The Puerto Rico Court of Appeals recently upheld a decision by the Municipality of Bayamón to disqualify Power Solar, LLC from a request for proposals (RFP) for an energy storage project. The court ruled that Power Solar failed to meet a deadline to complete necessary registration requirements, which is crucial for participating in municipal bidding processes. This ruling affects Power Solar and other companies looking to bid on municipal contracts in Puerto Rico, emphasizing the importance of adhering to regulatory deadlines.
The case, Power Solar, LLC v. Municipio De Bayamón, Global Mechanic Services, Inc., and Maxiservice Al, Inc., was filed under docket number TA2026RA00209. The court's decision was announced on April 30, 2026, by a panel including Judge Sánchez Ramos, Judge Romero García, and Judge Pérez Ocasio.
The dispute arose when the Municipality of Bayamón issued an RFP in March 2026 to acquire portable energy storage systems for a community resilience project. Power Solar submitted its proposal but did not complete the required registration process, which included a $250 fee, within the stipulated ten-day period. The municipality informed Power Solar of its incomplete status and the deadline to rectify it, but the company failed to comply.
Power Solar argued that communications from municipal officials created a legitimate expectation that its proposal would still be considered despite the missed deadline. However, the court found that the municipality's decision to disqualify Power Solar was valid and legally justified.
The court ruled, "the determination of the Municipality to not consider the Recurrente, due to not having complied in a timely manner with the regulatory requirement, is reasonable and compatible with the applicable legislation and regulation." This statement underscores the court's support for the municipality's adherence to its own rules regarding the RFP process.
The ruling confirms that municipal agencies have broad discretion in evaluating proposals and can disqualify bidders who do not meet specified requirements. The court emphasized that agencies are typically in a better position to determine the most qualified bidders and that the evaluation process must be respected unless proven arbitrary or capricious.
The impact of this ruling extends beyond Power Solar. It serves as a reminder to all companies bidding on municipal contracts in Puerto Rico to strictly adhere to deadlines and requirements outlined in RFPs. Failure to do so can result in disqualification, which may hinder their ability to participate in future projects.
This case also highlights the importance of clear communication between bidders and municipal officials. While Power Solar attempted to argue that it was misled by municipal communications, the court determined that the responsibility ultimately lies with the bidder to ensure compliance with all requirements within the specified time frame.
Looking ahead, the ruling could influence how municipalities in Puerto Rico handle RFPs and the expectations placed on bidders. Companies may need to implement stricter internal processes to ensure compliance with municipal requirements to avoid similar disqualifications in the future.
As for the possibility of an appeal, the court's decision can potentially be challenged in a higher court, although details regarding any such plans were not provided in the court filing. There are no related cases currently pending that would directly impact this ruling.