STAND. COM. REP. NO. 3491

Honolulu, Hawaii

RE:    H.C.R. No. 176

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.C.R. No. 176 entitled:

"HOUSE CONCURRENT RESOLUTION REQUESTING THE STATE PROCUREMENT OFFICE TO CONDUCT A STUDY ON THE FEASIBILITY, NECESSARY PROCESSES, AND COSTS RELATIVE TO REQUIRING THE CONSIDERATION OF PAST PERFORMANCE AS A FACTOR IN AWARDING PUBLIC CONTRACTS, INCLUDING LOW BID CONTRACTS,"

begs leave to report as follows:

     The purpose and intent of this measure is to request the State Procurement Office to conduct a study on the feasibility, necessary processes, and costs of requiring the consideration of past performance as a factor in awarding public contracts.

     This measure also requests the State Procurement Office to submit its findings and recommendations to the Legislature no later than twenty days prior to the convening of the Regular Session of 2015.

     Your Committee received written comments on this measure from the General Contractors Association of Hawaii and the Building Industry Association.

     Your Committee finds that for awards of public contracts, a contractor's past performance is only considered during the evaluation of proposals and not during other times of the award process.  Your Committee further finds that a study regarding the proper consideration to be given to a contractor's past performance would facilitate an exploration of methods for the State to avoid awarding contracts to poor-performing contractors.

     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 H.C.R. No. 176, and recommends its adoption.

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

____________________________

DAVID Y. IGE, Chair