Affiliate Financial Capacity Not Relevant to Proposal Evaluation In Nex Gen LLC v. Mun. de San Juan, the Court of Appeals of Puerto Rico agreed with

Government Contracts
Written By Hans Riefkohl

Affiliate Financial Capacity Not Relevant to Proposal Evaluation In Nex Gen LLC v. Mun. de San Juan, the Court of Appeals of Puerto Rico agreed with

the Bid Board of the Municipality of San Juan in that the financial capacity of an affiliate of a proponent cannot be considered

unless that affiliate is also a proponent. According to the bid board’s analysis and evaluation of the proposals, Nex Gen, by itself, did not have the financial capacity to comply with the RFP requirements. As a result, Nex Gen included financial information of an affiliate, Spider Properties LLC.

However, the Bid Board noted that Spider Properties LLC was not a proponent, and Nex Gen’s proposal did not specify what Spider’s participation in the project would be or what responsibilities Spider would assume.

The court also upheld the bid board’s determination that Nex Gen failed to submit a compliant financial proposal, as it did not comply with the minimum monthly payments required under the RFP.

Hans Riefkohl
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