The state and Hawai'i's four counties have had problems spending the flood of money the federal government has made available for homeland security improvements here over the past six years.

Since the fiscal year that ended Sept. 30, 2001, Hawai'i has received more than $100 million in federal homeland security funds, according to the state Department of Defense.

Hawai'i just finished spending its 2003 grants and has $5 million unspent from 2004, according to paperwork sent to Hawai'i chief procurement officer Aaron Fujioka.

"We have requested three extensions just for this (2004) grant," Adj. Gen. Robert G.F. Lee, head of the Defense Department, told the procurement office last month.

The delays are bothering the federal Department of Homeland Security.

"Because of the number of extensions the state has requested for each grant, DHS has been critical for what seems to be a lack of focus on expending the grant funds," Lee wrote.

One solution that Hawai'i homeland security grant recipients hit on some time ago was to buy equipment via Arkansas, of all places.

Arkansas set up a homeland security purchasing system that uses three private "prime vendors" that supposedly make federally-approved equipment available for purchase at competitive prices.

Arkansas charges a handling fee and so do the prime vendors, so it's not clear if the prices being paid by Hawai'i are all that competitive.

Fujioka has held up an after-the-fact request from the state Defense Department to approve the Arkansas purchase mechanism, so homeland security purchases are in limbo.

The Defense Department originally said it believed Fujioka had approved the process back in 2004, but Fujioka said that was a different system, one that allowed states to buy from the federal government's Defense Logistics Agency.

And even then, Fujioka warned that the equipment "may be available ... (from) local businesses/vendors" and price quotations from them should be obtained "if time permits."

Fujioka said he's been in meetings with Defense Department and county officials about how to proceed with purchases that meet the requirements of the state procurement law, but nothing's been resolved yet.

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