At the least, businesses should learn how to fight back legally if they feel they have lost a bid unfairly, say officials involved in a Chamber seminar on the subject.

And that makes the seminar, scheduled for Thursday, important not just for vendors of goods and services but also for the attorneys who represent them, said Honolulu attorney Dan Bent, one of the seminar presenters.

The new procurement code, developed in 1993 after legislative hearings that found abuses in the system and since modified by rules and regulations, has tightened up the whole government purchasing process, Bent said.

"It also provides that there is no longer 'business as usual' for public officials steering business to their friends," he said.

Bent said the new structure is exemplified by a ruling last week by a hearings officer for the state Department of Commerce and Consumer Affairs, throwing out a Hawaii County contract for $4 million worth of computer equipment because the rules weren't followed.

Lloyd Unebasami, chief procurement officer for the state, said the code now sets down in writing the precise buying procedures that must be followed by executive and legislative branches at the state and county levels, he said.

That is particularly important for nonbid purchases, which are allowed for amounts under $10,000, he said.

"When we went out to buy things under $10,000, basically there were no procedures," Unebasami said.

Some procurement officers would call just one supplier for prices; some would call four or five. "Now we have it in writing that people have to go out and get three quotes. Now there is a process in law," he said.

Hector Venegas, director of military affairs for the Chamber of Commerce, said the day-long seminar will cover all the new rules for vendors and the attorneys who represent them.

The seminar will help island businesses know how to push for more sales to government, Venegas said.

"It will make it easier for businesses here to share in more than a billion dollars worth of government business," he said.

"Especially in these hard times, this will be an important shot in the arm for local businesses," Venegas said.

Unebasami said the major changes in the procurement law went into effect in 1994 but they have since been refined. He said there are several major points about the way the law now reads:

• It allows a requests for proposals process. Before, everything over $10,000 had to go to the lowest-price bidder unless an exemption was obtained.
• It helps vendors by setting up a formal protest structure.
• It sets a uniform policy for the entire state covering the state and county executive branches including the Department of Education and the University of Hawaii, as well as the Legislature and the county councils.

At the same time, the state Legislature looked for and found flaws in the Hawaii system that may have led to abuses.

"Now we have a method of trying to get the best competition," Unebasami said.

The Chamber of Commerce of Hawaii and the Hawaii Institute for Continuing Legal Education will present the seminar "Hawaii's New Procurement Code."

When: 8 a.m. to 3:30 p.m. Thursday at the Pagoda Hotel.
For: Businesses, suppliers, contractors and distributors, plus attorneys who want to know how to represent clients whose bids are rejected.
Cost: $80 for neighbor island residents, Chamber of Commerce members and attorneys; $100 for nonmembers of the Chamber and for walk-in registrants.
Call: 545-4363.