Directors told ‘share the wealth’ — rotate vendors for micro purchases

Pago Pago, AMERICAN SAMOA — Chief Procurement Officer, Ti’alemasunu Dr. Mikaele Etuale has informed executive branch directors to rotate vendors for “micro purchases” valued at up to $3,500. And the move is applauded by owners of small businesses hoping to get a share of the money the government spends on local purchases.

“Effective immediately,” wrote Ti’alemasunu in an Oct. 12th memo to directors, the “simplified small purchase procedures,” as noted in the American Samoa Administrative Code for any procurement not exceeding $10,000 is as follows:

•           Requirements with a dollar value up to $3,500 are considered micropurchases and are not required to be competed for. Departments will however be required to rotate the vendors. 

•           Requirements with a dollar value of $3,500.01 to $10,000.00 are required to be competed for by soliciting three (3) quotes to be submitted with the purchase requisition (PR). 

•           Procurement requirements shall not be artificially divided so as to constitute a micropurchase or small purchase and circumvent other source selection rules.  

Ti’alemasunu explained that competition is the best way to make sure that the resulting purchase order price does not unreasonably favor either ASG or the vendor, and in fact results from the impartial working of the marketplace.

“It ensures that ASG pays, and the vendor receives, prices representing reasonable payment for the goods/ supplies received or work performed,” he wrote to directors. “ASG should not pay unfair prices and the vendor should not realize exorbitant profits.”

As word went out to the business community about Ti’alemasunu’s memo, three business owners, contacted by Samoa News for reaction, said that small business owners are “very pleased” that directors are been reminded to “rotate” vendors on certain purchases.

“It’s about time something is done so that all businesses, especially the small businesses, benefit from ASG purchases and not just vendors who are favorites of a director,” said a businessman, who went further with complaints regarding past years, when his business “rarely” got a share of the ASG pot of money for purchases — especially those less than $10,000.”

The businessman, who contacted Samoa News and asked not be identified by name said “some of us business owners, are hoping that this new Administration will do justice for the small business owners by being fair all the time. And this is a great start.”

Meanwhile, the Office of Procurement announced in a “Notice of Intended Action” to amend provisions of current regulations to clarify the procedure for appealing the decisions of the Chief Procurement Officer.

It noted that the Fono approved the Administrative Law Judge Act of 1998, that includes provisions which give the Administrative Law Judge (ALJ) the jurisdiction, “To take appeals of procurement officer’s final decision in a procurement bidding dispute...”

The 1998 ALJ law also repealed the provision of the statute that the governor appoint a three member board to hear disputes of matters pertaining to procurement disputes.

In order to carry out the Legislature’s mandate, the Office of Procurement is moving to amend provisions of the American Samoa Administrative Code — the ASG regulations — in which appeals of the procurement officer’s decision is heard by the Administrative Law Judge.

Interested persons who wish to submit comments or request a hearing on this matter may submit comments to Sapi Ma’o-Ena at the Procurement Office in Tafuna by email [[email protected]] or by mail at Office of Procurement, American Samoa Government, Pago Pago, AS 96799 by Nov. 3, 2021.

The notice of intended action is dated Oct. 8th and approved by Ti’alemasunu on Oct. 13th.