Posted on: Thursday, June 16, 2005

Purchasing practices suspicious, audit says

By Sean Hao
Advertiser Staff Writer

The procurement methods at three state agencies lacked oversight leading to cumbersome and at times questionable practices, according to a recently released state audit.

The state Procurement Office also failed to adequately train state agencies on procurement code compliance when contracting for professional services, according to state auditor Marion Higa.

However, state procurement practices often have been criticized for a lack of impartiality. That was supposed to change under Act 52 of 2003, which, among other things, required state agencies to use committees rather than individuals to select winners of professional service contracts.

"It was an attempt to minimize or even eliminate what was perceived to be a politicized process," Higa said.

The audit of the Department of Transportation, the Department of Accounting and General Services and the Department of Human Services found the agencies were unable to document that committee members indeed were impartial and independent.

The audit also found cases when work began on projects before the contracts were executed, and there were instances when the public wasn't notified of contract winners in a timely manner. The audit found 49 percent of contracts reviewed were not posted within 30 days of a contract award. Some postings ranged from 94 to 222 days after a contract was awarded.

Higa recommended stepped up training for state employees, the development of clearly defined procurement policies, and that agencies require documentation supporting impartiality to those selecting contracts and negotiating fees.

Reach Sean Hao at 525-8093. or shao@honoluluadvertiser.com.