STAND. COM. REP. NO.2934

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2311
                                        H.D. 1
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Government Operations and Housing, to
which was referred H.B. No. 2311, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO THE PROCUREMENT CODE FOR
     DESIGN PROFESSIONAL SERVICES,"

begs leave to report as follows:

     The purpose of this measure is to clarify the selection
process for procurements for professional services by requiring:

     (1)  The consideration of the contractor's experience and
          professional qualifications of its assigned staff in
          the project type;

     (2)  The past performance on projects of similar scope for
          project agencies or private industry.

     This measure also provides that:

     (1)  Contracts awarded shall be posted electronically within
          thirty days of the award;

     (2)  For each fiscal year, all contracts awarded shall be
          published at least once, including the name of the firm
          or individual receiving the contract and the dollar
          amount of the contract.


 
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     Your Committee finds that additional clarification beyond
the provisions in this measure is required and has amended this
measure which was heard on March 23, 2000, as H.B. No. 2311,
H.D. 1, proposed S.D. 1.  The proposed S.D. 1 added provisions:

     (1)  Stating that the purchasing agency shall publish its
          selection criteria with its notice inviting proposals
          for contracts for professional services;

     (2)  Adding the criteria: the capacity to finish the work in
          the required time, and the volume of work previously
          awarded, to the list of major selection criteria;

     (3)  Providing that the major selection criteria be
          considered in descending order of importance and that
          the screening committee may add sub-criterion within
          each major criteria;

     (4)  Providing that the evaluation will consider the
          equitable distribution to Hawaii-based contractors in
          awarding the contracts;

     (5)  Providing that contracts under this section shall be
          posted electronically within three days of the award,
          and that the name of the agency head making the
          selection shall also be posted.

     Testimony in support of the proposed S.D. 1 was received
from the American Institute of Architects, Consulting Structural
Hawaii, American Public Works Associations Hawaii Chapter,
Consulting Engineers Council of Hawaii, American Society of Civil
Engineers, SSFM International, and an individual.

     Testimony in opposition of the proposed S.D. 1 was received
from the Department of Accounting and General Services and the
State Procurement Office.

     Your Committee finds that the implementation of a
qualifications-based system of procuring professional services
and the posting of the results of such a system would help
restore the public's faith in government operations.

     Your Committee also finds that although it is not
appropriate to require the equitable distribution of contracts to
Hawaii-based professionals statutorily, procurement officers are
encouraged to take equitable distribution into consideration when
making contract awards.


 
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     Your Committee has amended H.B. No. 2311, H.D. 1, proposed
S.D. 1, by:

     (1)  Removing the requirement that the screening committee
          shall consider the equitable distribution of contracts
          in making contract awards; and

     (2)  Deleting the three day requirement for posting records
          electronically.

     As affirmed by the record of votes of the members of your
Committee on Government Operations and Housing that is attached
to this report, your Committee is in accord with the intent and
purpose of H.B. No. 2311, H.D. 1, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as H.B. No. 2311, H.D. 1, S.D. 1, and be referred to the
Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Government
                                   Operations and Housing,



                                   ______________________________
                                   ROD TAM, Chair

 
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