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The Honolulu Advertiser
Posted on: Friday, December 2, 2005

Transit contract flap heats up

By Robbie Dingeman
Advertiser Staff Writer

What began as a complaint by one set of contractors that they got excluded from a lucrative city contract has broadened, with a city councilman calling for a federal investigation and a congressman accusing him of political "grandstanding."

Yesterday, U.S. Rep. Neil Abercrombie called a news conference and suggested that City Councilman Charles Djou — who had voted against increasing the general excise tax to pay for a transit system — was trying to delay the project by asking for an investigation without evidence of an actual problem.

On Monday, Djou filed a complaint with the Inspector General of the U.S. Department of Transportation over the city administration's award of a $9.7 million contract to Parsons Brinckerhoff Quade & Douglas Inc. for a mass-transit alternative analysis study. Djou called a news conference to announce his action.

Djou said he's concerned that the city chose to not put out a competitive contract. "Is it in fact rising to the level of illegal conduct? I don't know. I leave that up to the inspector general to decide. There is something there that needs to be resolved and needs to be investigated," he said.

Abercrombie yesterday sent his own letter to Inspector General Kenneth Mead asking whether the call for an investigation was "an attempt to lure you into a fishing expedition in order to settle scores."

Abercrombie said he worries that an investigation "will entail substantial costs to the taxpayers, possible project delays and potential damage to the reputations of individuals innocent of any wrongdoing."

But Djou said he is complaining to the right office because most of the money for the traffic project comes from the federal government. Djou said he wants to make sure the multimillion-dollar consultant contract, which paves the way for "the largest public works project in the history of Hawai'i," was handled properly.

Last week, public relations company Communications Pacific filed its own complaint about the contract. The company seeks a ruling from the state Procurement Policy Board on whether the practice of substituting subcontractors is allowed under state law, after the company got a much-reduced role under the Parsons Brinckerhoff contract.

"My point is not to derail the rail project," Djou said. He said he voted against the project because he opposes the accompanying tax increase. "I'm not opposed to rail," he said.

Djou said he wants to make sure the city is complying with state law and "making sure taxpayer dollars are well spent."

Abercrombie said Djou should have tried to work with other council members, the city prosecuting attorney and others locally before taking the matter to the inspector general. Abercrombie called it "a very, very serious step that takes place only when you're involved with corruption or serious criminal conduct."

Djou said the agency handles a wide variety of complaints from public corruption to improper luggage handling by the airlines.

Abercrombie called for Djou to cite specific issues. After decades of pushing for mass transit unsuccessfully, Abercrombie worries that these complaints will delay what he sees as a key quality-of-life issue — improving traffic on O'ahu. "We're just at the stage of being able to go to the public comment process," he said.

In May, Communications Pacific was listed as a subcontractor in the team led by Parsons. But the city later significantly cut the role of the company and two others and instead gave more than $800,000 worth of work to another firm not listed in the original proposal.

Communications Pacific's chief executive officer, Kitty Lagareta, said the company seeks to protect the integrity of the procurement process.

Abercrombie said one set of consultants complaining about another set getting a contract doesn't strike him as particularly newsworthy. "That happens all the time," he said.

Djou's call for the federal investigation is what upset him. His message to Djou: "You better have the evidence at hand or you better shut up or back up."

Abercrombie said he was responding to Djou because he thinks the transit project is so important.

"What I'm hoping, if this is grandstanding, is that it gets pointed out and that this kid goes back in his corner and tries to do something useful," Abercrombie said.

Djou replied: "It would be grandstanding if there was nothing there, if there weren't these lingering questions. ... This has everything to do with making sure the rules were followed."

Reach Robbie Dingeman at rdingeman@honoluluadvertiser.com.