SR19 SD1 SSCR3411

STAND. COM. REP. NO.3411

Honolulu, Hawaii

, 2002

RE: S.R. No. 19

S.D. 1

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.R. No. 19, S.D. 1, entitled:

"SENATE RESOLUTION REQUESTING A REVIEW OF THE PERFORMANCE INFORMATION PROCUREMENT SYSTEM,"

begs leave to report as follows:

The purpose of this measure is to request a review of the Department of Accounting and General Services' performance information procurement system.

More specifically, this measure:

(1) Requests the Comptroller to form an advisory committee to review and make recommendations to improve the Department of Accounting and General Services' performance information procurement system;

(2) Requests the Comptroller to appoint representatives from construction industry employer organizations, construction employee organizations, and other interested construction industry organizations to the advisory committee; and

(3) Requests the advisory committee to determine, among other things, whether the performance information procurement system has resulted in cost savings to the State, greater accountability by contractors, and a lower number of change orders; and

(4) Requests the advisory committee to determine whether projects under the performance information procurement system are equitably and widely distributed, and whether alternative forms of outsourcing have produced comparable quality, timeliness, and work distribution.

Your Committee finds that the Department of Accounting and General Services initiated the performance information procurement system to ensure that the State's "low-bid" procurement system considered other relevant selection criteria, such as contractor performance and material quality, in addition to price. Your Committee believes that it is time to assess whether the performance information procurement system is meeting its goals of lower costs, greater accountability, fewer change orders, and better work product.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee concurs with the intent and purpose of S.R. No. 19, S.D. 1, and recommends its adoption.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

		____________________________ BRIAN T. TANIGUCHI, Chair