Military In Hawaii Economic Study

Project ID: RFP-26-04-MACRO State|LocalOpportunities

Overview

Agency	Hawaii Department of Business, Economic Development & Tourism [HI]
Deadline	02/20/26
Posted	01/16/26
Estimated Value	$5,000,000 - $15,000,000 (AI estimate)
Set Aside	Not Provided
NAICS	Not Provided
PSC	Not Provided
Location	Hawaii

Description

Primary Latest Change

Summary

The Military and Community Relations Office (MACRO) is an office under the Department of Business and Economic Development and Tourism (DBEDT). The MACRO promotes positive relationships between Hawai'i's military and civilian sectors by fostering mutual respect and understanding through collaboration on issues important to both the State of Hawai'i and the United States Department of Defense (DoD). Through engagement, education, and transparent communication with the military, MACRO is committed to promoting and preserving the foundations of Hawai'i. Hawaii hosts over 42,000 active-duty military personnel and their families, over 20,000 DoD civilians, over 18,000 military retirees, and over 9,000 Guardsmen and Reservists representing more than 10% of the state's population. Additionally, there are thousands of residents who support the local defense industrial base as contract workers. The U.S. Indo-Pacific Command (USINDOPACOM) is headquartered here, underscoring Hawaii's strategic importance in the Pacific. Military installations span multiple branches (Army, Navy, Air Force, Marine Corps, and Coast Guard) and islands, driving economic activity through payroll, procurement, construction, and consumer spending. Hawaii's economy is often described as a "three-legged stool" supported by tourism, construction, and defense spending. Recent analyses indicate that military-related activities account for approximately 15-20% of the state's GDP, with annual defense spending exceeding $7.9 billion as of fiscal year 2024. This study aims to provide updated, data-driven insights to inform policy decisions, support economic diversification efforts, and highlight opportunities for synergy between military and civilian sectors. The study will build on prior reports, such as: https://files.hawaii.gov/dbedt/economic/reports/Econ_Impact_Fed_Contracts_FY1822_Aug_2023_Final.pdf https://www.rand.org/content/dam/rand/pubs/technical_reports/2011/RAND_TR996.pdf Key economic drivers include but are not limited to:

Personnel Spending

The largest segment, encompassing active-duty pay, civilian salaries, retiree benefits, and veterans' disability payments.

Procurement and Contracts

Approximately $3.6 billion annually in products and services, supporting local businesses.

Veterans and Retirees

Programs like the Hawaii GI Bill and untaxed military pensions contribute to household income and stability.

Industry Linkages

Defense spending bolsters sectors like shipbuilding (e.g., Pearl Harbor Naval Shipyard, Hawaii's largest industrial employer with 5,800 civilians), high-performance computing, and base support operations. Work on the scope shall commence upon the full execution of a contract between the successful Offeror and MACRO.

Summary (Newest Update)

Background The Military and Community Relations Office (MACRO) operates under the Department of Business, Economic Development and Tourism (DBEDT) in Hawaii. Its mission is to foster positive relationships between Hawaii's military and civilian sectors, promoting mutual respect and understanding through collaboration on issues of importance to both the State of Hawaii and the U.S. Department of Defense (DoD). The study aims to provide updated insights on the economic impact of military activities in Hawaii, which significantly contribute to the state's economy, accounting for approximately 15-20% of its GDP. Annual defense spending exceeds $7.9 billion as of fiscal year 2024. The study will build upon previous reports to inform policy decisions and support economic diversification efforts. Work Details The contractor will conduct a comprehensive economic impact study focusing on the military's total economic footprint in Hawaii, including direct, indirect, and induced effects on GDP, employment, earnings, and tax revenues. Specific tasks include: 1. Quantifying contributions from major military installations such as Joint Base Pearl Harbor-Hickam, Schofield Barracks, Marine Corps Base Hawaii, and Pacific Missile Range Facility. 2. Evaluating veterans assistance programs and military pensions' roles in household consumption. 3. Analyzing industry-specific impacts across sectors like construction, manufacturing, hospitality, education, and technology. 4. Identifying risks and opportunities for economic resilience related to military personnel changes. 5. Providing actionable recommendations for policymakers. 6. Producing a professional brochure summarizing findings and printing 750 copies for distribution. Period of Performance The contract term is six months, commencing approximately on March 18, 2026, and concluding on September 18, 2026. Place of Performance The study will be conducted in Hawaii. Bidder Requirements Offerors must demonstrate expertise in conducting economic impact studies related to military spending within U.S. states. They should have experience with established economic modeling systems relevant to Hawaii's economy and knowledge of its military presence. Offerors must comply with all applicable laws governing entities doing business in the state including tax compliance (HRS Chapter 237), employment security laws (HRS Chapter 383), workers' compensation laws (HRS Chapter 386), among others.

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