STAND. COM. REP. NO. 3393

Honolulu, Hawaii

RE:    S.C.R. No. 40

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.C.R. No. 40, S.D. 1, entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING THE RENAMING OF AND THE EXTENSION OF THE PROMPT PAYMENT TASK FORCE TO DEVELOP RECOMMENDATIONS TO ADDRESS ISSUES THAT AFFECT PROCUREMENT FOR GOODS AND SERVICES PURCHASED THROUGH NONPROFIT ORGANIZATIONS, INCLUDING HUMAN SERVICE NONPROFIT ORGANIZATIONS THAT DELIVER PIVOTAL GOODS AND SERVICES TO INDIVIDUALS, FAMILIES, COMMUNITIES, AND OTHER SMALL BUSINESSES,"

begs leave to report as follows:

     The purpose and intent of this measure is to address problems that have arisen in the process of government procurement of goods and services from nonprofit organizations in Hawaii.

     Written comments in support of this measure were submitted by Goodwill Industries of Hawaii, Inc., and Hawaii Alliance of Nonprofit Organizations.

     Written comments on this measure were submitted by the State Procurement Office.

     Your Committee finds that the Prompt Payment Task Force has identified multiple areas in the process of procuring goods and services from nonprofit organizations that are in need of improvement, particularly with regard to human services organizations.  Accordingly, your Committee believes that the task force should continue its analysis, with particular emphasis on:

     (1)  Examining procurement issues from the initial contracting phases through service delivery, with particular focus on invoicing and payment issues;

     (2)  Identifying processes among contracting parties and the State Procurement Office that may be simplified or standardized; and

     (3)  Developing the scope of a pilot project to demonstrate the effective use of a performance management tool, such as a dashboard, as a means of improving business processes and streamlining the procurement process.

     Your Committee finds that changing the focus of the task force and extending it to December 31, 2012, will enable it to offer further recommendations on how to improve the process by which the government procures goods and services from nonprofit organizations in the State.

     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 concurs with the intent and purpose of S.C.R. No. 40, S.D. 1, and recommends its adoption.

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

____________________________

DAVID Y. IGE, Chair