Company challenges fuel supply contract award.

By THE STAR STAFF

Novum Energy Trading Inc. has filed a petition for certiorari with the Puerto Rico Supreme Court, seeking to overturn the award of Request for Proposals (RFP) No. 236096.

The procurement process, conducted by Genera PR LLC on behalf of the Puerto Rico Electric Power Authority (PREPA), resulted in a contract valued at roughly $1 billion for the supply of some 12 million barrels of No. 6 fuel oil to the island’s San Juan, Palo Seco, Aguirre and Costa Sur power plants.

The company asserts that its bid -- priced at $2.67 per barrel -- was significantly more competitive than the $4.75-per‑barrel proposal submitted by Puerto Rico Energy LLC (PRE), the firm selected for the contract. According to Novum, the price disparity represents an estimated $12 million additional cost to Puerto Rico’s public funds.

In its petition, Novum argues that the award process was marred by procedural and substantive irregularities. The company contends that the award notification issued by Genera PR was defective and lacked the information required for the company to file a meaningful request for reconsideration.

Novum also states that the contract with PRE was executed while its reconsideration request was still pending, a move it says violated proper procedural norms.

Additionally, the company challenges what it describes as inconsistencies and contradictions in the technical evaluation phase, noting discrepancies when compared with earlier assessments. Novum further objects to what it characterizes as efforts to enforce advance waivers of judicial remedies -- provisions it argues are contrary to public policy and undermine transparency in public contracting.

The company emphasized that its decision to seek Supreme Court review is grounded not only in the protection of its rights as a bidder, but also in the broader interest of ensuring fairness, equal treatment, and objectivity in Puerto Rico’s public procurement system. In its filing, Novum is asking the court to overturn the award to PRE, invalidate the executed contract, and order a new competitive process in which all proponents are evaluated under equal conditions.