STAND. COM. REP. 3323

Honolulu, Hawaii

, 2004

RE: S.C.R. No. 13

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committees on Labor and Transportation, Military Affairs, and Government Operations, to which was referred S.C.R. No. 13 entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING HAWAII'S CONGRESSIONAL DELEGATION TO ENSURE THAT AT LEAST EIGHTY PER CENT OF FEDERAL EXPENDITURES REMAIN IN HAWAII, AND THE RIGHTS OF LOCAL UNION LABOR TO FAIR WAGES UNDER THE DAVIS-BACON ACT ARE NOT CIRCUMVENTED, ON THE U.S. MILITARY PRIVATIZATION CONSTRUCTION CONTRACTS FOR IMPROVEMENTS ON HAWAII MILITARY BASES,"

beg leave to report as follows:

The purpose of this measure is to urge Hawaii's congressional delegation to ensure that for privatization construction contracts at military bases in Hawaii:

(1) At least eighty percent of federal expenditures remain in Hawaii;

(2) Rate-fixing and the piecework system do not act to circumvent the Davis-Bacon Act; and

(3) Local contractors are not underbid by mainland firms.

Testimony in support of this measure was submitted by the Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO, the Chamber of Commerce of Hawaii, the General Contractors Association of Hawaii, Plumbers and Fitters United Association Local 675, the Hawaii Operating Engineers Industry Stabilization Fund, and a private citizen.

The Residential Communities Initiative (RCI) is the Army’s version of on-post family housing privatization, whereby the Army will transfer ownership and management responsibilities for on-post family housing to a private company who is responsible for family housing development, new construction, renovation, maintenance, and repair. The RCI project in Hawaii will signify the largest military expenditure for the hiring of local civilian labor, involving hundreds of millions of dollars in construction, design, and maintenance. Your Committees believe that efforts to ensure that federal expenditures are circulated locally will help to revitalize and grow Hawaii's economy. Therefore, your Committees find that every effort should be made to ensure that a major portion of federal expenditures for the RCI in Hawaii should be made to local construction firms and local workers.

Additionally, under the Davis-Bacon Act, the payment of prevailing wages for all workers employed by a contract on a federal works project is mandated in order to ensure that all contractors bidding on projects are competitive and that the local workers are paid fair wages. The practices of the piecework system and rate fixing could allow contractors or subcontracts to circumvent the Davis-Bacon Act, which will result in local workers being unjustly compensated. Although an objective of the RCI program is to promote and emphasize the use of local businesses, your Committees are concerned that local construction firms and workers be not only significantly utilized, but also fairly compensated.

As affirmed by the records of votes of the members of your Committees on Labor and Transportation, Military Affairs, and Government Operations that are attached to this report, your Committees concur with the intent and purpose of S.C.R. No. 13 and recommend its adoption.

 

Respectfully submitted on behalf of the members of the Committees on Labor and Transportation, Military Affairs, and Government Operations,

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CAL KAWAMOTO, Chair

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BRIAN KANNO, Chair