Report Title:

Procurement; GSA

Description:

Exempts GSA-approved sole source vendors on procurements involving federal matching funds from certain sole source procurement provisions.  Clarifies small purchases for construction contracts.  Raises small purchases procurement limit to $100,000.  Effective July 1, 2050.  Sunsets July 1, 2011.  (SD1)

THE SENATE	S.B. NO.	705
TWENTY-FIFTH LEGISLATURE, 2009		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO HAWAII PUBLIC PROCUREMENT CODE.

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

Part I

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

"§103D‑   Exemption for General Services Administration-approved sole source vendor. (a) A bidder or offeror who is a United States General Services Administration-approved sole source vendor, shall be exempt from complying with sections 103D‑302, 103D-303, or 103D-304, as applicable, in any procurement funded by state and federal matching funds.

(b)  Subsection (a) shall apply only if the United States General Services Administration-approved sole source vendor was responsible for obtaining the federal funding."

Part II

     SECTION 2.  Notwithstanding any provision of law to the contrary, including chapter l03D, Hawaii Revised Statutes, procurements of $100,000 or less for goods and services shall be treated as small purchases under section l03D-305, Hawaii Revised Statutes.

     SECTION 3.  Notwithstanding any provision of law to the contrary, including chapter l03D, Hawaii Revised Statutes, construction contracts of less than $250,000 shall be treated as small purchases under section 103D-305, Hawaii Revised Statutes; provided however that each such construction contract shall require a performance bond to be secured and delivered to the purchasing agency that is:

     (1)  In a form prescribed by the rules of the policy board;

     (2)  Executed by a surety company authorized to do business in this State; and

     (3)  In an amount equal to one hundred per cent of the price specified in the contract;

or otherwise secured in a manner satisfactory to the purchasing agency."

Part III

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2050 and shall be repealed on July 1, 2011.