Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Transportation, Military Affairs and Government Operations, to which was referred H.C.R. No. 42, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to request the Department of Accounting and General Services (DAGS) to convene an advisory committee to make recommendations to improve the Performance Information Purchase System (PIPS).

Testimony in support of this measure was submitted by DAGS. West Pac Hawaii submitted testimony in opposition to this measure and Manufacturers Agency Pacific, Inc., submitted comments.

Your Committee finds that the implementation of PIPS must be evaluated to determine whether the system has met the goals of greater accountability, reduced costs, fewer change orders, and better overall work product. PIPS must also be reviewed to determine whether state contracts under PIPS are being awarded to only a small handful of contractors.

Therefore, your Committee supports this measure to form an advisory committee for that purpose. Your Committee notes that the advisory committee shall include representatives of construction industry employer organizations and employee organizations.

As affirmed by the record of votes of the members of your Committee on Transportation, Military Affairs and Government Operations that is attached to this report, your Committee concurs with the intent and purpose of H.C.R. No. 42, H.D. 1, and recommends its adoption.