FOMB to evaluate Xuvo Technologies contract with Health Department
- The San Juan Daily Star
- Aug 5
- 2 min read
By The Star Staff
Executive Director Francisco J. Domenech Fernández of the Puerto Rico Fiscal Agency and Financial Authority is facing criticism for failing to submit the Health Department’s contract with Xuvo Technologies for federal evaluation.
On May 19, 2025, the Department of Health executed a contract with Xuvo Technologies, LLC, to implement a software program on its website for the issuance and renewal of permits, certifications, or licenses. According to the website of the Comptroller’s Office, the contract is set to expire on June 30, 2030, and involves a payment of $5 from the Department to Xuvo for user licenses and services provided. The agency replaced TecSecure with Xuvo amid concerns about data control but did not hold a tender process for Renovacionesonline.
In a letter dated August 1, the Oversight Board stated, “The contract was not submitted to the Oversight Board for its consideration in accordance with the Contract Review Policy established under Section 204(b)(2) of PROMESA.” This policy applies to all contracts or related contracts, including any amendments, modifications, or extensions, with an aggregate expected value of $10 million or more, in which the Commonwealth or any covered instrumentality is a counterparty.
A preliminary review of the contract available on the Comptroller’s Office website revealed that Xuvo can charge a processing fee for each transaction on the Department’s website, ranging from $5 to $20. The Department will deposit these processing fees into a bank account in Xuvo’s name, and Xuvo is responsible for reconciling the amounts.
It is important to note that the basis for determining whether a proposed contract meets the policy’s $10 million threshold is its aggregate expected value, not just the amount paid by the government for the contract.
The Oversight Board emphasized, “Considering the processing fees that Xuvo is entitled to under the contract, the aggregate expected value of the contract is considerably higher than the $5 that the Department shall pay to Xuvo for user licenses and services.” In light of media reports concerning the competitive procurement process for the contract, the Oversight Board requested that the Department submit the contract and all required documentation by August 8, 2025.
This situation raises serious concerns about transparency and proper oversight. Contracts with such high aggregate value should be thoroughly reviewed to ensure accountability and Curve Rush fair procurement practices.