The Court of Appeals of Puerto Rico confirmed a decision made by the Mayagüez Municipal Auction Board regarding a public bidding process. This ruling affects local contractors and the way public contracts are awarded in the region. The case, Sellado De Techo La Familia, LLC P/C Su Presidente José Acevedo Crespo v. Junta De Subastas Del Municipio Autónomo De Mayagüez, was filed under docket number TA2026RA00408 and addressed concerns over the auction process for painting municipal properties.
Sellado De Techo La Familia, LLC, represented by its president José Acevedo Crespo, contested the Mayagüez Municipal Auction Board's award of a contract to Graffo Management, Corp. The court's ruling is significant as it reinforces the authority of municipal boards in making decisions about public contracts and emphasizes the standards for evaluating bids in Puerto Rico.
Background
The dispute began when the Mayagüez Municipal Auction Board published an invitation for bids on February 6, 2026, for various projects, including painting buildings and parks. The deadline for submissions was set for March 11, 2026. Four bidders, including Sellado De Techo, submitted their proposals during the auction held on March 12, 2026.
On March 27, 2026, the Mayagüez Municipal Auction Board awarded the contract to Graffo Management, Corp. Sellado De Techo disagreed with this decision and filed a judicial review on June 8, 2026. However, the Mayagüez Municipal Auction Board later argued that the case had become moot because the original award was rescinded on June 12, 2026. The court dismissed Sellado De Techo's initial appeal due to lack of jurisdiction.
After the board issued an amended award notification on July 6, 2026, reaffirming the contract to Graffo, Sellado De Techo filed a new appeal on July 16, 2026. The company raised several errors it believed the board committed during the evaluation and awarding process.
The Ruling
The court ruled in favor of the Mayagüez Municipal Auction Board, confirming the amended award to Graffo Management, Corp. The judges on the panel included Judge Sánchez Báez, who authored the opinion, along with Judges Grana Martínez, Ronda Del Toro, and Lotti Rodríguez.
The court stated, "The determination impugnada refleja que la Junta ejerció su función evaluadora y fundamentó su decisión en que Graffo constituía el postor razonable más bajo y en que su propuesta reportaba mayores beneficios al interés público." This translates to, "The challenged determination reflects that the Board exercised its evaluative function and grounded its decision on the fact that Graffo was the lowest reasonable bidder and that its proposal provided greater benefits to the public interest."
The court found that the Mayagüez Municipal Auction Board appropriately evaluated the bids according to the established guidelines. It emphasized that the board is in a better position to assess the proposals and determine the best bidder based on the criteria set forth in the auction documents.
Impact
This ruling has significant implications for future public bidding processes in Puerto Rico. It reinforces the discretion of municipal auction boards to evaluate bids based on a variety of factors, not solely on price. The court's decision indicates that as long as the board provides a reasonable explanation for its choice, its decisions are likely to be upheld.
Local contractors and businesses should note that the court's endorsement of the board's decision may lead to a more competitive bidding environment. It emphasizes the importance of presenting comprehensive proposals that meet not only the price criteria but also demonstrate the ability to fulfill the contract's requirements effectively.
What's Next
Sellado De Techo La Familia, LLC may consider further legal options, including an appeal to a higher court, although details were not available in the court filing. There are no related cases currently pending that have been mentioned.