The Puerto Rico Court of Appeals has upheld a decision by the Junta de Subastas del Municipio de Cayey, affirming the award of a waste disposal contract to EC Waste, LLC. This ruling, issued on July 31, 2026, affects the operations of waste management companies in Puerto Rico and highlights the legal standards governing public contracts.
Platinium Waste Disposal, LLC (PWD) challenged the decision after the Junta de Subastas awarded the contract to EC Waste despite PWD submitting the lowest bid. The court's ruling emphasizes the discretion that public agencies have in selecting contractors based on various criteria beyond just cost.
The dispute began when the Junta de Subastas published a Request for Proposals (RFP) on November 13, 2025, for solid waste collection and disposal services in Cayey. PWD submitted its proposal on December 16, 2025, along with four other bidders. On January 12, 2026, the Junta awarded the contract to EC Waste, citing its experience and operational capacity as key factors in the decision.
After the initial award, PWD filed a judicial review on January 15, 2026, arguing that the decision was flawed. However, the Junta later recognized deficiencies in the initial notification and issued an amended award on June 15, 2026, still favoring EC Waste. This prompted PWD to seek a halt to the execution of the amended award, claiming it was unjustified.
In its ruling, the court stated, "The selection of a contractor does not depend solely on the lowest price but also on a comprehensive evaluation of the criteria established in the bidding documents and those factors that best promote the public interest." The judges emphasized that the decision of the Junta was reasonable and supported by substantial evidence.
The court found that the Junta of Subastas properly justified its decision to award the contract to EC Waste, noting its extensive experience and capacity to provide reliable service. The court also pointed out that the law does not require a detailed analysis of all proposals that were not selected, as long as the reasons for choosing a different contractor are adequately documented.
This ruling is significant for public procurement processes in Puerto Rico, as it reaffirms the principle that cost is not the only determining factor in contract awards. It underscores the importance of evaluating a contractor's qualifications, experience, and ability to meet the needs of the municipality.
The court's decision also highlights the legal protections afforded to administrative decisions, which are presumed to be correct unless proven otherwise. This precedent may influence future bidding processes and the way municipalities evaluate proposals.
Looking ahead, it remains to be seen whether PWD will seek further legal recourse, such as an appeal to a higher court. Currently, there are no related cases pending that could impact this ruling.