STAND. COM. REP. NO. 756-04

Honolulu, Hawaii

, 2004

RE: H.B. No. 1103

H.D. 2

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 1103, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

The purpose of this bill is to ensure fairness and openness in the procurement process by:

(1) Mandating the establishment of a Hawaii Procurement Institute in cooperation with the University of Hawaii law school and other public and private entities or persons to, among other things, improve the procurement laws and provide education and training for Hawaii's contractors;

(2) Allowing greater flexibility by the heads of purchasing agencies in designating members of the review and selection committees for professional services applicants and contracts;

(3) Allowing selection committees to rank a minimum of three applicants based on selection criteria and send the ranking to the heads of the purchasing agencies;

(4) Allowing only professional contracts worth $25,000 or more to be posted electronically for a year;

(5) Providing for the procurement of design professional services through procedures that meet national standards; and

(6) Requiring the Department of Accounting and General Services (DAGS), in cooperation with the State Procurement Office (SPO) and Procurement Policy Board, to study preferences and set-asides for small businesses and other groups and draft proposed legislation for the 2004 Regular Session of the Legislature.

DAGS and SPO supported the intent of this bill.

After careful consideration, your Committee has amended this bill by deleting its contents and replacing it with language that requires policy boards to adopt rules to promote the growth and development of small businesses and consider for inclusion provisions that:

(1) Provide set-asides to small businesses in appropriate classifications of requirements susceptible to performance by small businesses; and

(2) Impose mandatory evaluation criteria designed to encourage the use of small businesses as subcontractors on large contracts not susceptible to performance by small businesses.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1103, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1103, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

 

____________________________

DWIGHT Y. TAKAMINE, Chair