Recently sworn-in Governor Alejandro Garcia Padilla of Puerto Rico has been busy putting together his administration at La Fortaleza. For companies that do business in Puerto Rico, persons interested in doing business there and many with an interest in seeking government contracts, knowing who's who on the Governor's team is a necessity in assessing Puerto Rico's business environment for the next four years.
What is shaping up to be perhaps one of the most important appointments by the Governor is his selection of Ingrid Vila Biaggi as his Chief of Staff. Ms. Vila Biaggi, a civil and environmental engineer by training and profession, previously served as Deputy Chief of Staff to former Governor Sila Maria Calderón and as an engineer with the Puerto Rico Aqueduct and Sewer Authority.
Ms. Vila Biaggi stands to be a very prominent figure in Governor Garcia Padilla's administration if Executive Order OE-2013-002 is any indicator. With that order, the Governor mandated that every government agency service contract, be it professional, consulting or technical, must go through his Chief of Staff. The Executive Order directs his Chief of Staff to "establish a system for the adequate and careful processing and disposition of the authorization requests required by [the] Executive Order."
The clear intent of the Executive Order is to keep a close eye on, and to control, government spending. Those businesses that had or are seeking professional, consulting or technical service contracts with Puerto Rican agencies are wondering how the new approval system will work out in practice. Will the Chief of Staff's review process keep costs down but delay the approval or implementation of government projects or will the new procedure streamline the contract approval process? Time will tell. Nevertheless, those seeking government contracts with the new administration should take note that their strategy must account for this new approval system for any government contract that includes services.
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