A&M Solutions, LLC, faced a setback when the Puerto Rico Court of Appeals dismissed its appeal against the Municipio de Lajas concerning a municipal auction for asphalt supply. The court ruled that the appeal was premature, as the necessary procedural requirements were not met by the municipal auction board.

This decision affects A&M Solutions and other bidders who participate in municipal auctions, as it emphasizes the importance of following proper notification procedures in such processes.

Background

A&M Solutions, LLC, initiated the appeal on July 30, 2026, to contest a correction notice issued by the Junta de Subastas (Auction Board) of the Municipio de Lajas. This notice, dated July 16, 2026, revoked the initial award of the auction for asphalt supply, which had been granted to A&M Solutions on June 23, 2026. The municipality claimed that the initial award was made in error.

The dispute arose when A&M Solutions was initially awarded the contract based on its compliance with the auction's terms and conditions. However, the municipality later issued a correction stating that the award was retracted due to an administrative error. A&M Solutions argued that the correction notice lacked the necessary details to allow for effective judicial review.

The Ruling

The court, in its ruling, stated, "The Corrección de Notificación y No Adjudicación – Subasta General Núm. 2026-12, Renglón F – Suministro de Asfalto does not include a synthesis of the proposals, the factors or criteria for adjudication, nor the specific reasons why the auction was not awarded to the unsuccessful bidders." This lack of information was deemed a violation of due process, leading to the dismissal of the appeal.

The court emphasized that the notification must include essential information such as the names of the bidders, a summary of their proposals, the criteria used for adjudication, and the reasons for not awarding the contract to other bidders. The ruling was made by a panel that included Judge Rodríguez Flores, Judge Rodríguez Casillas, and Judge Díaz Rivera.

Impact

This ruling has significant implications for municipal procurement processes in Puerto Rico. It reinforces the necessity for municipalities to adhere strictly to procedural requirements when conducting auctions. The court's decision highlights the importance of transparency and due process in public bidding, ensuring that all bidders are adequately informed of the reasons behind the awarding decisions.

Going forward, municipalities must ensure that their notification processes comply with legal standards to avoid similar dismissals in the future. This case may serve as a precedent for other bidders who may feel aggrieved by municipal decisions, as it underscores the need for proper documentation and justification in public procurement.

What's Next

A&M Solutions may seek to refile its appeal once the municipality corrects the procedural deficiencies identified by the court. The case highlights the ongoing challenges in municipal procurement and the importance of following established legal guidelines.