STAND. COM. REP. NO. 319

Honolulu, Hawaii

RE: S.B. No. 1175

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Government Operations, to which was referred S.B. No. 1175 entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

The purpose and intent of this measure is to add a state contractor's performance assessment to the information required to be included in the Past Performance Database maintained by the State Procurement Office.

Your Committee received testimony in support of this measure from the State Procurement Office and Department of Transportation.

Your Committee received testimony in opposition to this measure from the General Contractors Association of Hawaii.

Your Committee finds that Act 188, Session Laws of Hawaii 2021, required the State Procurement Office to develop a Past Performance Database to increase accountability, enhance performance, and utilize taxpayer dollars more efficiently. The database tracks the past performance of contractors, providing the State with additional information to make an informed decision when identifying the lowest "responsible bidder", thereby saving taxpayer money while ensuring positive project outcomes. This measure adds an additional datapoint, past performance assessments, to the information required to be collated in the database. This additional information will offer valuable insight into the responsibility, capability, and quality of a contractor and their work.

Your Committee has amended this measure by:

(1) Inserting blank appropriation amounts for:

(A) Fiscal year 2025-2026 for all anticipated activities, including revising the Past Performance Database, for the purposes of this measure; and

(B) Fiscal years 2025-2026 and 2026-2027, for the annual maintenance of the Past Performance Database; and

(2) Inserting an effective date of January 1, 2491, to encourage further discussion.

Your Committee notes that this measure, as amended, contains unspecified appropriation amounts. Should your Committee on Ways and Means choose to deliberate on this measure, your Committee respectfully requests that it consider inserting the following appropriation amounts:

(1) $30,000 for fiscal year 2025-2026 for all anticipated activities, including revising the Past Performance Database, for the purposes of this measure; and

(2) $13,500 for fiscal years 2025-2026 and 2026-2027, for the annual maintenance of the Past Performance Database.

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. 1175, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1175, S.D. 1, and be referred to your Committee on Ways and Means.

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

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ANGUS L.K. MCKELVEY, Chair