STAND. COM. REP. NO. 2577

Honolulu, Hawaii

RE: S.B. No. 3143

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Government Operations, to which was referred S.B. No. 3143 entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

The purpose and intent of this measure is to provide resources for the training and development of innovative project and general construction procurement methods and delivery systems within the Public Works Division of the Department of Accounting by:

(1) Requiring the State Procurement Office and the Public Works Division of the Department of Accounting and General Services to create a ten-year pilot program to enable innovative construction procurement within the Public Works Division;

(2) Creating the exempt position of innovative project delivery coordinator within the State Procurement Office;

(3) Requiring the State Procurement Office and the Public Works Division of the Department of Accounting and General Services to submit a biennial report of its findings and recommendations, including any proposed legislation to the Legislature no later than twenty days prior to the convening of each regular session, beginning in 2022; and

(4) Making an appropriation of $85,000 for the fiscal year 2020-2021.

Your Committee received testimony in support of this measure from the Department of Accounting and General Services, State Procurement Office, and Office of Planning, State of Hawaii.

Your Committee finds that to achieve best value through innovation in construction procurement and better management of procurement policy, that training and guidance is necessary. Your Committee further finds that the ten-year pilot program and exempt position created would promote procurement efficiency, program success, and government accountability.

Your Committee has amended this measure by:

(1) Changing the title of the exempt position from the "Innovation Project Delivery Coordinator" to the "Innovation Project Delivery Officer";

(2) Authorizing the State Procurement Office to establish and fill the Innovation Project Delivery Officer position within the Public Works Division;

(3) Providing an appropriation of $85,000 for each fiscal year until the end of the ten-year pilot program; and

(4) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3143, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3143, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Government Operations,

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LAURA H. THIELEN, Chair