Policy Against Advance Payments

5 GCA § 5007, under Guam Procurement Law.

5 GCA § 5007

With the exception of off-island orders of the Guam Public Library System, the Department of Education, and the University of Guam, no procurement shall be made under this Chapter which shall require advance payment. SOURCE: GC § 6950.6. New Section. Amended by P.L. 17-045:5 (Jan. 18, 1984), P.L. 30-087:2 (Feb. 8, 2010) (effective “upon adjudication of the rules and regulations required under Section 2 of this Act”), P.L. 35-114:11 (Dec. 11, 2020) and P.L. 36-133:2 (Dec. 28, 2022). NOTE: This Section added by the Committee on General Governmental Operations. The Committee has observed the waste of money, loss of interest, and difficulty in recovery should something happen to the order when advance payments are made. Thus, there is a general prohibition on such advance payments.

COL 2026-04-23

2010 NOTE: Amended by P.L. 30-087:2 (Feb. 8, 2010), effective upon adjudication of rules and regulations, pursuant to P.L. 30-087:3. P.L. 30-087:2 provides: “§ 5007. Policy Against Advance Payments. With the exception of off-island orders of the Department of Education and off-island purchases of goods and services of the Guam Visitors Bureau directly related to its overseas promotions, no procurement shall be made under this Chapter which shall require advance payment. The Board of Directors of the Guam Visitors Bureau shall, pursuant to the Administrative Adjudication Act, formulate rules and regulations for the exercise of advanced payment authority.” 2009 NOTE: P.L. 28-045:10 (June 6, 2005) changed the name of the Department of Education to the Guam Public School System. P.L. 30-050:2 (July 14, 2009) reverted the name to the Department of Education.