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SR 104

REQUESTING THE AUDITOR TO CONDUCT AN AUDIT OF NO-BID CONTRACTS ISSUED BY STATE AND COUNTY AGENCIES UNDER PROCLAMATIONS DECLARING STATES OF EMERGENCY DURING THE SIX-YEAR PERIOD BETWEEN JANUARY 1, 2020, AND DECEMBER 31, 2025.

2026 Regular Session Introduced by Donovan Dela Cruz

Hawaii requests state auditor review all no-bid emergency contracts issued by state and county agencies from 2020-2025 to assess spending practices during declared emergencies.

Offered.
#auditor #emergencyproclamations #emergencyprocurements #no-bidcontracts #report #stateandcountyagencies #statesofemergency
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Bill Summary · SR 104

Legislative bill overview

SR 104 requests Hawaii's state auditor to conduct a comprehensive audit of all no-bid contracts awarded by state and county agencies during declared states of emergency between January 1, 2020, and December 31, 2025. The audit would examine procurement practices, contract justifications, and spending patterns during this six-year period that encompassed the COVID-19 pandemic and other emergencies.

Why is this important

No-bid contracts bypass normal competitive bidding processes, which raises concerns about government spending efficiency, contractor selection fairness, and potential waste. Emergency declarations provide legal authority for expedited procurement, but this audit would assess whether that authority was appropriately used or if competitive bidding could have occurred. The six-year window captures significant pandemic-era spending when emergency contracts were widespread.

Potential points of contention

  • Scope and cost concerns: A comprehensive audit of potentially thousands of contracts across multiple agencies over six years could be resource-intensive and expensive for the auditor's office
  • Retroactive scrutiny: Reviewing emergency decisions made during genuine crises may be perceived as second-guessing officials who acted under time pressure with limited information
  • Definitional ambiguity: The resolution doesn't specify criteria for what constitutes "necessary" emergency contracting versus potentially questionable spending, leaving interpretation to the auditor

Compiled from official sources — confirm details with the bill’s official record.

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