Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Transportation and Government Operations, to which was referred S.B. No. 1136 entitled:

begs leave to report as follows:

The purpose of this measure is to require competitive bidding on small purchases of construction contracts for drilling and soil testing.

Your Committee received testimony in support of this measure from Leslie's Drilling Co. Testimony in opposition was received from the Department of Accounting and General Services (DAGS). Your Committee received comments on this measure from the State Procurement Office.

According to testimony of DAGS, in most instances the State has a need for general construction work, of which drilling and soil testing are sub-parts. It is neither practical nor beneficial for the State to procure the drilling and soil testing from other than the general contractor which can provide that work.

Your Committee nonetheless believes that drilling and soil testing contractors should not be effectively excluded from bidding on projects because the general contractor has absorbed that work. Your Committee is concerned about the small business contractor in this line of work that needs to survive financially with government contracts.

Your Committee has amended this measure by changing the effective date to July 1, 2020, in the interests of further discussions.

As affirmed by the record of votes of the members of your Committee on Transportation and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1136, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1136, S.D. 1, and be referred to the Committee on Ways and Means.