Professional Service Contracts

Requires disclosure of names of top qualifiers for professional
service contracts, and annual disclosure of all nonbid contracts
awarded.  (SD1)

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

                   A  BILL  FOR  AN  ACT



 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
19      (3)  Previously unanticipated needs for professional

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                                     S.B. NO.           S.D. 1

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

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                                     S.B. NO.           S.D. 1

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

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                                     S.B. NO.           S.D. 1

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

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                                     S.B. NO.           S.D. 1

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

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                                     S.B. NO.           S.D. 1

 1                making the award; and
 2      (2)  The contracting agency shall make available annually on
 3           the agency's bulletin board and the Internet a report
 4           of all contracts for professional services.  The report
 5           shall include:
 6           (A)  The name of the contracting agency; and
 7           (B)  The amount and type of each contract awarded."
 8      SECTION 2.  New statutory material is underscored.
 9      SECTION 3.  This Act shall take effect upon its approval.