricing opened or negotiated.
DPW described GPS's objections to CTI's pricing as "a complaint on a path to nowhere."
In explaining the cancellation, DPW, GDOE and the attorney general said the decision was made in the government's best interest and to avoid additional delays.
Officials also cited concerns that provisions within the Ma Kahat Act limit the government's ability to negotiate the most effective and cost-efficient contract terms for the school.
"DPW also finds it necessary to cancel the existing RFP in order to address numerous requirements in the Ma Kahat Act that restrict the Government from formulating the best contract terms for the best facility that will meet the current and future needs of the SSHS student body in a more cost-effective manner," the agency stated.
DPW said maintaining the current procurement could force the government to continue working under outdated statutory requirements that affect the school's design and financing structure.
The joint letter signed by Arriola, GDOE Superintendent Judith Won Pat and Attorney General Douglas Moylan notes that appeals may be filed within 15 days of receipt of the final decision.
Arriola said canceling and restarting the procurement process represents the quickest path toward construction.
"DPW is now preparing to reissue the procurement to close the loopholes GPS used to frustrate construction of SSHS," he said. "DPW intends to issue a new procurement as quickly as legally possible."
He emphasized the cancellation should not be viewed as an acknowledgment of flaws in the procurement.
"This cancellation is not an admission that the procurement was flawed, quite the opposite," Arriola said. "It's a decision to protect students from the much greater risk of having this project tied up in court for years."
Meanwhile, legislation introduced by Gov. Lou Leon Guerrero aimed at limiting future procurement challenges related to the project remains pending before the Guam Legislature.
"This is exactly why procurement reform is necessary," Arriola said. "Critical community projects should not be stopped for months or years by frivolous protests that fail to identify a material violation of law."
He urged lawmakers to act on the measure to help move the project forward.