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Hawaii Seeks to Control Project Costs with In-House Team

HONOLULU -- The Department of Accounting and General Services (DAGs) is spearheading a significant shift in how Hawaii manages large-scale state projects. A new proposal seeks to establish a dedicated, in-house team of specialized professionals, aiming to curb escalating costs, minimize delays, and strengthen oversight. The move comes as the state grapples with a history of budget overruns and timeline setbacks on major construction and technology initiatives.

The proposal, detailed in a recent report submitted to the state Legislature, envisions a core group of approximately 15 full-time employees possessing expertise in critical areas such as sustainable building practices, cutting-edge cybersecurity protocols, and the seamless integration of advanced technologies. These professionals would not simply be advisors, but active managers, responsible for the end-to-end oversight of large, complex projects across various state agencies.

"We've learned valuable lessons from years of relying heavily on external consultants," explained DAGs Director Kaleo Kai. "While these consultants undoubtedly bring specialized skills to the table, the financial implications - and often, the delays - can be substantial. An in-house team will foster continuity, cultivate internal expertise, and provide a level of proactive oversight that's been lacking. This isn't about eliminating consultants entirely, but about strategically reducing our dependence on them for core project management functions."

The impetus for this proposal stems from increasing concerns about the fiscal responsibility of state projects. Recent audits have consistently revealed ballooning consultant fees and a perceived lack of control over project execution. These findings highlight a recurring pattern: projects start with ambitious goals, but quickly become bogged down in complications, leading to increased costs and missed deadlines. The audits haven't just pointed to financial issues, but also raised questions about the efficient allocation of taxpayer dollars.

The initial investment to establish this specialized team is estimated at $2 million annually, covering salaries, comprehensive training programs, and necessary equipment. DAGs officials are confident that this upfront cost will be significantly offset by long-term savings generated through reduced consultant fees and improved project outcomes. They project that by managing more of the project internally, the state can negotiate more favorable rates with consultants when their specialized expertise is needed, and avoid the markups often associated with full-service contracts.

The types of projects this team would oversee are diverse. They range from constructing environmentally friendly state buildings, incorporating the latest energy-efficient technologies, to upgrading critical IT infrastructure and bolstering the state's defenses against cyber threats. This centralized expertise will also streamline the approval processes for innovative projects, reducing bureaucratic hurdles and encouraging efficiency.

Senator Michelle Kidani, chairwoman of the Senate Ways and Means Committee, expressed cautious optimism. "The concept certainly has merit," she stated. "However, it's crucial that this team is empowered with the necessary authority and resources to effectively manage projects from inception to completion. Simply creating the team isn't enough; they need the autonomy to make decisions and the budget to implement them effectively." Senator Kidani also hinted at potential legislative scrutiny regarding key performance indicators (KPIs) to accurately measure the team's success and return on investment.

The proposal is currently undergoing legislative review and is expected to be the subject of intense debate in the coming weeks. Public hearings have been scheduled to provide a platform for community members to voice their opinions and offer feedback. Advocates argue that this initiative will not only save money but also foster a more skilled state workforce, capable of handling increasingly complex projects in the future. Critics, however, raise concerns about potential bureaucratic inefficiencies and the challenge of attracting and retaining top talent within the state government.

Looking ahead, the success of this in-house team hinges on careful planning, effective recruitment, and a commitment to continuous professional development. The state will need to compete with the private sector to attract skilled professionals, offering competitive salaries and opportunities for growth. Furthermore, ongoing evaluation and adaptation will be critical to ensuring the team remains responsive to the evolving needs of the state and delivers on its promise of greater efficiency and fiscal responsibility.


Read the Full Honolulu Star-Advertiser Article at:
[ https://www.staradvertiser.com/2026/01/18/hawaii-news/dags-proposes-in-house-staff-for-complex-projects/ ]