Lingle, business leaders discuss contract reform
By Johnny Brannon
Advertiser Staff Writer
Gov. Linda Lingle met yesterday with dozens of construction industry leaders and state officials to begin planning reforms to state contracting procedures that she hoped would make the process more fair and open.
The following is a list of some of the guests invited to participate. The list does not include state officials and representatives of various state departments: Barry Baker, Hawai'i State Council of the American Institute of Architects; John Cheung, Building Industry Association; Danielle Conway-Jones, law professor and procurement attorney for the U.S. Army; Bruce Coppa, Pacific Resources Partnership; Ather Rashid Dar, Richard Campbell, Hawai'i Council of Engineering Societies. Vince Faggiolli, U.S. Army Corps of Engineers; Greg King, deputy finance director, Maui County; John Fullmer, Hawai'i Chapter, American Institute of Architects; Bill Gray, purchasing agent, Hawai'i County; Kendell Hee, Hawai'i Association of Land Surveyors. William "Buzzy" Hong, Nolan Moriwake, Building Trades Council; Charles Katsuyoshi, purchasing administrator, City & County of Honolulu; Paul Kinney, National Contract Management Association, Aloha Chapter; Howard Lau, engineer; Howard Leslie, Hawai'i Council of Engineering Societies. Ivan Lui-Kwan, acting budget director, City & County of Honolulu; Brennon Morioka, Hawai'i Republican Party; Ritchie Mudd, Associated Builders and Contractors; Elmer Muraoka, procurement officer, Kaua'i County; Karen Nakamura, Building Industry Association; Terry Thomason, Carlsmith Ball. Mike Tori, Associated Builders and Contractors; Vaughn Vasconcellos, Akimeka LLC; Craig Watase, former president, Building Industry Association; Gary Wiseman, Associated Builders and Contractors; Brian Woolford, D&D Industries; Roy Yamashiro, American Council of Engineering Companies of Hawai'i.
"We made a commitment to the public to clean up this system and make it right and open and fair to all companies and fair to taxpayers," Lingle said, noting that many government contractors had paid heavy fines after investigations into illegal campaign contributions they made to Hawai'i politicians.
Contractors, officials invited
Participants called the meeting a good first step and said the current system is not hopelessly broken but could be improved.
"What was amazing about the meeting was that there was representation from all sectors of the industry," said Karen Nakamura, executive vice president of the Building Industry Association of Hawai'i.
"It went great," said Bruce Coppa, director of the union-backed Pacific Resources Partnership. "I thought it was the right step to take by bringing in the people who are affected the most."
Lingle invited reporters and some members of the public in for her opening remarks but held most of the meeting behind closed doors.
Lingle spokesman Russell Pang said it was to ensure that participants would be comfortable to engage in a frank and open dialogue.
"It had nothing to do with hiding anything," he said.
Nakamura said participants had spoken freely.
"There were no secrets in the room, no hidden agendas," she said. "Everybody put everything on the table and, to me, that's great. I think this process will allow more people to play and have access to jobs, not just a few."
Nakamura said many smaller companies are discouraged from seeking government contracts because the process can be too burdensome.
"The paperwork is unbelievable, but once you're set up for it, you're set up for all kinds of government work," she said.
Coppa said the state could improve relations with contractors and the public by simply being more open about the process and making as many details about contracts awarded available and accessible.
He acknowledged that political contributions from contractors have fueled suspicions that contracts have been awarded in exchange, but that he had never seen such "pay-for-play" schemes executed.
"There's definitely a perception out there that if you don't give to the government, you don't get jobs, but I don't know how widespread it is,"Coppa said. "I don't think it's a large problem."
He said that while "we've seen a few bad apples in the crate and they've been very diligent in getting them out," it's likely to be an exaggeration to call it "rampant."
Gary Wiseman, executive director of the Associated Builders and Contractors, said he hoped the Legislature would revisit a 1999 law, backed by construction unions, that prevents nonprofit groups that employ disabled people from bidding on state contracts.
"I think the disabled in our state should have a chance to work on construction projects for the state, and we should bend over backwards to include them if possible," he said.
Coppa said one problem is that nonprofit groups do not meet the same prevailing wage requirements as other contractors, which threatens union jobs. One solution would be to hire disabled people through an organization that all contractors could tap, he said.
"Then, all of us are on a level playing field," he said.
Reach Johnny Brannon at jbrannon@honoluluadvertiser.com or 525-8070.
