Twice before, the money trail has explored the issue of how the state spends, misspends or fails to spend tens of millions of federal grant dollars annually on Homeland Security equipment and services.

We've already learned that the way some of the money spent by the state (and the four counties, which are "subgrantees" of the state) violates the state procurement code. And we've learned that the state and counties have received so much money ($100 million since 2001) that they've had trouble spending it all within federal deadlines.

Now we learn that the state has been overpaying for at least some of the goods and services it has managed to buy.

Earlier this month, state procurement chief Aaron Fujioka rejected an after-the-fact request by the Hawai'i Department of Defense to continue using a Homeland Security purchasing system established by the state of Arkansas.

In March, Fujioka first balked at approving the request, telling the Defense Department that he didn't think using the Arkansas system was legal under Hawai'i's procurement code.

He asked for more information.

In April, the Defense Department sent Fujioka another lengthy request to use the Arkansas system, which was established in cooperation with the National Association of State Procurement Officers. That's when Maj. Gen. Robert G.F. Lee, adjutant general in charge of the state Defense Department, revealed that Hawai'i had been tardy in spending all its federal money and the U.S. Department of Homeland Security wasn't happy about it.

Last month, Fujioka sent Lee another letter, again asking for more information.

"Rebecca O'Neal, contract administrator for the Arkansas cooperative contract, advised (me) that the best pricing was not being afforded to Hawai'i," Fujioka told Lee.

The Arkansas program allows for the use of different vendors, but Hawai'i was just using one, which "has raised questions as to whether the pricing received was reasonable," Fujioka wrote.

He said O'Neal told him "the use of another vendor could show significant cost savings if the end users (in Hawai'i) conducted price comparisons before they placed orders."

The Department of Defense never responded to Fujioka's May 4 letter, so on June 8, he formally disapproved the request.

We're still chasing down details of the overspending.

If you know that a particular money trail will lead to boondoggle, excessive spending or white elephants, reach Jim Dooley at 535-2447 or jdooley@honoluluadvertiser.com