Big Island man objects in Superferry procurement issue

Saturday, September 15, 2007
West Hawaii Today
by Bobby Command

Two men have filed objections over the Transportation Department's request for exemption from the state's procurement code in awarding a contract to conduct the environmental assessment for the Superferry's use of state harbors.
 
On Thursday, Jeff Sacher of Kawaihae and Rob Parsons of Haiku filed the objection with the state procurement officer through their lawyer, Wailuku attorney Lance D. Collins.
 
"Public procurement is intended to remove barriers and open up new, nondiscriminatory and competitive markets through a legal and rational process offering the state and the people of Hawaii the highest quality goods and services at the lowest reasonable price," Collins said.
 
Also on Thursday, Maui Circuit Judge Joseph Cardoza extended a temporary restraining order issued Aug. 27 prohibiting the ferry from docking at Kahului Harbor. Cardoza must decide whether the ferry can resume operations while the state conducts the environmental review.
 
The state Legislature enacted the public procurement code in the 1990s after the state government battled negative publicity over the awarding of millions of dollars in no-bid, noncompetitive contracts to friends of powerful politicians, Collins said.
 
"This is not an issue of being for or against the Superferry," Collins said. "But after 30 years of scandals, the state Legislature decided competitive bidding should be the process."
 
The Procurement Code provides for an exemption if there is only one source available for the goods or services in an emergency of life or limb, or it would not be "practicable or advantageous to the state."
 
Collins said the first two avenues are not available to the state because the department acknowledges there are multiple potential vendors for the environmental assessment. It also does not claim that there is an imminent threat to life or limb and therefore cannot claim an emergency.
 
The objections point out the department has not provided accurate information regarding the procurement itself and that it has not provided any justification as required by the statute for the exemption. 

On Friday, the Honolulu Advertiser reported Superferry executives said they may leave Hawaii if they don't find out within the next six weeks that they can operate here.
 
Superferry Chief Executive John Garibaldi earlier declared to a Maui court that the company wouldn't be able to pay its employees and cover other expenses without ferry revenue.
 
Collins said he is also the attorney for Maui's public access cable television station Akaku, which protested the state's requirement that contracts to operate public access cable stations be put out for competitive bid.

"I find it unusual that the governor would place these competitive bid restrictions on a free speech forum with a budget of $10,000," Collins said, "but then ask that they be waived on a $1 million pet project."
 
Collins said the decision on the Superferry would be administrative and could be appealed only on grounds that the decision was arbitrary and capricious.
 
"Obviously there are no grounds for an exemption," Collins said, "and obviously we would appeal to Circuit Court."