STAND. COM. REP. NO. 2931

Honolulu, Hawaii

RE: S.B. No. 2385

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2385, 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 reduce delays and costs in the procurement of professional services.

Specifically, this measure authorizes agencies to seek approval for the alternative procurement of professional services in situations where a procuring agency receives fewer than three bids or proposals from qualified persons.

Your Committee received written comments in support of this measure from the Department of Accounting and General Services, University of Hawaii, Department of Finance of the County of Kauai, and Department of Budget and Fiscal Services of the City and County of Honolulu.

Your Committee received written comments in opposition to this measure from the American Council of Engineering Companies of Hawaii, CONSOR Engineers, Yogi Kwong Engineers, Hart Crowser, AIA Hawaii State Council, and two individuals.

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

Your Committee 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 interested persons based on the selection criteria, and to send the rankings to the head of the purchasing agency to begin negotiations. Your Committee further finds that when an agency seeking to procure professional services does not receive at least three responses to its contract solicitation, the agency must continue to solicit offers, which delays projects and increases costs for the State.

Your Committee has amended this measure by:

(1) Deleting language that would authorize agencies to seek approval for the alternative procurement of professional services when the agency receives fewer than three bids or proposals from qualified persons;

(2) Inserting language that authorizes agencies procuring professional services to request an exemption from chapter 103D, Hawaii Revised Statutes, pursuant to section 103D-102(b)(4)(L), Hawaii Revised Statutes, if fewer than three qualified persons submit statements of qualifications;

(3) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

(4) Making technical nonsubstantive changes for purposes of clarity, consistency, and style.

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 S.B. No. 2385, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2385, S.D. 2.

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

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DONOVAN M. DELA CRUZ, Chair