HOUSE OF REPRESENTATIVES

H.B. NO.

1374

TWENTY-SEVENTH LEGISLATURE, 2013

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

Relating to procurement.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The legislature finds that the procurement process is in need of reform, so that taxpayers dollars are not wasted.  Remedial measures can cost taxpayers more money in the long term.  The usual principle of awarding contracts to the lowest bidder may lead to substandard work, as contractors may artificially lower bids to gain a contract, in spite of a lack of qualification, or worse yet, poor performance in the past.

     The purpose, therefore, of this Act is to:

(1)  Allow past performance to be factored into future bid selection of a contractor including a review of delays, cost overruns, and compliance with project requirements; and

(2)  Include in each bid evaluation a review of assessments from past work from a potential contractor, and allow departments to consider the assessments when making

contract awards.

     SECTION 2.  Section 103D-302, Hawaii Revised Statutes, is amended by amending subsection (f) to read as follows:

     "(f)  Bids shall be evaluated based on the requirements set forth in the invitation for bids.  These requirements may include criteria to determine acceptability such as inspection, testing, quality, workmanship, delivery, and suitability for a particular purpose.  Those criteria that will affect the bid price and be considered in evaluation for award shall be [objectively measurable,] fair in the eyes of a reasonably objective taxpayer, such as discounts, transportation costs, [and] total or life cycle costs[.], and the bidder's past performance on projects of similar scope for public agencies, including delays, cost overruns, corrective actions, responses to notices of deficiencies, and assessments of the bidder's prior work.  The invitation for bids shall set forth the evaluation criteria to be used.  No criteria may be used in bid evaluation that are not set forth in the invitation for bids."

     SECTION 3.  Section 103D-303, Hawaii Revised Statutes, is

amended by amending subsection (g) to read as follows:

     "(g)  Award shall be made to the responsible offeror whose proposal is determined in writing to be the most advantageous, taking into consideration price and the evaluation factors set forth in the request for proposals[.], which shall include the offeror's past performance on projects of similar scope for public agencies, including delays, cost overruns, corrective actions, responses to notices of deficiencies, and assessments of the offeror's prior work.   No [other factors or] criteria [shall] may be used in the evaluation[.that are not set forth in the request for proposals.  The contract file shall contain the basis on which the award is made."

     SECTION 4.  Section 103D-304, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

     "(e)  The selection criteria employed in descending order of importance shall be:

     (1)  Experience and professional qualifications relevant to the project type;

     (2)  Past performance on projects of similar scope for public agencies or private industry, including delays, corrective actions, [and other] responses to notices of deficiencies[;], and assessments of prior work; 

     (3)  Capacity to accomplish the work in the required time; and

     (4)  Any additional criteria determined in writing by the selection committee to be relevant to the purchasing agency's needs or necessary and appropriate to ensure full, open, and fair competition for professional services contracts."

     SECTION 5.  Section 103D-310, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  Whether or not an intention to bid is required, the procurement officer shall determine whether the prospective offeror has the financial ability, resources, skills, capability, and business integrity necessary to perform the work.  For this purpose, the officer, in the officer's discretion, may require any prospective offeror to submit answers, under oath, to questions contained in a standard form of questionnaire to be prepared by the policy board.  Whenever it appears from answers to the questionnaire or otherwise, that the prospective offeror is not fully qualified and able to

perform the intended work, a written determination of nonresponsibility of an offeror shall be made by the head of the purchasing agency, in accordance with rules adopted by the policy board.  The offeror shall be required to submit information, including information on and assessments of prior work of similar scope for public agencies.  The unreasonable failure of an offeror to promptly supply information in connection with an inquiry with respect to responsibility may be grounds for a determination of nonresponsibility with respect to such offeror.  The decision of the head of the purchasing agency shall be final unless the offeror applies for administrative review pursuant to section 103D-709."

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 8.  If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or

applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

     SECTION 9.  This Act shall take effect on July 1, 2013.

 

INTRODUCED BY:

_____________________________


 



 

Report Title:

Procurement; Past Performance; Criteria

 

Description:

Allows past performance to be factored into future bid selection of a contractor including a review of delays, cost overruns, and compliance with project requirements.

 

 

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