STAND. COM. REP. NO. 610

Honolulu, Hawaii

RE: S.B. No. 1441

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Government Operations, to which was referred S.B. No. 1441 entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC PROCUREMENT,"

begs leave to report as follows:

The purpose and intent of this measure is to clarify the deadline for submitting written protests that are based on the content of a solicitation.

Your Committee received testimony in opposition to this measure from the General Contractors Association of Hawaii. Your Committee received comments on this measure from the Department of Accounting and General Services, State Procurement Office, and Department of Transportation.

Your Committee finds that unsatisfied, or aggrieved, venders routinely challenge officials' procurement decisions through bid protests. A bid protest is a challenge to the terms or award of a public contract. Many public procurement systems have established procedures for allowing venders to challenge a solicitation. To be considered timely, the protest must be submitted in writing within the prescribed time to allow for efficient resolution.

Your Committee has heard the testimony expressing concerns that this bill may not be necessary as there are provisions in existing law for bidder protest, and that the language in this measure may pose a disadvantage to the bidders as it may further limit the time provided to protest the solicitation. However, your Committee feels that an imposed time limit could help to expedite project completion by limiting the protest time to a defined period.

Your Committee has amended this measure by:

(1) Clarifying language to reflect the fact that there are only two opportunities to protest; and

(2) Inserting an effective date of July 1, 2112, to encourage further discussion.

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. 1441, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1441, S.D. 1, and be referred to your Committee on Judiciary.

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

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ANGUS L.K. MCKELVEY, Chair