REPORT TITLE:
Competitive Sealed Contracts


DESCRIPTION:
Requires that each purchasing agency take all relevant factors
into account when determining the most advantageous offer.
Allows a contract to be awarded to an offeror in order to avoid a
monopoly in the marketplace or to promote competition. (HB2088
HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2088
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
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 two new sections to be appropriately designated
 
 3 and to read as follows:
 
 4      "§103D-      Best value policy for competitive sealed
 
 5 proposals.  Each purchasing agency shall ensure that it
 
 6 determines the most advantageous offer by evaluating and
 
 7 comparing all relevant factors in addition to price so that the
 
 8 overall combination that best serves the State is selected.
 
 9 These factors may include in addition to others, availability,
 
10 total cost of ownership, performance history of the offeror,
 
11 quality of goods, services, or construction, and proposed
 
12 technical performance.  A contract may be awarded to an offeror
 
13 to avoid a monopoly in the marketplace, or if such award will for
 
14 future, similar contracts, promote competition in the marketplace
 
15 for the type of goods, services, or construction provided in the
 
16 contract when the competitive sealed proposal was approved by the
 
17 chief procurement officer.
 
18      103D-      Attorney general review.  In instances where a
 
19 purchasing agency determines a contract shall be awarded to avoid
 
20 a monopoly or promote competition pursuant to section 103D-
 
21 301(1), the proposal must be submitted to the attorney general
 
Page 2                                                     2088
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 for review.  No contract shall be awarded for these reasons
 
 2 without approval by the attorney general."
 
 3      SECTION 2  Section 103D-301, Hawaii Revised Statutes, is
 
 4 amended to read as follows:
 
 5      "[[]§103D-301[]]  Methods of source selection.  Unless
 
 6 otherwise authorized by law, all contracts shall be awarded by
 
 7 [competitive sealed bidding pursuant to section 103D-302, except
 
 8 as provided in]:
 
 9      (1)  Section 103D-302 (Competitive sealed bidding);
 
10     [(1)] (2) Section 103D-303 (Competitive sealed proposals);
 
11     [(2)] (3) Section 103D-304 (Professional services
 
12           procurement);
 
13     [(3)] (4) Section 103D-305 (Small purchases);
 
14     [(4)] (5) Section 103D-306 (Sole source procurement); [and]
 
15           or
 
16     [(5)] (6) Section 103D-307 (Emergency procurements)."
 
17     SECTION 3.  Section 103D-303, Hawaii Revised Statutes, is
 
18 amended by amending subsection (a) to read as follows:
 
19     "(a) Competitive sealed proposals may be utilized to procure
 
20 goods, services, or construction [designated in] pursuant to
 
21 rules adopted by the procurement policy board [as goods,
 
22 services, or construction which are either not practicable or not
 

 
 
 
Page 3                                                     2088
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 advantageous to the State to procure by competitive sealed
 
 2 bidding.  Competitive sealed proposals may also be utilized when
 
 3 the head of a purchasing agency determines in writing that the
 
 4 use of competitive sealed bidding is either not practicable or
 
 5 not advantageous to the State]."
 
 6     SECTION 4.  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-301(1)."
 
12     SECTION 5.  Section 103D-303, Hawaii Revised Statutes, is
 
13 amended by amending subsection (g) to read as follows:
 
14     "(g)  Award shall be made to the responsible offeror whose
 
15 proposal is determined in writing to be the [most advantageous
 
16 taking into consideration price and the evaluation factors set
 
17 forth in the request for proposals.  No other factors or criteria
 
18 shall be used in the evaluation.] best value for the purchasing
 
19 agency after evaluating and considering factors set forth in the
 
20 request for proposals in addition to price.  The contract file
 
21 shall contain the basis on which the award is made."
 
22     SECTION 5.  Statutory material to be repealed is bracketed.
 
23 New statutory material is underscored.
 
24     SECTION 6.  This Act shall take effect on July 1, 2000.