STAND. COM. REP. NO. 2175

Honolulu, Hawaii

RE: S.B. No. 2385

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

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

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

The purpose and intent of this measure is to amend section 103D-304, Hawaii Revised Statutes, to allow state purchasing agencies to seek alternative procurement approval in the procurement of professional services, limited to situations where fewer than three qualified persons submit bids or proposals.

Your Committee received testimony in support of this measure from the State Procurement Office, Department of Accounting and General Services, and the University of Hawai‘i System. Your Committee received testimony in opposition to this measure from the American Council of Engineering Companies of Hawaii; American Institute of Architects, Hawaii State Council; Hart Crowser, a Division of Haley & Aldrich; Coffman Engineers, Inc.; Okahara and Associates, Inc.; CONSOR Engineers, LLC; and two individuals. Your Committee received comments on this measure from the Department of Transportation.

Your Committee finds that existing law requires a minimum of three bids or proposals from qualified persons to proceed with the procurement of professional services. Your Committee further finds that under certain circumstances, particularly in the procurement of specialized services, this requirement cannot be met. Continually reinitiating the solicitation with the same result increases delays and project costs for procuring agencies.

Your Committee finds that this measure will allow agencies to keep design projects on schedule, improve project schedule efficiency, and ensure priorities and needs are addressed timely. As such, this measure will facilitate the procurement of specialized professional services in situations where fewer than three qualified persons submit bids or proposals.

Your Committee has amended this measure by:

(1) Clarifying that the alternate approval option proposed by this measure only applies in situations where fewer than three qualified persons submit bids or proposals in response to a procuring agency seeking professional services;

(2) Amending section 1 to reflect its amended purpose; and

(3) 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. 2385, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2385, 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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SHARON MORIWAKI, Chair