The Puerto Rico Court of Appeals ruled against Truenorth, Corp. in a case concerning a contract dispute with the Department of Health. This decision, made on April 16, 2026, confirms the health department's choice of GM Sectec as the contractor for the Puerto Rico Supplemental Nutrition Program for Women, Infants, and Children (WIC). The ruling impacts Truenorth and other companies vying for government contracts, emphasizing the importance of adherence to evaluation criteria in proposal submissions.

The case, identified as TA2026RA00086, arose after Truenorth challenged the Department of Health's decision to award the contract to GM Sectec. Truenorth claimed that the evaluation process was flawed and did not comply with the established criteria. This dispute highlights the complexities involved in government contracting and the necessity for transparency and fairness in the bidding process.

Truenorth, a consulting firm, submitted a proposal in response to a Request for Proposals (RFP) issued by the Department of Health on November 13, 2024. The RFP sought a contractor to maintain and operate technological platforms and software development for the WIC program. On April 2, 2025, the Department of Health announced that GM Sectec had been awarded the contract based on the evaluation of proposals by a designated committee.

Following the announcement, Truenorth filed for reconsideration on April 23, 2025, arguing that the evaluation process lacked essential elements required by the governing regulations. Truenorth alleged that the committee failed to disclose evaluation criteria and improperly assessed the proposals, particularly criticizing the decision to select GM Sectec despite its omission of required compliance documents. The health department initially acknowledged some deficiencies in the notification process but later issued an amended award notice on December 8, 2025, reaffirming GM Sectec's selection.

On December 17, 2025, Truenorth again sought reconsideration, reiterating its previous claims and requesting that the RFP process be declared null. The Department of Health opposed this request, asserting that its evaluation was conducted appropriately and that the committee acted within its discretion.

The court ruled that the Department of Health's process complied with the necessary legal standards. Judge Ortiz Flores, along with Judges Bonilla Ortiz and Martínez Cordero, stated, "The process followed by the Department of Health in the adjudication of the RFP-SP-2024-2025-017-WIC complied with the requirements established in the Administrative Order No. 581 and Law No. 38-2017." The court confirmed that the amended notification included the evaluation criteria and justifications for the decision.

The ruling emphasizes the importance of following established procedures in government contracting. It also highlights the court's deference to administrative agencies, which possess specialized knowledge in their respective fields. The court noted that Truenorth did not provide sufficient evidence to support its claims, stating that the company failed to demonstrate that the agency's decisions were unreasonable or unsupported by substantial evidence.

Looking ahead, this ruling may influence future RFP processes in Puerto Rico. It reinforces the need for transparency and adherence to evaluation criteria in government contracts, which could affect how companies prepare their proposals. The decision also serves as a reminder for agencies to ensure that their evaluation processes are clear and well-documented to avoid disputes.

Truenorth has the option to appeal this ruling, although details regarding any potential appeal were not available in the court filing. The outcome of this case may set a precedent for similar disputes in the future, affecting how contracting processes are conducted in Puerto Rico.