STAND. COM. REP. NO. 1702

Honolulu, Hawaii

RE: H.B. No. 1297

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committees on Ways and Means and Judiciary, to which was referred H.B. No. 1297, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

beg leave to report as follows:

The purpose and intent of this measure is to clarify certain requirements of the Hawaii Public Procurement Code.

More specifically, this measure:

(1) Sets a time limit for submitting bid protests;

(2) Applies the seventy-five-day limit for issuing a written decision on protests to any contract awarded by a competitive sealed bid or competitive sealed proposal; and

(3) Caps the protest bond amount.

Your Committees received written comments in support of this measure from the Department of Transportation, State Procurement Office, and General Contractors Association of Hawaii.

Your Committees received written comments in opposition to this measure from the Subcontractors Association of Hawaii.

Your Committees received written comments on this measure from the Department of Accounting and General Services.

Your Committees find that procurement challenges often lead to project delays, lapsing funds, and increased project costs. Your Committees further find that a bid protest bond serves as a safeguard, providing a financial guarantee to deter frivolous protests and uphold the integrity of the procurement process. Your Committees recognize that this measure will streamline the challenge process, clarify the timeframe for protests of all procurement contracts, and cap the amount of protest bonds, thereby improving efficiency, transparency, and accountability in the procurement process.

As affirmed by the records of votes of the members of your Committees on Ways and Means and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1297, H.D. 1, S.D. 1, and recommend that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committees on Ways and Means and Judiciary,

________________________________ KARL RHOADS, Chair

________________________________ DONOVAN M. DELA CRUZ, Chair