STAND. COM. REP. NO.518

Honolulu, Hawaii

, 2003

RE: S.B. No. 1263

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Science, Arts, and Technology, to which was referred S.B. No. 1263 entitled:

"A BILL FOR AN ACT RELATING TO ELECTRONIC PROCUREMENT,"

begs leave to report as follows:

The purpose of this measure is to allow the purchase of goods to be made through online electronic procurement.

Testimony in support of this measure was submitted by the State Procurement Office and the Department of Accounting and General Services.

Your Committee finds that a statewide electronic procurement system will enhance the State's and counties' ability to use computer technology to procure goods and services at a more competitive price using a more efficient and transparent process. Your Committee further finds that it is necessary and appropriate for state government agencies to "think electronically" and implement cost-saving strategies as we face continuing fiscal constraints. Thus, your Committee commends the State Procurement Office for proposing this initiative, which will bring Hawaii's procurement law and practices in-line with other electronic procurement systems being used within the federal government and many other jurisdictions.

Your Committee has amended this measure by:

(1) Authorizing the use of electronic bidding and competitive reverse auctions for the procurement of goods, and providing a process for such use;

(2) Providing definitions for "electronic bidding", "competitive reverse auction", and "real time";

(3) Expanding the methods of source selection to include competitive reverse auction;

(4) Providing that awards of small purchases between $5,000 and $25,000, under the small purchase law, will be posted electronically;

(5) Providing that procurements of $25,000 to $100,000 for goods, services, or construction may be made in accordance with small procurement procedures, provided that the procurement is made through electronic bidding;

(6) Making conforming amendments to sections 103D-302 to -304, Hawaii Revised Statutes, to allow for the exception for purchases between $25,000 to $100,000 made through electronic bidding; and

(7) Making technical, non-substantive changes for the purposes of clarity and style.

As affirmed by the record of votes of the members of your Committee on Science, Arts, and Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1263, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1263, S.D. 1, and be referred to the Committee on Transportation, Military Affairs, and Government Operations.

Respectfully submitted on behalf of the members of the Committee on Science, Arts, and Technology,

____________________________

DAVID Y. IGE, Chair