PRESS RELEASE

October 16, 2007
For Immediate Release

ASPA Proud of Procurement Process for Scrap Metal
Removal at the Tafuna Scrap Metal Yard

Mike Keyser, Acting CEO and General Counsel of ASPA said today that “ASPA is very proud of the way in which the Tafuna Scrap Metal Yard bid was prepared, issued, evaluated, and awarded.”

Andra Samoa, the Planning and Special Projects Officer and former CEO at the time, said that“ASPA had several objectives in preparing the bids. First, we wanted to complete the removal of all scrap metal within a two‐year period. The removal of the scrap metal would then enable the American Samoa Government to move forward with its plans and grants to renovate the airport area and generate some revenue. Second, we wanted to ensure that all the bidders were treated fairly.

There were many individuals and vendors that were trying to lobby ASPA Board Members, Officers, and Managers to establish so‐called “partnerships” with ASPA. One of the Managers of ASPA, for example, was visited by a person who said that she was a relative. The Manager had never met her before. Third, ASPA wanted to make sure that the vendor awarded the contract would complete the work in the two year period. In the past, many companies have not delivered to ASPA what they said they would do. That is why a performance bond was required.”

ASPA received fifteen unsolicited proposals from companies to remove and sell the scrap metal and other materials from ASPA’s Tafuna Scrap Metal Yard (“TSMY”). Several of the unsolicited proposals were submitted by companies seeking to bale, transport, and sell the scrap metal and other materials to metal recycling companies in locations as far away as the People’s Republic of China.

In order to ensure an open and competitive process, to clear the TSMY in two years, and to seek a proposal that provides the greatest return to ASPA and American Samoa, ASPA hereby invites sealed proposals from qualified offerors to remove all scrap metal, tires, and all other materials from the TSMY. The removal is to be completed within two years and in accordance with the requirements set forth in this RFP.

Ms. Samoa said, “this was clearly intended to be a fair and open process to benefit American Samoa and it will.”

Although a vendor has complained about the performance bond, “a performance bond,” as noted by Ioana Uli, the Procurement Manager for ASPA, “is a standard tool used by federal, state, and municipal governments. It is also used by private companies and utilities to help guarantee that a bidder or offeror completes work as specified. If the work is not completed on time or in accordance with the specifications, ASPA will attach the performance bond and use the resources to complete the work. It makes the vendors accountable for the work that they say they will do and when it is done.”

With respect to claims that a performance bond requirement discriminated against local vendors, Mike Keyser said that “any credible company should have been able to arrange a performance bond, especially given the claims of the millions that would be generated in revenue. Insurers are in business for themselves and might have charged a percentage point or more if the reputation or experience of a company is not up to par. But, even if a company has problems, there are many other ways that a company could have obtained a performance bond. A company, for example, could have put up collateral and/or pay a higher premium for the performance bond. In either case, an arrangement could have been made. We hope that the Senate inquiry will ask and research which insurers were contacted by the vendors that are making a complaint.”

Ms. Samoa also said that “we are planning to put up a website that allows the people of American Samoa to judge the proposals for themselves. The website will include a copy of the Request for Proposals, Addendum 1 which responds to questions by the bidders, copies of all proposals submitted by the vendors, and a copy of the contract executed with Goodyear. We believe that it is important to see the quality of the Request for Proposals, the professionalism of the review process, and proposals by the bidders.”

Mr. Keyser said that “I hope that the SSIC will respond to the letter sent by the Associate General Counsel of ASPA before Friday.”