STAND. COM. REP. NO.  378-10

Honolulu, Hawaii

                , 2010

RE:   H.B. No. 2441

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Sir:

     Your Committee on Economic Revitalization, Business, & Military Affairs, to which was referred H.B. No. 2441 entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

     The purpose of this measure is to direct effective stimulus to Hawaii's economy.

Specifically, the measure requires the Department of Hawaiian Home Lands; Department of Transportation; county boards of water supply; and county departments of housing, planning and permitting, and transportation to award public contracts within thirty days of the contract bid opening date.

     Testimony in support of this measure was submitted by the Department of Hawaiian Home Lands and the General Contractors Association of Hawaii.  The Department of Transportation supported this measure with amendments.  Testimony in opposition to this measure was submitted by the State Procurement Office.

     Your Committee believes that this measure will streamline the manner in which specified procurements are made, thereby funneling much-needed funds into local businesses and industries.  Your Committee acknowledges that the realities of preparing and evaluating proposals for some types of projects may require more than thirty days to award a contract in a manner that provides the best value for the State.

Your Committee has amended this measure by:

(1)  Specifying that the time limit shall not apply if the lowest responsible bid exceeds the available funding for the contract;

(2)  Permitting an unspecified extension of time for contract negotiations with the lowest responsible bidder relating to considerations that could be beneficial to the public; and

(3)  Specifying that contracts for design professional services provided by licensees under chapter 464, Hawaii Revised Statutes, shall be awarded within forty-five days of the bid opening date; and

(4)  Making technical non-substantive amendments for the purposes of clarity and style.

     As affirmed by the record of votes of the members of your Committee on Economic Revitalization, Business, & Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2441, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2441, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Economic Revitalization, Business, & Military Affairs,

____________________________

ANGUS L.K. MCKELVEY, Chair