THE SENATE	S.B. NO.	2385
THIRTY-FIRST LEGISLATURE, 2022		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO PROCUREMENT.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that the procurement of professional services under section 103D-304, Hawaii Revised Statutes, currently requires a selection committee to rank a minimum of three persons based on the selection criteria and send the ranking to the head of the purchasing agency to begin negotiations. This requirement was upheld in Asato v. Procurement Policy Board, 322 P.3d 228 (Haw. S. Ct. 1994).

However, the legislature further finds that when an agency seeks to procure professional services and does not receive the requisite minimum of three responses, it must continue to re-solicit, expending additional time and resources to fulfill the solicitation. An alternate procurement approval process would increase efficiency and facilitate the procurement of specialized professional services by allowing procuring agencies to timely procure needed professional services in situations where the agency receives less than three bids or proposals from qualified persons.

Accordingly, the purpose of this Act is to allow agencies to seek alternative procurement approval for the procurement of professional services, in situations where a procuring agency receives less than three bids or proposals from qualified persons in the solicitation of professional services.

SECTION 2. Section 103D-304, Hawaii Revised Statutes, is amended by amending subsection (g) to read as follows:

"(g) The selection committee shall rank a minimum of three persons based on the selection criteria and send the ranking to the head of the purchasing agency[.]; provided that if fewer than three qualified persons submit bids or proposals, the agency may submit a request for alternative procurement approval from the chief procurement officer or designee. The contract file shall contain a copy of the summary of qualifications for the ranking of each of the persons provided to the head of the purchasing agency for contract negotiations. If more than one person holds the same qualifications under this section, the selection committee shall rank the persons in a manner that ensures equal distribution of contracts among the persons holding the same qualifications. The recommendations of the selection committee shall not be overturned without due cause."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

Report Title:

Procurement; Professional Services; Alternative Procurement Approval

Description:

Allows agencies to seek alternative procurement approval for the procurement of professional services when fewer than three qualified persons submit bids or proposals. (SD1)

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