STAND. COM. REP. NO. 3609

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 2178

       H.D. 1

       S.D. 2

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred H.B. No. 2178, H.D. 1, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to increase the amount of the cash or protest bond that must be posted by a party initiating a procurement award protest for a contract valued at $1,000,000 or more.

 

     Your Committee received written comments in support of this measure from the State Procurement Office, the Department of Accounting and General Services, the Department of Transportation, and Roberts Hawaii.

 

     Your Committee received written comments in opposition to this measure from one concerned individual.

 

     Your Committee received written comments on this measure from the Department of the Attorney General.

 

     Your Committee finds that increasing the amount of a cash or protest bond that must be posted by a party initiating a procurement award protest could effectively deter the filing of frivolous protests, thus decreasing delays in the bid process for procurement contracts.

 

     Your Committee has amended this measure by:

 

(1)  Changing the percentage of the estimated value of a contract that must be equaled by a cash or protest bond from five percent back to one-half percent; and

 

(2)  Changing the maximum required amount of a cash or protest bond from $10,000,000 to $25,000.

 

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2178, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2178, H.D. 1, S.D. 2.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

 

 

________________________________

DONOVAN M. DELA CRUZ, Chair