REPORT TITLE:
Professional Service Contracts


DESCRIPTION:
Requires disclosure of names of the firms awarded professional
service contracts, and annual disclosure of all nonbid contracts
awarded.  (SB2521 HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2521
THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 2000                                H.D. 1
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO PROFESSIONAL SERVICE CONTRACTS.



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

 1      SECTION 1.  Section 103D-304, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "103D-304  Procurement of professional services.(a)
 
 4 Professional services shall be procured in accordance with
 
 5 sections 103D-302, 103D-303, 103D-305, 103D-306, or 103D-307, or
 
 6 this section.  Contracts for professional services shall be
 
 7 awarded on the basis of demonstrated competence and qualification
 
 8 for the type of services required, and at fair and reasonable
 
 9 prices.
 
10      (b)  At a minimum, before the beginning of each fiscal year,
 
11 the head of each purchasing agency shall publish a notice
 
12 inviting persons engaged in providing professional services which
 
13 the agency anticipates needing in the next fiscal year, to submit
 
14 current statements of qualifications and expressions of interest
 
15 to the agency.  Additional notices may be given if:
 
16      (1)  The response to the initial notice is inadequate;
 
17      (2)  The response to the initial notice does not result in
 
18           adequate representation of available sources; or
 

 
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 1      (3)  Previously unanticipated needs for professional
 
 2           services arise.
 
 3 The chief procurement officer may specify a uniform format for
 
 4 statements of qualifications.  Persons may amend these statements
 
 5 by filing a new statement prior to the date designated for
 
 6 submission.
 
 7      (c)  The head of the purchasing agency shall designate a
 
 8 review committee consisting of a minimum of three employees from
 
 9 the agency or from another governmental body, with sufficient
 
10 education, training, and licenses or credentials for each type of
 
11 professional service which may be required.  The committee 
 
12 shall review and evaluate all submissions and other pertinent
 
13 information, including references and reports, and prepare a list
 
14 of qualified persons to provide these services.  Persons included
 
15 on the list of qualified persons may amend their statements of
 
16 qualifications as necessary or appropriate.  Persons shall
 
17 immediately inform the head of the purchasing agency of any
 
18 change in information furnished which would disqualify the person
 
19 from being considered for a contract award.
 
20      (d)  Whenever during the course of the fiscal year the
 
21 agency needs a particular professional service, the head of the
 
22 purchasing agency shall designate a screening committee to
 
23 evaluate the statements of qualification and performance data of
 

 
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 1 those persons on the list prepared pursuant to subsection (c)
 
 2 along with any other pertinent information, including references
 
 3 and reports.  The screening committee shall be comprised of a
 
 4 minimum of three employees of the purchasing agency with
 
 5 sufficient education, training, and licenses or credentials in
 
 6 the area of the services required.  If the purchasing agency and
 
 7 using agency are different, the committee shall include at least
 
 8 one qualified employee from the using agency.  When the committee
 
 9 includes an employee from a using agency, the employee shall be
 
10 appointed by the head of the using agency.  If qualified
 
11 employees are not available from these agencies, the officers may
 
12 designate employees of other governmental bodies.  The screening
 
13 committee shall establish criteria for the selection, and
 
14 evaluate the submissions of persons on the list prepared pursuant
 
15 to subsection (c) and any other pertinent information which may
 
16 be available to the agency, against that selection criteria.  The
 
17 committee may conduct confidential discussions with any person
 
18 who is included on the list prepared pursuant to subsection (c)
 
19 regarding the services which are required and the services they
 
20 are able to provide.  In conducting discussions, there shall be
 
21 no disclosure of any information derived from proposals submitted
 
22 by competing offerors.  The committee shall provide the head of
 
23 the purchasing agency with the names of a minimum of three
 

 
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 1 persons who the committee concludes are the most qualified to
 
 2 provide the services required, with a summary of each of their
 
 3 qualifications.  The contract file shall contain a copy of the
 
 4 criteria established for the selection and the committee's
 
 5 summary of qualifications for each of the persons provided to the
 
 6 head of the purchasing agency by the committee.
 
 7      (e)  The head of the purchasing agency shall evaluate the
 
 8 summary of qualifications for each of the persons provided by the
 
 9 screening committee and may conduct additional discussions with
 
10 any of them.  The head of the purchasing agency shall then rank
 
11 the persons in order of preference.  The head of the purchasing
 
12 agency shall negotiate a contract with the first person,
 
13 including a rate of compensation which is fair and reasonable,
 
14 established in writing, and based upon the estimated value,
 
15 scope, complexity, and nature of the services to be rendered.  If
 
16 a satisfactory contract cannot be negotiated with the first
 
17 person, negotiations with that person shall be formally
 
18 terminated and negotiations with the second person on the list
 
19 shall commence.  Failing accord with the second person,
 
20 negotiations with the next person on the list shall commence.  If
 
21 a contract at a fair and reasonable price cannot be negotiated,
 
22 the screening committee may be asked to submit a minimum of three
 
23 additional persons for the head of the purchasing agency to rank,
 

 
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 1 and resume negotiations in the same manner provided in this
 
 2 subsection.  Negotiations shall be conducted confidentially.
 
 3      (f)  Contracts for professional services of less than
 
 4 $25,000 may be negotiated by the head of a purchasing agency,
 
 5 with any two persons who appear on the list of qualified persons
 
 6 established pursuant to subsection (c).  Negotiations shall be
 
 7 conducted in the manner set forth in subsection (e) but without
 
 8 establishing any order of preference.
 
 9      (g)  Contracts for professional services of $250,000 or more
 
10 shall be negotiated in the manner set forth in subsection (e);
 
11 provided that:
 
12      (1)  The contracting agency, within     days of awarding any
 
13           contract under subsection (e), shall post on the
 
14           agency's bulletin board and make available on the
 
15           internet:
 
16           (A)  The name of the firm or individual awarded the
 
17                contract; and
 
18           (B)  The amount of the contract awarded;
 
19           and
 
20      (2)  The contracting agency shall make available annually on
 
21           the agency's bulletin board and the internet a report
 
22           of all contracts for professional services.  The report
 
23           shall include:
 

 
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 1           (A)  The name of the contracting agency; and
 
 2           (B)  The amount and type of each contract awarded."
 
 3      SECTION 2.  New statutory material is underscored.
 
 4      SECTION 3.  This Act shall take effect upon its approval.