The state Procurement Office plans to look into whether the Department of Business, Economic Development and Tourism erred in awarding a contract to manage a program that helps immigrant investors obtain U.S. visas.

The probe was requested by the state Senate Tourism and Government Operations Committee after a nearly four-hour hearing yesterday. It was the committee's second hearing regarding recent DBEDT procurement decisions in the past two months. The first hearing focused on DBEDT's award of a management contract for an $8.7 million hydrogen technology investment fund.

Yesterday's hearing focused on DBEDT's August selection of New York-based CanAm Enterprises LLC to run Hawai'i's Regional Center Immigrant Investor's Pilot Project Program. At issue is whether the agency used proper procurement procedures in its selection.

The contract doesn't cost the state anything. However, the winning bidder could receive hundreds of thousands of dollars in fees from foreign investors seeking U.S. visas. The investors are given a priority in the visa program if they can prove their investments will create jobs.

Senate Vice President Donna Kim questioned whether DBEDT inappropriately disqualified bidders and wrongly pursued alternative procurement procedures in selecting a winner.

DBEDT Director Ted Liu testified his agency followed proper procedures, but acknowledged the procurement process DBEDT used was complicated. However, the agency's decision was valid, he said.

"Was one (bidder) really advantaged or disadvantaged?" by the process, Liu said. "I don't believe so."

Reach Sean Hao at shao@honoluluadvertiser.com.