OHA chair sets June deadline, changes procurement path for CEO performance review

Office of Hawaiian Affairs Chair Tim Kahele told the board of trustees on April 17 that the office will complete the annual performance appraisal of Kapūhana Stacy Ferreira by the end of the current fiscal year, June 30, 2025.

Kahele said the performance period under review covers Nov. 2023 through Nov. 2024 and reminded trustees the Kapūhana’s contract requires at least annual appraisals; the contract expires Oct. 31, 2026. He told trustees an external consultant historically has been used for the appraisal and that those engagements have cost about $30,000 in past cycles.

The chair said he instructed procurement to seek a more fiscally prudent approach after initial competitive solicitations returned prices higher than expected. Chris Stanley, procurement manager, told trustees the office first issued a request for quote and then moved to a professional services procurement category because the sealed-bidding process did not reach the desired price point. Stanley said the preapproved vendor list initially contained only two firms; state procurement rules require a minimum of three, prompting a 10-day call for statements of qualification. A third firm responded during that posting period.

Stanley described the next steps: seating a three-person review committee (typically recommended by corporation counsel) to determine whether the newly entered firm is acceptable; then a selection committee (recommended by the chair) will rank two or three firms. If a number-one ranked vendor cannot be negotiated with, staff will attempt to reach terms with the second-ranked firm and then the third. He said there is also a state provision allowing the head of the purchasing agency to document that resolicitation would be futile and to open direct negotiations if no qualified respondent is available.

Interim Corporation Counsel Everett Ota confirmed that the review and selection committees are the normal procurement steps for the legal services category being used. Kahele set a target of selecting a vendor quickly and, if needed, negotiating terms so the appraisal process and consultant input can proceed. Kahele said he intends to take a more hands-on role in the appraisal to reduce outside costs while still complying with the contract clause requiring consultation "with a professional consultant" and cited HRS section 103D in relation to procurement rules.

Trustees asked about committee roles and whether the Budget & Finance or BAE committees had formal authority over the evaluation process. Everett Ota said, under OHA’s bylaws as explained in the meeting, committee roles on recruitment and selection do not supplant the board’s obligation to conduct performance appraisals; the board must still conduct or approve the appraisal process in consultation with any consultant. Kahele said the chair will lead any negotiations with selected vendors.

Kahele committed to completing the appraisal by June 30, 2025, and asked trustees to participate in the trustee-led portions of the review, noting the performance period covered a time when the current chair was not on the board and therefore should reflect the trustees who served during Nov. 2023–Nov. 2024. He said the office aims to finalize the process in time for any contract decisions later in 2025.

Provenance: The appraisal timeline, procurement description and the June 30 completion commitment were discussed beginning with the board’s announcement of new business item 3(a) on April 17 (see transcript block starting at 652.815) and concluded before trustees moved to item 3(b) (discussion ending at the block beginning near 1694.05).