STAND. COM. REP. NO. 2179

Honolulu, Hawaii

RE: S.B. No. 2387

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. 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 amend section 103D, Hawaii Revised Statutes, by requiring procuring agencies to publicly post, for a minimum period of ten days, the bases for cancelling an invitation for bid or request for proposal.

Your Committee received testimony in support of this measure from the State Procurement Office and the Associated Builders and Contractors—Hawaii Chapter.

Your Committee finds that transparency is one of the primary goals of the Hawaii State Procurement Code. Existing law contains certain transparency measures in the solicitation and award process but does not provide transparency regarding the cancellation of solicitations. Your Committee further finds that one of the requirements of ethical public procurement pursuant to section 103D-101, Hawaii Revised Statutes, includes ensuring that all persons are afforded an equal opportunity to compete in a fair and open environment. Your Committee finds that the transparency necessary for an open environment should apply in all stages of the procurement process, including when a solicitation is cancelled.

Your Committee additionally finds that the preparation and submission of bids and proposals can consume considerable resources and vendors should therefore have the right to know the bases for the cancellation of a solicitation. Your Committee also finds that the public has a right to know the specific reason why a solicitation was cancelled, which, currently, is noted in the project's contract file but is not publicly posted. And your Committee notes that, according to the State Procurement Office, posting the reason or reasons for a cancelled solicitation as proposed by this measure will promote consistency, transparency, and efficiency in government.

Accordingly, your Committee finds that this measure will increase transparency in the procurement process and promote equitable procurement practices.

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. 2387 and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

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

________________________________

SHARON MORIWAKI, Chair