The Puerto Rico Court of Appeals recently issued a ruling affecting a bidding dispute involving asphalt services in the Municipality of Moca. The court ordered a new notification for the bidding process after finding faults in the original notice. This decision impacts the companies involved in the bidding and highlights the importance of proper notification in government contracts.

The case, known as Renglón Núm. 4 Asfalto Regado y Compactado, was filed under docket number TA2026RA00310. Asphalt Solutions Hatillo, LLC, the company that challenged the decision, argued that the original notice of the bidding was defective and that it had submitted the lowest bid. The court's ruling emphasizes the need for transparency and adherence to legal requirements in public bidding processes.

This dispute began when the Municipality of Moca announced a public bidding process for asphalt services. On April 13, 2026, the bidding was advertised in a local newspaper, and the actual bidding took place on April 30, 2026. Three companies submitted bids for the project: Asphalt Solutions Hatillo, Transporte Rodríguez Asfalto, Inc., and A&M Solutions, LLC. After evaluating the bids, the municipality awarded the contract to Transporte Rodríguez Asfalto, Inc. on May 29, 2026.

Asphalt Solutions Hatillo, LLC was dissatisfied with the outcome and filed a petition for judicial review on June 9, 2026. The company claimed that the notification of the award was flawed and that it had presented the most competitive offer. In response to its concerns, Asphalt Solutions requested an urgent motion to halt any further actions related to the awarded contract until the court could review the case.

The court, led by Judge Adames Soto along with Judges Candelaria Rosa and Campos Pérez, found merit in Asphalt Solutions' claims. The judges noted that the notification of the award did not adequately explain why the other bidders were not selected. The court ruled, "la notificación de la subasta en este caso fue inadecuada, y ello nos priva de revisar la decisión administrativa." This translates to "the notification of the bidding in this case was inadequate, and this deprives us of reviewing the administrative decision."

In its ruling, the court emphasized the importance of proper notification in public bidding processes. It stated that the notification must include essential information, such as the names of all bidders, a summary of their proposals, the criteria used for the award, and the reasons for not selecting the unsuccessful bidders. The court highlighted that a defective notification could prevent affected parties from exercising their right to seek judicial review.

The court's decision means that the Municipality of Moca must issue a new notification that complies with legal requirements. Once this is done, the affected parties will have the opportunity to respond or challenge the decision if they choose to do so. The ruling underscores the necessity for municipalities to follow established procedures when awarding contracts to ensure fairness and transparency.

This ruling may set a precedent for future bidding disputes in Puerto Rico. It reinforces the idea that public entities must adhere to strict guidelines when notifying bidders about contract awards. The decision also serves as a reminder that transparency in government contracting is crucial for maintaining public trust.

Looking ahead, the Municipality of Moca will need to prepare a new notification that meets the court's requirements. Once the new notice is issued, it is unclear if any of the parties will seek further legal action. The case illustrates the complexities involved in public procurement and the importance of following legal protocols to avoid disputes.