Because of what the Department of Education called "significant errors" in testing materials in spring 2004 and distribution problems in spring 2005, the DOE has replaced Harcourt Assessment with a company called AIR — American Institutes for Research — to develop the new version of the State Assessment test under a $7.3 million contract.

The new tests to be developed by AIR, a 60-year-old company, will not be in use until spring 2007 for language arts and math, and a year later for science. They will be aligned with the Hawai'i Content and Performance Standards.

The department will terminate the language arts and mathematics test contract effective Aug. 31, according to a letter sent to Harcourt by Schools Superintendent Pat Hamamoto.

The science contract also will not be renewed when it ends in June 2007.

Mark Slitt, director of public relations for Harcourt Assessment, said the company was sorry to lose Hawai'i as a client after a relationship of 30 years. Slitt said the distribution issues were related to a new warehouse inventory system, and Harcourt worked hard to resolve them as quickly as possible.

Slitt said while some schools may have had to reschedule the test, all testing was still done within the testing window.

In regard to test errors, he said they had primarily been in some of the instruction booklets, and in sample questions, with only two on live tests.

"I'm not excusing it," he said. "We should not have made those errors." But he said they did not affect student scores, or inhibit the company from delivering test results on time.

Slitt said Harcourt will work with the new company to make a seamless transition for the state.

The DOE has been unhappy with Harcourt because of these problems, according to department spokesman Greg Knudsen.

"The confidence of the testing vehicle is very important. It was starting to create doubt," Knudsen said.

Reach Beverly Creamer at bcreamer@honoluluadvertiser.com.