STAND. COM. REP. NO. 2773

Honolulu, Hawaii

RE: S.B. No. 2387

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 Ways and Means, to which was referred S.B. No. 2387 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 transparency in state procurement.

Specifically, this measure requires departments to publicly post, on an electronic notification system for a minimum of ten days, the justification for cancelling an invitation for bids or request for proposals.

Your Committee received written comments in support of this measure from the Department of Budget and Fiscal Services of the City and County of Honolulu.

Your Committee received written comments on this measure from the State Procurement Office.

Your Committee finds that offerors devote considerable time and resources to prepare and submit bids and proposals for public contracts. Accordingly, your Committee finds that potential vendors have the right to know the reason that a purchasing agency has cancelled a contract solicitation.

Your Committee has amended this measure by:

(1) Clarifying that the reasons for the cancellation shall be posted on a purchasing agency or provider internet site or by any other method the procurement officer deems effective for publicizing the cancellation notice;

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

(3) Making technical nonsubstantive amendments 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. 2387, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2387, S.D. 1.

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

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DONOVAN M. DELA CRUZ, Chair