SR58 SD1.DOC

WHEREAS, chapter 103D, Hawaii Revised Statutes, governs the procurement of goods, services, or construction by state and county agencies; and

WHEREAS, pursuant to chapters 103D and 103F, Hawaii Revised Statutes, the mission of the State Procurement Office is to promote economy, efficiency, effectiveness, and impartiality in procurement for state and county governments through development, implementation, and maintenance of policies and procedures that provide for broad-based competition, accessibility to government contracts, fiscal integrity, and responsibility in the procurement process, and to promote efficiency, effectiveness, and stewardship in inventory management and surplus property management in an open, fair, and transparent process; and

WHEREAS, the State Procurement Office adopts rules to implement the procurement law for all state and county agencies; provides coordination, review, analysis, implementation, and oversight services for various procurement projects; and provides training to ensure compliance with procurement laws; and

WHEREAS, chapter 103D, Hawaii Revised Statutes, was based on the framework provided by the American Bar Association's Model Procurement Code for State and Local Governments and was enacted to increase competition, ensure fairness, and establish greater uniformity in the public procurement of goods and services; and

WHEREAS, the state procurement code has been amended more than forty times since its enactment in 1993, and the numerous statutory changes have resulted in increased complexity in the procurement process; and

WHEREAS, in an effort to promote economy, efficiency, effectiveness, and impartiality in public procurement, it is important to identify factors that may cause delays in the procurement process, including unnecessary bid preferences, bid protests, and increased contract prices for public works construction projects; and

WHEREAS, the State currently recognizes various specialty contractor licenses that a bidder must review to determine whether a particular subcontractor specialty must be listed on a bid; and

WHEREAS, many recent bid protests have arisen due to a variety of issues, resulting in major delays and cost increases on public works construction projects; and

WHEREAS, Act 173, Session Laws of Hawaii 2012, requires the State Procurement Office to maintain statistics on solicitations and awards protested under section 103D-701, Hawaii Revised Statutes, for the purpose of improving procurement procedures; and

WHEREAS, it is important to continue to gather past bid protest data and study bid protest outcomes to further determine if costs have increased solely due to bid protests in public works construction projects; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-seventh Legislature of the State of Hawaii, Regular Session of 2013, that the Comptroller is requested to establish a task force to study the cost impacts that the procurement process has had for public works construction projects as well as the existing bid preferences in relation to promoting economy, efficiency, effectiveness, and impartiality in procurement for state and county governments; and

BE IT FURTHER RESOLVED that the Comptroller, or the Comptroller's designee, is requested to serve as chair of the task force; and

BE IT FURTHER RESOLVED that the Comptroller is requested to solicit representatives from the following entities to serve on the task force, provided that those persons designated shall be knowledgeable of procurement procedures and issues within their respective organizations:

(1) The State Procurement Office;

(2) The University of Hawaii;

(3) The Department of Education;

(4) The Office of Hawaiian Affairs;

(5) The Department of Transportation;

(6) A county procurement department;

(7) A county board or department of water supply;

(8) The semi-autonomous public transit agency of the City and County of Honolulu;

(9) The Subcontractors Association of Hawaii;

(10) The General Contractors Association of Hawaii;

(11) The Hawaii Building and Construction Trades Council, AFL-CIO; and

(12) The Hawaii Construction Alliance; and

BE IT FURTHER RESOLVED that the task force is requested to:

(1) Identify and propose amendments, if any, to the state procurement code that may better promote economy, efficiency, effectiveness, and impartiality in the procurement of public works construction projects, including but not limited to a review of all bid preferences on public works projects; and

(2) Solicit input from the construction industry and determine whether administrative rules governing contractors reflect the intent of the Legislature and chapter 103D, Hawaii Revised Statutes; and

BE IT FURTHER RESOLVED that members of the task force are requested to serve without compensation; and

BE IT FURTHER RESOLVED that the task force is requested to submit its findings and recommendations, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2015; and

BE IT FURTHER RESOLVED that the Legislative Reference Bureau is requested to assist the task force in drafting proposed legislation; provided that the task force submits its request for proposed legislation, if any, to the Legislative Reference Bureau no later than November 1, 2014; and

BE IT FURTHER RESOLVED that the task force shall be dissolved on June 30, 2015; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Governor; President of the Senate; Speaker of the House of Representatives; Attorney General; Comptroller; Chief Procurement Officer; Director of Transportation; Superintendent of Education; Administrator of the Office of Hawaiian Affairs; President of the University of Hawaii System; Acting Director of the Legislative Reference Bureau; the Mayor of each county; the board or department of water supply of each county; Executive Director of the Subcontractors Association of Hawaii; Executive Director of the General Contractors Association of Hawaii, Executive Director of the Hawaii Building and Construction Trades Council, AFL-CIO; and Executive Director of the Hawaii Construction Alliance.

Report Title:

State Procurement Code; Identify Amendments

THE SENATE	S.R. NO.	58
TWENTY-SEVENTH LEGISLATURE, 2013		S.D. 1
STATE OF HAWAII