STAND. COM. REP. NO. 1141-22

Honolulu, Hawaii

, 2022

RE: S.B. No. 2385

S.D. 2

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Government Reform, to which was referred S.B. No. 2385, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

The purpose of this measure is to authorize agencies procuring professional services to request an exemption from the Hawaii Public Procurement Code if fewer than three qualified persons submit statements of qualifications.

Your Committee received testimony in support of this measure from the Department of Transportation, State Procurement Office, Department of Finance of the County of Kaua‘i, and Department of Budget and Fiscal Services of the City and County of Honolulu. Your Committee received testimony in opposition to this measure from the American Institute of Architects Hawaii State Council. Your Committee received comments on this measure from the American Council of Engineering Companies of Hawaii and one individual.

Your Committee finds that existing law does not allow for an alternative if less than three qualified persons respond to a professional services notice. As a result, professional service procurements may be delayed indefinitely until the minimum number of qualified submissions is obtained. This measure provides state agencies with more timely alternatives to complete procurement of professional services when there are fewer than three qualified submissions.

Your Committee has amended this measure by:

(1) Deleting language that would authorize agencies procuring professional services to request an exemption from the Hawaii Public Procurement Code if fewer than three qualified persons submit statements of qualifications;

(2) Inserting language that authorizes an agency to seek approval for the alternative procurement of professional services if fewer than three qualified persons respond to an agency's solicitation; and

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

Your Committee accordingly has amended this measure in a manner that will address policy goals without eliminating the competitive bidding process completely should there be less than three qualified professional servicers applying.

As affirmed by the record of votes of the members of your Committee on Government Reform that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2385, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2385, S.D. 2, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

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

____________________________

ANGUS L.K. McKELVEY, Chair