The key question emerging from the shutdown of SMS is whether Hawaiʻi’s government and private entities are helping or harming local firms through their procurement rules and procedures when hiring local firms for consulting and other work. Additionally, it raises the issue of whether the “buy local” philosophy is genuinely supported by these rules.
The State Department of Business, Economic Development and Tourism (DBEDT) and the Hawai‘i Housing Finance & Development Corporation (HHFDC) have recently confirmed that the state contracts previously held by SMS Research & Marketing Services, which recently shut down operations, have been transferred to other entities.
It seems, the company has fallen on hard times, and its owner took out a loan to bridge the funding gap the company was experiencing, starting in August of 2024.
And if this shutdown stands, SMS becomes yet another reminder of the ever-changing landscape of businesses, of all kinds, in Hawai‘i.