P.R. Laws tit. 21, § 4506
The Board shall handle and adjudicate all bids that are required by law, ordinance or regulations, and in the leasing agreements of any real property or chattels and contracts for services, such as guard, refrigeration equipment maintenance, and others.
(a) Adjudication criteria.— In the case of purchases, construction projects or the rendering of services, the Board shall adjudicate in favor of the lowest bidder. In the case of the sale or lease of real or personal property, it shall adjudicate in favor of the highest bidder. The Board shall make adjudications taking into consideration whether the proposals meet the specifications, the terms of delivery, the bidder’s ability to execute and comply with the contract, the financial accountability of the bidder, his/her business reputation and integrity, the quality of the equipment, product or service and any other conditions that have been included in the bid form. Such adjudication of a bid shall be notified to all bidders by certified mail with return receipt requested. In the consideration of the offers of the bidders, the board may make adjudications by items when the public interest is benefited thereby. The board shall notify the reasons for which they were not awarded the bid to the losing bidders. Every adjudication shall be notified to each of the bidders, informing them of the jurisdictional term of ten (10) days to request a judicial review of the adjudication before the Court of Appeals, pursuant to § 4702 of this title.
The board may adjudicate to a bidder who is not necessarily the lowest or the highest, as the case may be, if it is in benefit of the public interest. In this case, the board shall state in writing the reasons adduced as beneficial to the public interest that justify such adjudication.
(b) Reasons for rejecting bidding forms.— The Board may reject each and every one of the bidding forms received pursuant to a call for bids, when it deems that the bidder lacks accountability or is in debt to a municipality or to the Commonwealth of Puerto Rico, or when the nature or quality of the supplies, materials or equipment fails to meet the requirements indicated in the bidding form, or when the prices quoted are deemed to be unreasonable, or when it is in benefit of the public interest.
(c) Warranties and bonds.— The Board shall require from the bidder the warranties it deems necessary to ensure compliance with the purchase contract and it may fix whatever other terms of the contract, which in its judgment, are deemed necessary, convenient or useful.
In cases of public works and improvements carried out through the bidding process, in addition to what is required in § 4366 of this title, the contractor, shall produce or pay the bonds and guarantees required by the Board to ensure faithful compliance with the contract prior to signing the corresponding agreement.
The Board may likewise fix the amount of the provisional bond to ensure the participation of the bidder in the competitive bidding.
(d) Forfeited bidding.— The Board may declare a bidding as forfeited, and call another or recommend that the municipal legislature authorize that the matter be handled administratively, when the latter is less costly and more advantageous to the municipality’s interests. However, if a bidding is held and only one bid is received, the Board may adjudicate to the single bidder or call a second bidding notifying the single bidder of the reasons for which the bid shall not be awarded to him/her and is considered as forfeited.
When the Board alleges circumstances for not awarding to the single bidder, and, convenes a second bidding and the same situation of a single bidder arises, the Board may award the bid to the single bidder or submit the matter administratively for the authorization of the municipal legislature. In such situation, the Finance Director shall be responsible for the verification and validation of the quote or quotes received to such effects, certifying that such action is the less costly and advantageous for the municipality.
The fragmentation into amounts of lesser value than the real value of a purchase, construction project or sale of property to which the bidding process must apply with the clear intention of adjudicating according to the quotations procedure, shall be deemed contrary to the provisions of this subtitle and its regulations, except in those cases that are clearly stated in the law.
History —Aug. 30, 1991, No. 81, § 11.006; Oct. 29, 1992, No. 84, § 45; renumbered as § 10.006 on Jan. 10, 1999, No. 30, § 3; Aug. 21, 1999, No. 279, § 4; Sept. 7, 2004, No. 258, § 26; Dec. 29, 2009, No. 213, § 1.