Report Title:

Procurement; Competitive Sealed Proposals; Design-build

 

Description:

Allows design-build construction proposals to be submitted. Requires development of a short list of offerors from whom proposals will be requested. Requires purchasing agency to pay unsuccessful offerors $5,000 plus one-half per cent of the project construction cost to allow the State to use certain designs submitted in a technically responsive proposal. (SD1)

 

THE SENATE

S.B. NO.

558

TWENTY-FIRST LEGISLATURE, 2001

S.D. 1

STATE OF HAWAII

  

 

A BILL FOR AN ACT

 

relating to procurement.

 

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

SECTION 1. Chapter 103D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§103D-   Best value policy for competitive sealed proposals. Each purchasing agency shall ensure that it determines the most advantageous offer by evaluating and comparing all relevant factors in addition to price so that the overall combination that best serves the State is selected. These factors may include, in addition to others, availability, performance history of the offeror, quality of goods, services, or construction, and proposed technical performance."

SECTION 2. Section 103D-303, Hawaii Revised Statutes, is amended to read as follows:

"§103D-303 Competitive sealed proposals. (a) Competitive sealed proposals may be utilized to procure goods, services, or construction designated in rules adopted by the procurement policy board as goods, services, or construction which are either not practicable or not advantageous to the State to procure by competitive sealed bidding. Competitive sealed proposals may also be utilized when the head of a purchasing agency determines in writing that the use of competitive sealed bidding is either not practicable or not advantageous to the State. Construction may be procured using the design-build process of combining design professional and construction contract services into a single contract when the head of a purchasing agency determines in writing that technical or construction innovation will yield enhanced results, or there is a reduced likelihood of receiving competitive sealed bids due to unique project conditions or geographical location.

(b) Proposals shall be solicited through a request for proposals. A design-build offeror shall only be a person licensed as a design professional under chapter 464 or as a contractor under chapter 444.

(c) Notice of the request for proposals shall be given in the same manner as provided in section 103D-302(c). For design-build proposals a two-step process shall be used. The first step shall be a request for qualifications to develop a short list of a minimum of three and a maximum of five offerors. The short list selection criteria in descending order of importance shall be:

(1) Experience in the project type and professional qualifications of the staff to be assigned to the project;

(2) Past performance on projects of similar scope for public agencies and private industry; and

(3) Capacity to accomplish the work in the required time.

The second step of the process shall be a proposal from each short listed offeror.

(d) Proposals shall be opened so as to avoid disclosure of contents to competing offerors during the process of negotiation. A register of proposals shall be prepared in accordance with rules adopted by the policy board and shall be open for public inspection after contract award.

(e) The request for proposals shall state the relative importance of price and other evaluation factors.

(f) Discussions may be conducted with responsible offerors who submit proposals determined to be reasonably susceptible of being selected for award for the purpose of clarification to assure full understanding of, and responsiveness to, the solicitation requirements. Offerors shall be accorded fair and equal treatment with respect to any opportunity for discussion and revision of proposals, and revisions may be permitted after submissions and prior to award for the purpose of obtaining best and final offers. In conducting discussions, there shall be no disclosure of any information derived from proposals submitted by competing offerors.

(g) Award shall be made to the responsible offeror whose proposal is determined in writing to be the [most advantageous taking into consideration price and the evaluation factors set forth in the request for proposals. No other factors or criteria shall be used in the evaluation.] best value for the purchasing agency after evaluating and considering factors set forth in the request for proposals in addition to price. The contract file shall contain the basis on which the award is made.

(h) For design-build proposals with estimated construction costs equal to or greater than $25,000,000, the purchasing agency shall pay to each unsuccessful offeror who is a state contractor and submits a technically responsive proposal $5,000 plus one-half per cent of the project construction cost; provided that no more than $500,000 shall be paid to any unsuccessful offeror under this section. As a condition of receiving this payment, an unsuccessful offeror shall allow the State to use submitted designs, not otherwise encumbered by patents or the like, created during the process. For purposes of this section, a "state contractor" means a person who:

(1) Is licensed as a contractor pursuant to chapter 444;

(2) Is licensed to conduct business in this State pursuant to section 237-9;

(3) Submits a bid under the name appearing on the person's current contracting or business license;

(4) Is a domestic corporation, partnership, or business organized or formed under the laws of the State;

(5) Has maintained its principal place of business within the State for at least two-hundred consecutive days prior to the submission of a bid;

(6) Has filed a Hawaii resident income tax and all other applicable tax returns for the preceding tax year and has paid all amounts owing on those tax returns;

(7) Has complied with all applicable Hawaii employment, insurance, and worker's compensation laws;

(8) If an employer with one or more employees, eighty-five per cent of its employees are state residents; and

(9) If a joint venture, is composed entirely of entities that qualify under paragraphs (1) to (8) and eighty-five per cent of all the employees of the joint venture are state residents."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2001.