The Puerto Rico Court of Appeals has dismissed a challenge from Unique Security Corporation regarding a contract award for security services by the Junta de Subastas del Municipio Autónomo de Aguadilla. The decision, issued on April 28, 2026, affects Unique Security and potentially other bidders in similar situations, emphasizing the importance of proper procedures in public bidding processes.
Unique Security Corporation sought a judicial review of the award made on April 16, 2026, to West Security Services, Inc. for the General Bid 2027-101 for Security Guard Services. The court ruled that the challenge was premature, as the notification of the contract award was deemed defective, thus impacting the jurisdiction of the court to hear the case.
Background
The dispute began when the Municipality of Aguadilla published a notification for the General Bid 2027-101 on January 10, 2026. Several companies, including Unique Security, submitted their bids for the security services contract. Unique Security offered the lowest bid, which raised questions about the decision-making process of the Junta de Subastas when it awarded the contract to West Security.
Following the bid evaluation, the Junta determined that all bidders met the requirements outlined in the bid notice. However, they recommended West Security based on prior experience with the municipality and the financial consultant's assessment of their operational performance. Unique Security's appeal claimed that the Junta failed to provide adequate justification for not awarding them the contract despite their lower bid.
The Ruling
The court, led by Judge Rivera Torres, ruled against Unique Security, stating that the appeal was presented prematurely. The court explained that the notification issued by the Junta was defective, which meant that the ten-day period for filing an appeal had not begun. The ruling emphasized that a proper notification must include specific details about the bidders, the evaluation criteria, and the reasons for not awarding the contract to unsuccessful bidders.
The court stated, "the notification of the adjudication was defective and, therefore, the term of ten (10) days that the law provides for appealing has not begun to run."
Furthermore, the court highlighted that the failure to provide clear criteria and reasons for the decision obstructed other bidders from effectively exercising their right to challenge the award. The court reiterated the importance of transparency and adherence to procedural requirements in public bidding processes.
Impact
This ruling underscores the necessity for public agencies to follow established procedures when awarding contracts. It emphasizes that failure to provide adequate notifications can hinder the ability of bidders to contest decisions, which could affect future bidding processes. The decision reinforces the legal principle that all bidders must be treated fairly and that their rights to appeal must be safeguarded through proper communication of the decision-making process.
Moreover, the ruling may have broader implications for similar cases in Puerto Rico, as it sets a precedent regarding the importance of jurisdiction in administrative reviews of public contracts. The court's insistence on procedural correctness serves as a reminder to public agencies about their responsibilities in maintaining transparency and fairness in the bidding process.
What's Next
Unique Security may seek to challenge the decision if the Junta issues a new, compliant notification regarding the contract award. The court indicated that once the Junta corrects the deficiencies in the notification, the ten-day period for Unique Security or any other unsuccessful bidder to file an appeal will commence. Details were not available in the court filing regarding any related cases pending.