REPORT TITLE:
Procurement; Prof. Services


DESCRIPTION:
Excludes professional services relating to construction from the
procurement law on procuring professional services.  Provides
solicitation procedures for professionals who provide services
relating to construction.  (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO PROCUREMENT OF PROFESSIONAL SERVICES. 


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

 1      SECTION 1.  The legislature is committed to the growth of
 
 2 small and medium sized businesses, however, the legislature finds
 
 3 that many qualified architects and engineers are not receiving
 
 4 state contracts, which will enable their businesses to grow.  The
 
 5 purpose of this Act is provide for the procurement of services
 
 6 from qualified architects, engineers, and professionals in order
 
 7 to promote the growth of small and medium sized businesses in
 
 8 Hawaii.
 
 9      SECTION 2.  Section 103D-304, Hawaii Revised Statutes, is
 
10 amended to read as follows:
 
11      "§103D-304  Procurement of professional services.(a)
 
12 Professional services shall be procured in accordance with
 
13 sections 103D-302, 103D-303, 103D-305, 103D-306, or 103D-307, or
 
14 this section.  Contracts for professional services shall be
 
15 awarded on the basis of demonstrated competence and qualification
 
16 for the type of services required, and at fair and reasonable
 
17 prices.
 
18      (b)  At a minimum, before the beginning of each fiscal year,
 
19 the head of each purchasing agency shall publish a notice
 

 
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 1 inviting persons engaged in providing professional services which
 
 2 the agency anticipates needing in the next fiscal year, to submit
 
 3 current statements of qualifications and expressions of interest
 
 4 to the agency.  Additional notices may be given if:
 
 5      (1)  The response to the initial notice is inadequate;
 
 6      (2)  The response to the initial notice does not result in
 
 7           adequate representation of available sources; or
 
 8      (3)  Previously unanticipated needs for professional
 
 9           services arise.
 
10 The chief procurement officer may specify a uniform format for
 
11 statements of qualifications.  Persons may amend these statements
 
12 by filing a new statement prior to the date designated for
 
13 submission.
 
14      (c)  The head of the purchasing agency shall designate a
 
15 review committee consisting of a minimum of three employees from
 
16 the agency or from another governmental body, with sufficient
 
17 education, training, and licenses or credentials for each type of
 
18 professional service which may be required.  The committee shall
 
19 review and evaluate all submissions and other pertinent
 
20 information, including references and reports, and prepare a list
 
21 of qualified persons to provide these services.  Persons included
 
22 on the list of qualified persons may amend their statements of
 
23 qualifications as necessary or appropriate.  Persons shall
 

 
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 1 immediately inform the head of the purchasing agency of any
 
 2 change in information furnished which would disqualify the person
 
 3 from being considered for a contract award.
 
 4      (d)  Whenever during the course of the fiscal year the
 
 5 agency needs a particular professional service, the head of the
 
 6 purchasing agency shall designate a screening committee to
 
 7 evaluate the statements of qualification and performance data of
 
 8 those persons on the list prepared pursuant to subsection (c)
 
 9 along with any other pertinent information, including references
 
10 and reports.  The screening committee shall be comprised of a
 
11 minimum of three employees of the purchasing agency with
 
12 sufficient education, training, and licenses or credentials in
 
13 the area of the services required.  If the purchasing agency and
 
14 using agency are different, the committee shall include at least
 
15 one qualified employee from the using agency.  When the committee
 
16 includes an employee from a using agency, the employee shall be
 
17 appointed by the head of the using agency.  If qualified
 
18 employees are not available from these agencies, the officers may
 
19 designate employees of other governmental bodies.  The screening
 
20 committee shall establish criteria for the selection, and
 
21 evaluate the submissions of persons on the list prepared pursuant
 
22 to subsection (c) and any other pertinent information which may
 
23 be available to the agency, against that selection criteria.  The
 

 
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 1 committee may conduct confidential discussions with any person
 
 2 who is included on the list prepared pursuant to subsection (c)
 
 3 regarding the services which are required and the services they
 
 4 are able to provide.  In conducting discussions, there shall be
 
 5 no disclosure of any information derived from proposals submitted
 
 6 by competing offerors.  The committee shall provide the head of
 
 7 the purchasing agency with the names of a minimum of three
 
 8 persons who the committee concludes are the most qualified to
 
 9 provide the services required, with a summary of each of their
 
10 qualifications.  The contract file shall contain a copy of the
 
11 criteria established for the selection and the committee's
 
12 summary of qualifications for each of the persons provided to the
 
13 head of the purchasing agency by the committee.
 
14      (e)  The head of the purchasing agency shall evaluate the
 
15 summary of qualifications for each of the persons provided by the
 
16 screening committee and may conduct additional discussions with
 
17 any of them.  The head of the purchasing agency shall then rank
 
18 the persons in order of preference.  The head of the purchasing
 
19 agency shall negotiate a contract with the first person,
 
20 including a rate of compensation which is fair and reasonable,
 
21 established in writing, and based upon the estimated value,
 
22 scope, complexity, and nature of the services to be rendered.  If
 
23 a satisfactory contract cannot be negotiated with the first
 

 
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 1 person, negotiations with that person shall be formally
 
 2 terminated and negotiations with the second person on the list
 
 3 shall commence.  Failing accord with the second person,
 
 4 negotiations with the next person on the list shall commence.  If
 
 5 a contract at a fair and reasonable price cannot be negotiated,
 
 6 the screening committee may be asked to submit a minimum of three
 
 7 additional persons for the head of the purchasing agency to rank,
 
 8 and resume negotiations in the same manner provided in this
 
 9 subsection.  Negotiations shall be conducted confidentially.
 
10      (f)  Contracts for professional services of less than
 
11 $25,000 may be negotiated by the head of a purchasing agency,
 
12 with any two persons who appear on the list of qualified persons
 
13 established pursuant to subsection (c).  Negotiations shall be
 
14 conducted in the manner set forth in subsection (e) but without
 
15 establishing any order of preference.
 
16      (g)  This section shall not apply to professional services
 
17 relating to construction.  Solicitations for professional
 
18 services relating to construction shall be subject to the
 
19 competitive sealed proposal procedure set forth in section 103D-
 
20 303.  For the purposes of this subsection, professional services
 
21 relating to construction shall include but not be limited to
 
22 architectural and engineering services." 
 
23      SECTION 3.  New statutory material is underscored.
 
24      SECTION 4.  This Act shall take effect upon its approval.