Governance

The Procurement That Knows No One

Guam has spent 40 years buying its systems one piece at a time from vendors never asked to make the pieces fit. The office meant to fix that already exists, with the mandate and none of the means.

By Samuel S. Kim
September 5, 2026
At the one-stop permit center, an applicant retypes the same name and lot number at six windows, because the systems behind them do not speak. The remedy is a government that builds its own: pooled budgets, engineers hired at market rates, and a single business record that turns the license registry into the vendor registry — and procurement from months into weeks.
This article was published on Kandit News on September 7, 2026.

Upper Tumon, a weekday morning. The Business License and Permit Center was reorganized in 2020 under a name that was a promise: one stop. Inside are six agencies, and a cashier at the end: Public Health, Land Management, Public Works, Revenue and Taxation, the Environmental Protection Agency, the Fire Department, and the Treasurer's window.1 A retail license needs clearances from Land Management, Fire, and Public Works, and from Public Health if food is involved.2 The applicant carries the same name, address, lot number, and description of the business from window to window, and at each one someone types it in again.

The building solved a problem of distance. The problem it was named for was never about distance; it is about systems that do not communicate.

Nearly 20 years ago the Public Auditor tried to count the government's vehicles and found Public Works tracking them on MS-DOS software, while Revenue and Taxation and the Department of Administration kept separate records on separate AS400 machines that could not talk to it.3 By 2016 the same office was calling the central government's financial system, installed in the late 1980s, no way to run a government with more than $1.2 billion in revenues.4 The replacement began going live in 2024 under a 5-year vendor contract costing nearly $31 million; within 3 months, lawmakers were fielding complaints about payroll errors, held-up payments, and vendor fees for upgrades.5

No one was careless. Each agency bought what it could afford, from whoever answered the bid, and asked the vendor to solve that agency's problem. The vendors did. Buying is sometimes right. The failure is that no one was asked to make the pieces fit, and so a dozen systems each work while the whole does not.

The office that exists to fix this is the Office of Technology, a separate agency since October 2018.6 Its authority is to advise and coordinate; not to build, not to fund. And the people it can hire are described by job standards that, until a memorandum proposed updating them last August, had stood since July 1980.7 An entry-level programmer starts at Grade J, $37,913 a year.8 The national median for a software developer in May 2025 was $135,980; the bottom 10 percent earned under $82,460.9 Guam's public pay for the job sits below the floor of the field.

There is a comfortable answer: sell the cause. It works up to a point. At under a third of the going rate, an employer attracts three kinds of people: those with no material wants, those with no financial obligations, and those who had no choice, because a parent or a child needed them home. All three are honorable. A government cannot build its systems on the hope that enough senior engineers happen to have aging mothers in Dededo.

The proposal comes in three parts. First, pool the money. The software and hardware budgets now scattered through the line agencies under the governor should be consolidated in the Office of Technology, so that one office decides how the parts fit before any part is bought, and is answerable for the result.

Second, let the office hire outside the classified pay plan and its recruitment cycle of funding request, announcement, rating, and certification.10 Business analysts, senior engineers, and people who can put language models to work safely are hired in weeks by the firms competing for them, at rates the pay plan does not reach. Singapore's Government Technology Agency built its business licensing portal with its own product team, and cut the questions a new food business must answer from 845 to 90.11 Guam could start with 5 to 10 engineers, 3 to 5 business analysts, 2 or 3 designers, and 3 to 5 testers. Even 20 of them, priced at a developer's national median, cost about $2.7 million a year; 5 years of that, benefits included, is still less than the one contract now running.9

Third, do not wait for the team to be complete. Whoever leads the office must know business analysis, the software development cycle, and how to build with language models, because the early work will be done by hand. That leader should begin now with the smallest piece that proves the whole: a single business record, entered once, that every clearing agency reads. Then the sixth window stops asking for the lot number.

That first piece matters more than it looks. Every vendor the government pays holds a Guam business license, so the registry is already the vendor list; it has never been used as one. And procurement is where slowness costs the most.

One purchase tells the story: wireless networks for the public schools. Bids opened May 28, 2021; the award came July 13; a protest, an appeal to the Public Auditor, and the final ruling followed in February 2022.12 About 9 months, for Wi-Fi, under a statute written for paper, where even the protest window is 14 days.13

The alternative is a system that knows who sells what. A department enters what it needs and the criteria it will judge by. The request is checked for legal defects before it posts, and the Attorney General, whom the law already assigns to any purchase of $500,000 or more, is brought in at the start.14 The system matches the specification against the registry and notifies every business on Guam registered to supply it, by email and text message, at the address and number on file. A vendor logs into the portal it used to renew its license and submits a proposal without visiting any counter.

The box of paper runs the same way at the small end: the law requires three quotes, and the system gathers them, from vendors who have posted prices or chosen to be asked, and files the record no clerk had to make by telephone.14 A simple order closes in 2 days, a service in a week, a construction project in 4 to 6 weeks.

When the window closes, the proposals are scored against the published criteria, and the department's committee receives a recommended award with the reasoning written out. The committee can vote to change it, but the change and its reason travel with the award forever. A vendor who contests receives the same file the committee saw, and so does the Attorney General, with the relevant law assembled, which makes a one-week answer possible. The Public Auditor rules a week after that. Weeks, where there were months.

Korea built this: a single window where a firm registers once and bids on any public contract, with savings one study put near $8 billion a year, most of it to businesses no longer collecting certificates at offices.15 And Guam learned in May why such a system must be built inside the government rather than bought. A flaw in a common web-hosting tool let attackers encrypt and deface government websites. The vendor managing those sites had recommended patches months earlier; the office was waiting on a purchase order to apply them, because the vendor's own support contract was in procurement.16 A government cannot procure its way out of a procurement problem. Procuring a vendor to build the system would take the same months or years and end with the government renting its own process from whoever won. Built inside, with language models now writing much of the routine code, the system belongs to the people who use it, and the next patch is a Tuesday task rather than a solicitation.

Two objections deserve an answer. The first is the machine. Scoring proposals by software sounds like handing public money to an algorithm, and last December Guam created a task force to study exactly that, charged with recommending standards for automated decisions and a right to meaningful human review.17 This design is built to that standard. The software applies the criteria a department chose and shows its work; people decide. That is what the National Institute of Standards and Technology asks of anyone using such tools.18

The second is concentration. One office holding the money, the hiring, and the pipeline for every purchase is a great deal of trust behind one door. The answer is that the door is glass. Every override logged, every award traceable, every pooled dollar published and audited; a sunset makes the arrangement earn its renewal. Concentration in the dark is a danger. Concentration in the light is called accountability.

The timelines and the pay exemption require statute: a bill before the 39th Legislature when it convenes in January. The next administration inherits both the $31 million contract and the building in Upper Tumon.

Anyone who has stood at the sixth window knows the feeling, and it is not anger. It is the quiet suspicion that the system was not built for the person in it. The remedy is a system that requires knowing no one, in which the job follows the work and the license follows the form, filed once.

Guam has spent 40 years buying that system one piece at a time from vendors never asked to make the pieces fit. The office meant to do that already exists, with the mandate and none of the means. Giving it the means is not a technology decision. It is a decision about whether the people at the window are owed a government that knows their name.

Footnotes

  1. Office of the Governor of Guam, "Business License & Permit Center Improves Hours, Services," January 13, 2020, listing the agencies housed at the center. https://governor.guam.gov/press_release/business-license-permit-center-improves-hours-services/

  2. Guam Economic Development Authority, "Establishing a Business in Guam," on the licensing agencies and clearances. https://www.investguam.com/establishing-a-business-in-guam/

  3. Office of Public Accountability, Government of Guam Vehicle Fleet Inventory Performance Audit, OPA Report No. 07-12, October 2007, finding that DPW's MS-DOS-era software could not interface with the separate DRT and DOA AS400 records. https://www.opaguam.org/file/5192/download?token=KwpDXmNI

  4. The Guam Daily Post, "OPA urges GovGuam to address aging financial system," July 9, 2016. https://www.postguam.com/news/local/opa-urges-govguam-to-address-aging-financial-system/article_ba040952-44d2-11e6-9ea2-93863ab6fabe.html

  5. The Guam Daily Post, "5 years to implement new GovGuam system," January 2024, on the first GFMIS release covering financials, payroll, and human resources. https://www.postguam.com/news/local/5-years-to-implement-new-govguam-system/article_a2fea952-aea5-11ee-8575-8b27525f735e.html The Guam Daily Post, "Concerns with new GovGuam financial management system," April 2024, reporting the Performa Inc. contract as a five-year project costing nearly $31 million, and senators' accounts of payroll-deduction errors after the March 1 cutover, held-up contract payments, and vendor fees for upgrades. https://www.postguam.com/news/local/concerns-with-new-govguam-financial-management-system/article_c2a863ce-003f-11ef-9b04-77db5ece1a0e.html

  6. Office of Technology, "About Us," on Public Law 34-76 establishing OTECH as an agency effective October 1, 2018; the advisory and coordination authority is described in the Department of Administration memorandum cited below. https://otech.guam.gov/about-us/

  7. Department of Administration, Human Resources Division, HRD No. 25-121, "Notice of Proposed Amendment, Creation and Abolishment of Positions," August 11, 2025, stating that the computer position standards had not been updated since July 1980 and listing Computer Programmer I at Grade J. https://otech.guam.gov/wp-otech-content/uploads/2025/08/Proposed-Amendment-Creation-and-Abolishment-of-Positions.pdf

  8. Bureau of Budget and Management Research, Government of Guam General Pay Plan (2023 rates), FY2025 budget appendix, Grade J step 1 at $37,913 per annum. https://bbmr.guam.gov/wp-bbmr-content/uploads/2023/11/FY-2025-APPENDIX-E-Part-1-GPP-22-Pay-Scale.pdf

  9. U.S. Bureau of Labor Statistics, Occupational Outlook Handbook, "Software Developers, Quality Assurance Analysts, and Testers," May 2025 wage data: median $135,980; lowest 10 percent under $82,460. Twenty salaries at the median total $2,719,600 a year; $13.6 million over 5 years, or roughly $17.7 million with a 30 percent benefits load. https://www.bls.gov/ooh/computer-and-information-technology/software-developers.htm 2

  10. Department of Administration, Human Resources Division, "Recruitment," describing the funding approval, announcement, rating, and certification steps. https://hr.doa.guam.gov/branches/recruitment/

  11. Government Technology Agency of Singapore, "An inside look at how GovTech reduced 845 form fields to just 90 on the GoBusiness Licensing portal," on the in-house product team that built the portal launched October 31, 2019. https://www.tech.gov.sg/technews/inside-look-at-gobusiness/

  12. Office of Public Accountability, G4S Security Systems (Guam), Inc. vs. Department of Education, OPA-PA-21-007, case file including the parties' filings with the procurement chronology, https://www.opaguam.org/procurement-appeals/g4s-security-systems-guam-inc-vs-department-education and the Public Auditor's decision of February 9, 2022, https://www.opaguam.org/file/11698/download?token=EynOdP5n On the final ruling, The Guam Daily Post, "OPA denies G4S procurement appeal also linked to resigned CLB director," February 2022. https://www.postguam.com/news/opa-denies-g4s-procurement-appeal-also-linked-to-resigned-clb-director/article_0565ba94-8988-11ec-8497-ab80cb933ba9.html

  13. 5 GCA § 5425(a), requiring protests to be submitted in writing within 14 days. Guam Code Annotated, Title 5, Chapter 5 (Guam Procurement Law), as published by Justia from the Compiler of Laws text. https://law.justia.com/codes/guam/title-5/division-1/chapter-5/

  14. 5 GCA § 5150, assigning the Attorney General or designee as legal advisor during all phases of any solicitation estimated at $500,000 or more; 5 GCA § 5213, the small-purchase procedure for supplies and services of $25,000 or less; the three-quotation requirement is set out in 2 GAR Div. 4 Ch. 3 § 3111 and summarized in the Office of Public Accountability's Procurement Executive Summary. https://opaguam.org/sites/default/files/procurement_executive_summary.pdf Statutes from the same source as note 13. 2

  15. Global Partnership for Effective Development Co-operation, "The Korea Online E-Procurement System (KONEPS), 1996–2002," citing Lim (2009) on annual savings of about $8 billion, roughly 80 percent accruing to the private sector. https://www.effectivecooperation.org/sites/default/files/documents/DN_KONEPS_v2a.pdf On one-time registration and access to all public bids, Korea.net, "Sharing with the world, part 5: e-procurement." https://www.korea.net/NewsFocus/policies/view?articleId=142397

  16. Isla Public Media (KPRG), "Office of Technology asks for rapid procurement plan for cyber-emergencies," May 27, 2026, reporting the acting Chief Technology Officer's testimony that vendor-managed GovGuam websites were encrypted and defaced while the vendor's support contract was in procurement, and that the vendor had recommended patches months earlier. https://www.islapublic.org/news/2026-05-27/office-of-technology-asks-for-rapid-procurement-plan-for-cyber-emergencies On the incident, The Guam Daily Post, "Governor confirms GovGuam sites under cyber attack," May 3, 2026. https://www.postguam.com/news/local/governor-confirms-govguam-sites-under-cyber-attack/article_6a643e5b-1915-4c77-a167-550e54d73357.html

  17. Public Law 38-77 (Bill No. 64-38), establishing the Guam Artificial Intelligence Regulatory Task Force, signed December 16, 2025. The Guam Daily Post, "Artificial intelligence task force now law." https://www.postguam.com/news/local/artificial-intelligence-task-force-now-law/article_fbfa8a37-9cb6-4e70-b549-6934cead0b9d.html The Act, at 5 GCA § 16103(a)(4)(vi)–(vii) as added, directs the task force to recommend standards for transparency, auditability, and accountability in automated decision-making, and mechanisms for individuals adversely affected by AI-based determinations to seek meaningful human review, due process, and redress. https://guamlegislature.gov/38th_Guam_Legislature/Public_Laws_38th/Public%20Law%2038-77.pdf

  18. National Institute of Standards and Technology, Artificial Intelligence Risk Management Framework (AI RMF 1.0), January 2023. https://www.nist.gov/itl/ai-risk-management-framework

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GovernanceGuamProcurementTechnologyGovernment SoftwareAccountability

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