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The Honolulu Advertiser
Posted on: Thursday, November 24, 2005

PR firm requests procurement review

Advertiser Staff

A public relations company cut out of a $9.7 million city contract to help plan O'ahu's mass-transit project has asked the state to determine if the action was proper.

Communications Pacific yesterday filed a petition with the state Procurement Policy Board seeking a ruling to determine if the practice of substituting subcontractors is allowed under state law.

In May, Communications Pacific was listed as a subcontractor for a team led by the firm of Parsons, Brinckerhoff, Quade and Douglas picked to conduct planning for the transit project. The city later substantially reduced the role of Communications Pacific and several other companies and instead gave more than $800,000 of the work to another firm that was not included in the original proposal.

Communications Pacific said it sought the ruling to protect the integrity of the procurement process.

"Taxpayers deserve to know that their money is being spent legally, fairly and responsibly, which is why we are asking the state to look into this matter," said Kitty Lagareta, chief executive officer of Communications Pacific.

City officials have defended the substitution, saying they often make such moves to ensure that the most appropriate company is doing the work.

"The petition doesn't seek to set aside the legally negotiated contract between the city and Parsons Brinckerhoff or to add to Communications Pacific's degree of involvement, but appears instead to merely be an attempt by Ms. Lagareta to use her state connections to get a ruling that she hopes would put the city in a bad light," said city spokesman Bill Brennan.

"We also wonder whether or why the board would even want to consider such a matter, thus opening itself up to every petty complaint any subcontractor might have in the future," he said.