A local company, Klaod Solutions inc. has appealed the decision by the Chief Procurement Officer to award the contract for the American Samoa Safe Travel System to Datahouse Consulting Inc of Honolulu.
Klaod Solutions is a company owned by Kenneth and Luisa Kuaea. Its appeal was filed with the Administrative Law Jugde by attorney Thomas B Jones on November 18.
On or about August 2, last year ASG issued a Request for Proposals for the American Samoa Safe Travel System.
The RFP requested proposals for a single portal, multi modular, information management system that would coordinate the safe passage of travelers to and from American Samoa.
The RFP only provided five days to submit a bid for the project with a submission deadline of August 6, 2021.
According to Klaod’s appeal “the exceedingly short timeline belied the fact that the RFP was not intended to attract responsive bids.”
The company says it requested to extend the deadline, which Procurement granted, moving the deadline to August 11.
The appellant contends that despite being local and submitting a bid more than $1 million less, the contract was awarded to off island company Datahouse Consulting Inc for $6.4 million on August 19 “in violation of federal and territorial procurement laws.”
The Safe Travel System, Talofa Pass website went live prior to the announcement of the award, says Klaod Solutions.
Further, this demonstrates that “Datahouse constructed the website prior to the award of the contract, that they had advance knowledge of the RFP and that they would be awarded the contract and demonstrating that the priocruement laws were not followed.”
The appellant cites a whistleblower email it received on August 23 which alleges substantial collusion between the Medicaid Director Sandra King Young and Datahouse Consulting.
According to the email Mrs King Young was being courted by Datahouse in Hawaii then she brought Datahouse executives on a private flight to American Samoa on July 22, 10 days prior to the announcement of the RFP, “under the guise of a test flight for the safe travel system.”
The flight was funded through Medicaid and used covid grant funds.
Klaod’s appeal cites that the only logical purpose for this trip with Datahouse executives was to solidify the award of the contract, allowing the Medicaid director to take Ms Hong Phan, the Datahouse president around American Samoa to meet and visit with ASG officials and to facilities owned by Mrs King Young’s company.
The appeal alleges involvement by the Medicaid Director in Datahouse’s set up and operation in American Samoa.
One alleges that she assisted the Datahouse president in obtaining a business license, a requirement of which was to have a local address or Post Office box to prove residency.
The appeal states that Dept of Commerce whistleblowers said the PO Box on Ms Phan’s business license application belongs to The Medicaid Director.
Klaod Solutions states that on or about August 23 it sent a formal dispute notice to the Office of Procurement and requesting information from the CPO. In a September 30 response the CPO said the information requested could not be provided and that the decision to award the contract to Datahouse was final.
The appellant cites that the actions described in its appeal are “unambiguous violations” of the procurement statues and regulations, in particular that which requires the government to act in good faith on the negotiation and administration of the contract and which prohibit collusion and conflicts of interest between government employees and bidders.
Klaod requests that the Administrative Law Judge:
- overturn the CPO’s decision to award the RFP to Datahouse Consulting and appoint a new Source Evaluation Board to review and evaluate the proposals previously submitted
- award to Klaod Solutions lost profits resulting from the collusive and unethical conduct of ASG officials
- award costs for preparing its proposal that was rejected
- award all costs and reasonable attorney fees and other remedies as deemed proper and just by the ALJ.
