REPORT TITLE:
Competitive Sealed Contracts


DESCRIPTION:
Amends the procurement laws relating to competitive sealed bids
and competitive sealed proposals to allow consideration of effect
of the award on competition in the marketplace and the cost,
availability, and quality of services, goods, or construction
provided under future, similar contracts.  Competitive sealed
bids and proposals need not be awarded to the lowest bidder if
the award furthers the public interest in a marketplace that
fosters lowest cost, highest quality, and ready availability of
goods, services, or construction under contracts of a similar
nature.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2088
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO PROCUREMENT.



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

 1      SECTION 1.  Chapter 103D, Hawaii Revised Statutes, is
 
 2 amended by adding a new section to read as follows:
 
 3      "§103D-     Competitive marketplace criteria for competitive
 
 4 sealed bids and proposals.  In high capitalization industries in
 
 5 which long-term contracts are awarded, and other industries where
 
 6 contract awards under this section have a substantial effect on
 
 7 competition in the marketplace and the cost, availability, or
 
 8 quality of the type of goods, services, or construction provided
 
 9 under the contract, evaluation of bids shall include
 
10 consideration of the effect that the contract award will have on
 
11 marketplace competition, and the cost, availability, and quality
 
12 of the type of goods, services, or construction provided under
 
13 similar contracts.  A contract may be awarded to a bidder other
 
14 than the lowest bidder to avoid a monopoly in the marketplace, or
 
15 if such award will for future, similar contracts, promote the
 
16 interest in availability, lowest cost, or highest quality of the
 
17 type of goods, services, or construction provided in the
 
18 contract.  The policy board shall adopt rules to implement this
 
19 section."
 

 
Page 2                                                     2088
                                     H.B. NO.           
                                                        
                                                        

 
 1      SECTION 2.  Section 103D-302, Hawaii Revised Statutes, is
 
 2 amended as follows:
 
 3      1.  By amending subsection (f) to read:
 
 4      "(f)  Bids shall be evaluated based on the requirements set
 
 5 forth in the invitation for bids.  These requirements may include
 
 6 criteria to determine acceptability such as inspection, testing,
 
 7 quality, workmanship, delivery, and suitability for a particular
 
 8 purpose.  Those criteria that will affect the bid price and be
 
 9 considered in evaluation for award shall be objectively
 
10 measurable, such as discounts, transportation costs, and total or
 
11 life cycle costs.  The requirements shall include and be
 
12 consistent with criteria under section 103D-   .  The invitation
 
13 for bids shall set forth the evaluation criteria to be used.  No
 
14 criteria may be used in bid evaluation that are not set forth in
 
15 the invitation for bids."
 
16      2.  By amending subsection (h) to read:
 
17      "(h)  [The] Except as provided in section 103D-   , the
 
18 contract shall be awarded with reasonable promptness by written
 
19 notice to the lowest responsible and responsive bidder whose bid
 
20 meets the requirements and criteria set forth in the invitation
 
21 for bids.  In the event all bids exceed available funds as
 
22 certified by the appropriate fiscal officer, the head of the
 
23 purchasing agency responsible for the procurement in question is
 

 
Page 3                                                     2088
                                     H.B. NO.           
                                                        
                                                        

 
 1 authorized in situations where time or economic considerations
 
 2 preclude resolicitation of work of a reduced scope to negotiate
 
 3 an adjustment of the bid price, including changes in the bid
 
 4 requirements, with the low responsible and responsive bidder, in
 
 5 order to bring the bid within the amount of available funds."
 
 6      SECTION 3.  Section 103D-303, Hawaii Revised Statutes, is
 
 7 amended by amending subsection (e) to read as follows:
 
 8      "(e)  The request for proposals shall state the relative
 
 9 importance of price and other evaluation factors.  The evaluation
 
10 factors and their relative importance shall include and be
 
11 consistent with criteria under section 103D-   ."
 
12      SECTION 4.  Statutory material to be repealed is bracketed.
 
13 New statutory material is underscored.
 
14      SECTION 5.  This Act shall take effect upon its approval.
 
15 
 
16                       INTRODUCED BY:  ___________________________