STAND. COM. REP. NO. 1162

Honolulu, Hawaii

RE:    H.B. No. 985

       H.D. 2

       S.D. 2

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B. No. 985, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

     The purpose and intent of this measure is to authorize the use of a two-step design-build procurement process to procure contracts for public construction projects.

In addition, this measure provides for the payment of a conceptual design fee to qualified offerors who submit a technically responsive design-build proposal but who are not awarded the contract.

     Your Committee received comments in support of this measure from Daniel Chun, Government Affairs Chair, American Institute of Architects; John Katahira, P.E., Past-President, American Council of Engineeering Companies of Hawaii; Lance M. Inouye, President and Chief Executive Officer, Ralph S. Inouye Co., Ltd.; Douglas B. Lee, P.E., Vice President, Brown and Caldwell; Raymond N. Matasci, P.E., Vice President, Brown and Caldwell; John H. Katahira, President, The Limtiaco Consulting Group; Kenneth Ishizaki, P.E., Executive Vice President, Engineering Concepts, Inc.; Richard M. Moss, P.E., President, Moss Engineering, Inc.; Glen Y. F. Lau, P.E., President, Pacific Geotechnical Engineers, Inc.; Roy K. Yamashiro, P.E., Principal, Consulting Structural Hawaii, Inc.; Joel Yuen, P.E., President, InSynergy Engineering, Inc.; and Richard E. Frey, P.E., Vice President, Kennedy/Jenks Consultants.

     Your Committee received comments in opposition to this measure from the Department of Transportation.

     Your Committee received comments on this measure from Aaron S. Fujioka, Administrator, State Procurement Office.

     Your Committee finds that the two-step design-build procurement process will encourage the selection of the most qualified contactors to design and construct complex public infrastructure.  In addition, your Committee finds that payment of a conceptual design fee to qualified offerors will help offset the costs of preparing a proposal, thus making it possible for smaller local firms to compete with larger national firms for public construction contracts.  

     Your Committee has amended this measure by changing the effective date to July 1, 2117, to encourage further discussion on the measure.

     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 is in accord with the intent and purpose of H.B. No. 985, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 985, H.D. 2, S.D. 2.

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

____________________________

DAVID Y. IGE, Chair