STAND. COM. REP. NO. 867

 

Honolulu, Hawaii

                

 

RE:    S.B. No. 788

       S.D. 2

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 788, 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 efficiency and cost-effectiveness in public procurement.

 

     Specifically, this measure:

 

     (1)  Allows selection committees for the procurement of professional services to weigh the selection criteria listed in section 103D-304(e), Hawaii Revised Statutes, in the order of importance relevant to their agency and project;

 

     (2)  Requires the State Procurement Office to develop a vendor performance information system;

 

     (3)  Authorizes the head of a procurement agency to negotiate an adjustment of an otherwise successful bid for construction procurement to ensure that the bid amount is reasonable and realistic for the scope of the construction project;

 

     (4)  Allows a bidder of a public works construction project to clarify and correct non-material or technical issues with subcontractor listings for up to twenty-four hours after the bid submission deadline; and

 

     (5)  Requires bids for construction to be opened no earlier than twenty-four hours after the bid submission deadline.

 

     Your Committee received written comments in support of this measure from the Subcontractors Association of Hawaii.

 

     Your Committee received written comments in opposition to this measure from the Department of Budget and Fiscal Services of the City and County of Honolulu; Department of Design and Construction of the City and County of Honolulu; Painters Industry of Hawaii Labor Management Cooperation Trust Fund; Hawaii Tapers Market Recovery Fund; Hawaii Glaziers, Architectural Metal Glassworkers Local Union 1889 AFL-CIO Stabilization Trust Fund; Carpet, Linoleum and Soft Tile Local Union 1926 Market Recovery Trust Fund; Hawaii Iron Workers Stabilization Fund; and Ironworkers Local 625.

 

     Your Committee received written comments on this measure from the Department of Accounting and General Services, State Procurement Office, Plumbing and Mechanical Contractors Association of Hawaii, Electrical Contractors Association, Plumbers and Fitters United Association Local 675, and General Contractors Association of Hawaii.

 

     Your Committee finds that this measure implements certain recommendations of the procurement policy review conducted pursuant to House Resolution No. 142, Regular Session of 2016.  Your Committee further finds that the recommendations made pursuant to the procurement policy review are meant to increase economy, efficiency, effectiveness, and impartiality in public procurement by aligning the state procurement process with the federal procurement process.

 

     Your Committee has amended this measure by:

 

     (1)  Adding language prohibiting a bidder from adding or substituting listed joint subcontractors when clarifying or correcting non-material or technical issues with subcontractor listings; and

 

     (2)  Making technical nonsubstantive changes for purposes of clarity, consistency, and style.

 

     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 S.B. No. 788, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 788, S.D. 2.

 

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

 

 

 

________________________________

DONOVAN M. DELA CRUZ, Chair