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The Honolulu Advertiser

Posted on: Wednesday, July 30, 2003

Firms learning military's ways

By Dan Nakaso
Advertiser Staff Writer

LINDA LINGLE

Senior representatives from all branches of the military met collectively for the first time yesterday with 250 Hawai'i small business people to see how they could do more business with one another — and especially get local companies a piece of $2.2 billion in upcoming housing construction projects.

The first forum of its kind sold out and attracted people from 175 Hawai'i companies.

Gov. Linda Lingle told the gathering that she hoped much of the money that goes to primary contractors from the Mainland stays in Hawai'i through sub-contracting work to local companies.

Afterward, Lingle said the forum was an important step for small businesses to better understand how the military operates.

"You don't walk into the military with a box of manapua and say, 'Thanks for the contract,' " Lingle said. "It just doesn't work that way. It's coming to realize what is the process at the federal level. It doesn't matter where you went to school and who your friends are."

One of the forum's sessions focused on the Department of Defense's plans to build or renovate 16,756 homes for all branches of the military in the next 14 years — beginning in early 2004. Under a new formula devised by the Department of Defense, private developers will build, maintain and manage the homes for 50 years.

But most Hawai'i businesses are unprepared to compete for sub-contracting work, said Beverly Harbin, who attended the forum and is working to get companies better prepared as small business advocate for the Chamber of Commerce of Hawai'i.

And the primary contractors from the Mainland will demand higher standards than on current military construction projects because they'll be required to maintain the homes for half a century, Harbin said.

She has spoken to primary contractors who currently build homes under the old military model and they say 10 out of 12 local businesses don't even fill out their applications correctly.

"Only two small businesses get it almost correct," Harbin said. "The rest are almost in the garbage."

The Chamber of Commerce of Hawai'i and Building Industry Association-Hawai'i have organized workshops on understanding the gap between the needs of small businesses and the demands of the military and primary contractors.

By the next session on Aug. 19, Harbin hopes to have helped organize one-on-one training sessions to cover a range of topics.

WHAT'S NEXT

Small Business Forum

When:
3 to 6 p.m., Aug. 19

Where: Ward Warehouse Kaka'ako Room

Cost: Free
"We've now realized the spectrum of training needs to be quite wide, from knowing how to run an Excel spreadsheet to an accounting program to project management and bidding requirements," Harbin said. "Our businesses right now are way behind the eight ball."

Reach Dan Nakaso at dnakaso@honoluluadvertiser.com or 525-8085.