Terms Used In 5 Guam Code Ann. § 5001

  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
  • Fraud: Intentional deception resulting in injury to another.
(a) Interpretation. This Chapter shall be construed and applied to promote its underlying purposes and policies.

(b) Purposes and Policies. The underlying purposes and policies of this Chapter are:

(1) to simplify, clarify, and modernize the law governing procurement by Guam;

(2) to permit the continued development of procurement policies and practices;

(3) to provide for increased public confidence in the procedures followed in public procurement;

(4) to ensure the fair and equitable treatment of all persons who deal with the procurement system of Guam;

(5) to provide increased economy in territorial activities and to maximize to the fullest extent practicable the purchasing value of public funds of Guam;

(6) to foster effective broad-based competition within the free enterprise system;

(7) to provide safeguards for the maintenance of a procurement system of quality and integrity; and

(8) to require public access to all aspects of procurement consistent with the sealed bid procedure and the integrity of the procurement process.

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(c) Singular-Plural and Gender Rules. In this Chapter, unless the context requires otherwise:

(1) words in the singular number include the plural, and those in the plural include the singular; and

(2) words of a particular gender include any gender and the neuter, and when the sense so indicates, words of the neuter gender may refer to any gender.

(d) Policy Concerning Sheltered Workers or Persons with Disabilities. If any entity of the government of Guam or any entity expending governmental funds intends to procure any supply or service which is offered by a nonprofit corporation employing sheltered workers or persons with disabilities, or a government of Guam entity employing sheltered workers or persons with disabilities, then that entity shall procure such supply or service from that nonprofit corporation or government entity if the supply or service is available within the period required by the procuring entity.

(1) Notwithstanding any other provision of law, any nonprofit corporation or government of Guam entity employing sheltered workers or persons with disabilities that had an existing contract or contract in force on March 1,
2001, with the government of Guam, which shall include line agencies and autonomous agencies of the government of
Guam such as the Guam Power Authority, the Guam
Telephone Authority and the Department of Education, shall continue said contracts for two (2) years hence, ending March
31, 2003.

(e) Procurement of local produce and fish from local farmers and fishermen may be made without competition provided that the farmers or fishermen are registered with the Department of Agriculture and further provided that the prices offered do not exceed the standard of pricing as negotiated by the Department of Agriculture. Any farmer or fisherman awarded a contract pursuant to this section shall not be required to post any of the bonds required under Article 5 of Chapter 5, Title 5, Guam Code Annotated, the Guam Procurement Act.

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(f) Notwithstanding any other provisions of law, procurement of air travel vouchers by the government of Guam, including the legislative, judiciary and executive branches, and all autonomous and semi-autonomous agencies, including the A. B. Won Pat Guam International Airport Authority, the Guam Telephone Authority, the Guam Power Authority, the Guam Housing & Urban Renewal Authority, the Guam Housing Corporation, the Guam Economic Development Authority, the Guam Memorial Hospital Authority, the University of Guam, the Port Authority of Guam, the Guam Rental Corporation, the Guam Community College, the Guam Water Works Authority, the Government of Guam Retirement Fund, the Guam Mass Transit Authority, the Guam Visitor’s Bureau, the Public Defenders Service Corporation, the Guam Educational Telecommunication Corporation, the Guam Election Commission, the Civil Service Commission, the Department of Education, the Guam Environmental Protection Agency and the Guam Vocational Rehabilitation, from local travel agencies with valid business license and on good standing with the Department of Revenue and Taxation shall be rotated fairly and competitively to insure that no single travel agency or a small group of travel agencies monopolize the sale of air travel vouchers to the government of Guam. The Director of the Department of Administration, who shall be responsible in administering this Act as it applies to the executive branch, with representatives from the executive, judiciary and legislative branches shall be responsible, within ninety (90) days from the enactment of this Act, for the development of the necessary rules and regulations to insure that the intent of this Act is followed and implemented by all branches and agencies of the government of Guam and pursuant to the Administrative Adjudication Law. Each branch of the government of Guam, executive, legislative and judiciary, shall be responsible in implementing and adhering to the rules and regulations developed herein in their own respective branches. Failure to procure air travel voucher following the rules and regulations developed herein shall invalidate and render the approved travel authorization null and void and any expenditure shall be completely and totally the responsibility of the traveler and any expenditure the government of Guam incurred shall be reimbursed by the respective traveler. The traveler shall not be reimbursed in

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any manner whatsoever for any of these expenditures. Anyone authorizing such reimbursement shall be guilty of fraud and shall be prosecuted to the fullest extent of the law.

SOURCE: GC § 6950. Model Procurement Code (hereafter – “”MPC””) §1-
101. Subsection (b) amended by P.L. 18-044:25 (Nov. 14, 1986). Subsection (d) added by P.L. 18-015:X:26 (Sept. 25, 1985); amended by P.L. 18-032:5 (Apr. 24, 1986); P.L. 26-031:8 (July 30, 2001). Subsection
(e) added by P.L. 23-018:3 (5/30/95). Subsection (f) added by P.L. 24-
085:2 (Oct. 6, 1997).

2023 NOTE: References to “”Territory”” replaced with “”Guam”” pursuant to 1 Guam Code Ann. § 420.

COMMENT: While it is the intent of the MPC to “”simplify”” state procurement procedures, the effect on Guam will be to somewhat complicate them. This is because procurement law under Executive Order
65-12A on Guam is vague and leaves much to administrative direction. At
least, this Act will regularize and centralize procurement on Guam and, in so doing, attempts to save money for the Territory and make procurement more certain and regular for the vendors.

(1995) The Legislative Intent for the addition of subsection (e) and Chapter
68 of this Title is state to be:

Section 1. Legislative Intent. The Department of Education is required to provide a hot breakfast and hot noon meal to the students in the public schools. The Department of Youth Affairs is required to feed their clients daily. The Guam Memorial Hospital is required to provide nutritional food for its patients. The Department of Corrections must provide three meals a day to each of its inmates. To carry out these mandatory tasks, each of these organizations must procure enormous quantities of fresh fruits and vegetables, as well as other foodstuffs, on a daily recurring basis. To stay within their approved budgets, they each make almost superhuman efforts to obtain this produce from any available source, either from on island or from off island. Since it is the goal of the department of agriculture to promote the efforts of all local farmers and fishermen and to ensure the expansion of the local agricultural, fishing and aquacultural industries, markets must be established and maintained to ensure that the farmers and the fishermen have a viable continuing market for the results of their hard labor. The Department of Agriculture must continue to find local markets for the local produce. Therefore, the department shall be required to work with the various Procurement Officers of the Government of Guam and non- profit organizations which are in the business of feeding people, to maintain a market all year round for the crops of the

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farmers, fishes from the fishermen, and other local producers of foodstuffs. (P.L. 23-18:1)

2009 NOTE: P.L. 28-045:10 (June 6, 2005) changed the name of the
Department of Education to the Guam Public School System. P.L. 30-
050:2 (July 14, 2009) reverted the name of the Guam Public School System to the Department of Education.