Licensing issue involving Ansaldo was appropriately addressed

In a recent commentary, former Gov. George Ariyoshi indicated that the chosen bidder, Ansaldo Honolulu, did not have a license at the time it bid on the rail project and that a penalty assessed by the Department of Commerce and Consumer Affairs (DCCA) against Ansaldo did not comply with existing statute ("Leave no stone unturned before passing rail’s point of no return," Star-Advertiser, Island Voices, Nov. 9).

The bidding process for the rail project lasted from June 2009 to March 2011. Ansaldo Honolulu was issued a contractor’s license during the bidding process and was licensed before best and final offers were submitted and before an award was made.

The penalty provision, which former Gov. Ariyo-shi references, specifies a fine of $2,500, or 40 percent of a contract price. That would be imposed by a judge after determining there was unlicensed activity. This matter was settled by the parties before a lawsuit was filed.

The DCCA Regulated Industries Complaints Office’s prosecutorial discretion allows that office to enter into settlements where appropriate and to settle cases in order to maximize resources and economize on litigation costs.

The challenging task of ensuring that due diligence has been met before a contract is signed is on the city and the Honolulu Rapid Transportation Authority, and the bidding process on which they rely. We are mindful of that task and, like former Gov. Ariyoshi, hope no stone is left unturned to ensure that the best decision is made.

For our limited part, we are confident that licensing issues have been more than appropriately addressed, in keeping with Hawaii law and in the best interest of the state.

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Keali‘i Lopez is director of the state Department of Commerce and Consumer Affairs.