Procurement; Prof. Services

Provides for procurement opportunities for qualified architects
and engineers.

THE SENATE                              S.B. NO.           2234
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  The legislature is committed to the growth of
 2 small and medium sized businesses, however, the legislature finds
 3 that many qualified architects and engineers are not receiving
 4 state contracts, which will enable their businesses to grow.  The
 5 purpose of this Act is provide for the procurement of services
 6 from qualified architects, engineers, and professionals in order
 7 to promote the growth of small and medium sized businesses in
 8 Hawaii.
 9      SECTION 2.  Section 103D-304, Hawaii Revised Statutes, is
10 amended to read as follows:
11      "103D-304  Procurement of professional services.(a)
12 Professional services shall be procured in accordance with
13 sections 103D-302, 103D-303, 103D-305, 103D-306, or 103D-307, or
14 this section.  Contracts for professional services shall be
15 awarded on the basis of demonstrated competence and qualification
16 for the type of services required, and at fair and reasonable
17 prices.
18      (b)  At a minimum, before the beginning of each fiscal year,
19 the head of each purchasing agency shall publish a notice

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 1 inviting persons engaged in providing professional services which
 2 the agency anticipates needing in the next fiscal year, to submit
 3 current statements of qualifications and expressions of interest
 4 to the agency.  Additional notices may be given if:
 5      (1)  The response to the initial notice is inadequate;
 6      (2)  The response to the initial notice does not result in
 7           adequate representation of available sources; or
 8      (3)  Previously unanticipated needs for professional
 9           services arise.
10 The chief procurement officer may specify a uniform format for
11 statements of qualifications.  Persons may amend these statements
12 by filing a new statement prior to the date designated for
13 submission. 
14      (c)  In addition to providing notice, invitations shall be
15 sent to all licensed professionals and corporations soliciting
16 resumes or statements of qualifications from which evaluations
17 shall be made in order to select qualified candidates for the
18 various projects.
19      [(c)] (d)  The head of the purchasing agency shall designate
20 a review committee consisting of a minimum of three employees
21 from the agency or from another governmental body, with
22 sufficient education, training, and licenses or credentials for
23 each type of professional service which may be required.  The

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 1 committee shall review and evaluate all submissions and other
 2 pertinent information, including references and reports, and
 3 prepare a list of qualified persons to provide these services.
 4 Persons included on the list of qualified persons may amend their
 5 statements of qualifications as necessary or appropriate.
 6 Persons shall immediately inform the head of the purchasing
 7 agency of any change in information furnished which would
 8 disqualify the person from being considered for a contract award.
 9      [(d)] (e)  Whenever during the course of the fiscal year the
10 agency needs a particular professional service, the head of the
11 purchasing agency shall designate a screening committee to
12 evaluate the statements of qualification and performance data of
13 those persons on the list prepared pursuant to subsection (c)
14 along with any other pertinent information, including references
15 and reports.  The screening committee shall be comprised of a
16 minimum of three employees of the purchasing agency with
17 sufficient education, training, and licenses or credentials in
18 the area of the services required.  If the purchasing agency and
19 using agency are different, the committee shall include at least
20 one qualified employee from the using agency.  When the committee
21 includes an employee from a using agency, the employee shall be
22 appointed by the head of the using agency.  If qualified
23 employees are not available from these agencies, the officers may

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 1 designate employees of other governmental bodies.  The screening
 2 committee shall establish criteria for the selection, and
 3 evaluate the submissions of persons on the list prepared pursuant
 4 to subsection (c) and any other pertinent information which may
 5 be available to the agency, against that selection criteria.  The
 6 committee may conduct confidential discussions with any person
 7 who is included on the list prepared pursuant to subsection (c)
 8 regarding the services which are required and the services they
 9 are able to provide.  In conducting discussions, there shall be
10 no disclosure of any information derived from proposals submitted
11 by competing offerors.  The committee shall provide the head of
12 the purchasing agency with the names of a minimum of three
13 persons who the committee concludes are the most qualified to
14 provide the services required, with a summary of each of their
15 qualifications.  The contract file shall contain a copy of the
16 criteria established for the selection and the committee's
17 summary of qualifications for each of the persons provided to the
18 head of the purchasing agency by the committee.
19      [(e)] (f)  The head of the purchasing agency shall evaluate
20 the summary of qualifications for each of the persons provided by
21 the screening committee and may conduct additional discussions
22 with any of them.  The head of the purchasing agency shall then
23 rank the persons in order of preference.  The head of the

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 1 purchasing agency shall negotiate a contract with the first
 2 person, including a rate of compensation which is fair and
 3 reasonable, established in writing, and based upon the estimated
 4 value, scope, complexity, and nature of the services to be
 5 rendered.  If a satisfactory contract cannot be negotiated with
 6 the first person, negotiations with that person shall be formally
 7 terminated and negotiations with the second person on the list
 8 shall commence.  Failing accord with the second person,
 9 negotiations with the next person on the list shall commence.  If
10 a contract at a fair and reasonable price cannot be negotiated,
11 the screening committee may be asked to submit a minimum of three
12 additional persons for the head of the purchasing agency to rank,
13 and resume negotiations in the same manner provided in this
14 subsection.  Negotiations shall be conducted confidentially.
15 Each candidate on the list shall be limited to not more than two
16 contracts a year.  If a candidate is not able to successfully
17 negotiate a contract even though given the opportunity to
18 negotiate, the failed negotiations shall count toward the
19 candidate's state professional contract award limit for the year.
20 Once the list of qualified candidates is exhausted, the selection
21 process shall start over, beginning with the notice and
22 invitation requirements set forth in subsection (b).
23      [(f)] (g)  Contracts for professional services of less than

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 1 $25,000 may be negotiated by the head of a purchasing agency,
 2 with any two persons who appear on the list of qualified persons
 3 established pursuant to subsection (c).  Negotiations shall be
 4 conducted in the manner set forth in subsection (e) but without
 5 establishing any order of preference."
 6      SECTION 3.  Statutory material to be repealed is bracketed.
 7 New statutory material is underscored.
 8      SECTION 4.  This Act shall take effect upon its approval.
10                       INTRODUCED BY:_____________________________