STAND. COM. REP. NO. 1679

Honolulu, Hawaii

RE: H.B. No. 526

H.D. 1

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 526, H.D. 1, 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 increase efficiency and cost-effectiveness in public procurement.

More specifically, this measure:

(1) Defines "past performance" with regard to contractors;

(2) Requires procurement officers to consider specific factors, including past performance, when available;

(3) Requires the State Procurement Office to establish and administer a past performance database; and

(4) Appropriates moneys for the development, implementation, and training of certain procurement resources tools, including a past performance guide and past performance database.

Your Committee received written comments in support of this measure from the Department of Transportation.

Your Committee received written comments in opposition to this measure from the General Contractors Association of Hawaii.

Your Committee received written comments on this measure from the Department of Accounting and General Services and State Procurement Office.

Your Committee finds that, in the procurement process, considering a contractor's past performance and creating and maintaining a past performance database will help to address issues of repeated inefficiencies and substandard work.

Your Committee has amended this measure by changing the effective date to July 1, 2050, to facilitate 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. 526, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 526, H.D. 1, S.D. 2.

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

________________________________

DONOVAN M. DELA CRUZ, Chair