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The Honolulu Advertiser
Posted on: Saturday, October 6, 2007

Lawmakers to question DBEDT officials again on procurements

By Sean Hao
Advertiser Staff Writer

Officials for the Department of Business, Economic Development and Tourism next week will face a second round of questions from state lawmakers regarding recent procurement decisions.

The state Senate Tourism and Government Operations Committee plans to meet 2 p.m. Thursday in Room 229 of the state Capitol to gather information on at least three contract decisions, including a management contract for an $8.7 million hydrogen technology investment fund. The committee met for four hours on that same issue in early September. At issue is whether the agency used proper procurement procedures in its selection.

DBEDT, state's lead economic development agency, has since been ordered by the state Procurement Office to rescind the selection of H2 Energy LLC to manage the investment fund. The Senate committee also is requesting a follow-up briefing from DBEDT and the state's chief procurement officer on the status of that contract.

In addition to the hydrogen fund, the committee also plans to probe two other DBEDT contract awards, including the selection of a New York company to run Hawai'i's Regional Center Immigrant Investor's Pilot Project Program. CanAm Enterprises LLC was chosen to manage the program. Honolulu-based Invest Hawaii LLC, which was passed over, is protesting the selection of Can Am.

The immigrant investors contract doesn't cost the state anything; however, the winning bidder could receive hundreds of thousands of dollars in fees.

The Senate committee also plans to ask questions about DBEDT's decision to award the Pacific & Asian Affairs Council a $204,329 service contract to create an "innovation in linking Hawaii to the global economy" policy.

DBEDT Director Ted Liu was unavailable for comment yesterday.

Reach Sean Hao at shao@honoluluadvertiser.com.