Early Payment Discount Decisive in UPR Bid Award The UPR’s award of a contract to AE Nova Dist., Inc. for the supply of

Government Contracts
Written By Hans Riefkohl

Early Payment Discount Decisive in UPR Bid Award The UPR’s award of a contract to AE Nova Dist., Inc. for the supply of

goods was upheld by the Court of Appeals of Puerto Rico. Karla Furniture Manufacturing, Inc, the next lowest bidder, asked the intermediate court to overturn the award. Karla argued that it was the lowest bidder when the Act No. 14-2004 preference was considered.

The court disagreed. First, the court was not convinced that some of Karla’s goods were eligible for the Act No. 14-2004 preference. Second, the court concluded that, when the winning bidder’s early payment discount was considered, the winning bidder was the lowest bidder, even if Karla received the Act No. 14-2004 preference it claimed it was entitled to.

In any event, the court also found that Karla did not comply with the bid requirements, as it failed to itemize the cost of all of the goods included in its bid, as was required in the informal invitation to bid.

Hans Riefkohl
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