STAND. COM. REP. NO.  289

 

Honolulu, Hawaii

                , 2009

 

RE:   H.B. No. 378

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Sir:

 

     Your Committee on Transportation, to which was referred H.B. No. 378 entitled:

 

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

 

begs leave to report as follows:

 

     The purpose of this bill is to allow the Department of Transportation (DOT) to obtain security services at Hawaii's airports in a fair and equitable manner without compromising safety by allowing DOT to award its security contracts by negotiations rather than by a bidding process.

 

     Securitas Security Services USA, Inc. testified in support of this bill.  DOT did not support this bill.

 

     The security and regulatory requirements at Hawaii's airports have changed dramatically since the terrorist attacks of September 11, 2001.  Many of these requirements have become classified and determined to be sensitive.  Furthermore, security requirements at Hawaii's airports are in constant flux as the Transportation Security Administration, United States Department of Homeland Security, and other federal security agencies issue new directives, regulations, and requirements for staffing, security, and other operational matters.

 

     According to DOT, these multiple changes in security requirements do not pose much of a problem for other airports nationwide because a majority of airports handle security with their own security forces.  However, Hawaii is unique in that DOT contracts out most of its airport security needs.  This poses a problem for security companies bidding on the airport security contracts because, although they may be the lowest bidder, additional cost factors that the bidder must bear in performing the security service are not revealed to the bidder until after a contract has been awarded.  Although this is understandable from a security standpoint, the bidder may not be able to meet the security needs of the airport without suffering financial loss or cutting back on services.  Allowing DOT to negotiate security contracts rather than award these contracts with a bidding process may solve this problem.

 

     However, your Committee understands DOT's concerns regarding reducing competition by using a non-bid process.  Nevertheless, this measure deserves further consideration and your Committee has amended this bill by changing its effective date to July 1, 2050, to encourage further discussion.

 

     Technical, nonsubstantive amendments were also made for clarity, consistency, and style.

 

     As affirmed by the record of votes of the members of your Committee on Transportation that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 378, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 378, H.D. 1, and be referred to the Committee on Finance.

 

Respectfully submitted on behalf of the members of the Committee on Transportation,

 

 

 

 

____________________________

JOSEPH M. SOUKI, Chair