Bill Text: HI HB1228 | 2017 | Regular Session | Introduced
Bill Title: Relating To Procurement.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced - Dead) 2017-02-02 - The committee(s) on LAB recommend(s) that the measure be deferred. [HB1228 Detail]
Download: Hawaii-2017-HB1228-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1228 |
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TWENTY-NINTH LEGISLATURE, 2017 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to procurement.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the Hawaii Public Procurement Code requires bid proposals to include the name and scope of work of subcontractors and joint contractors that will be used on a public works project. Time constraints between the time a bidder receives all subcontractor bids and the bid submission deadline, as well as the complexity of licensing requirements, can cause inadvertent failure by a bidder to list a required subcontractor or cause a bidder to list an improperly licensed subcontractor in a bid. Oftentimes these technical mistakes in a lowest bidder's proposal results in a bid challenge, thus delaying the execution and delivery of public works projects. Many recent bid challenges have been based on the failure to list a required subcontractor or licensing scope of work issues. As a result of bid challenges, projects are delayed, funding lapses, and inflation increases final project costs.
The legislature further finds that the contractors license board recognizes over one hundred different specialty contractor licenses that a prime bidder must sort through to determine the appropriate subcontractor specialty to be listed on a bid. The legislature additionally finds that in comparison, the federal government does not require the listing of subcontractors on any bid proposal and the 2000 American Bar Association's Model Procurement Code, the model for the Hawaii Public Procurement Code, does not include a subcontractor listing requirement. Twenty states and the federal government do not even require a general contractor's license to bid on or perform construction work. While subcontractor listing proponents cite legislative intent and the deterrent of bid shopping and bid peddling in support of the listing requirement, it is evident from the number of awards to non-low bidders and increased costs of construction due to the subcontractor listing discrepancies that the listing requirement can result in consequences that the legislature did not intend. Providing prime contractors with additional time to submit a subcontractor list would facilitate the legislature's intent of ensuring that subcontractors are listed properly on the bid submittal and are licensed and qualified in the scope and nature of the work to be performed.
The purpose of this Act is to minimize bid challenges, costs, and delays of public works construction projects, by providing a bidder of a public works construction project with:
(1) Two working days after the closing of a bid to provide the name of each person or firm to be engaged by the bidder as a joint contractor or subcontractor in the performance of the contract and the nature and scope of the work to be performed by each; and
(2) The opportunity to substitute subcontractors in certain instances, provided that the price of the total bid remains the same.
SECTION 2. Section 103D-302, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (b) to read:
"(b) An invitation for bids shall be
issued, and shall include a purchase description and all contractual terms and
conditions applicable to the procurement. If the invitation for bids is for
construction, it shall [specify]:
(1) Specify
that all bids include the name of each person or firm to be engaged by the
bidder as a joint contractor or subcontractor in the performance of the contract
and the nature and scope of the work to be performed by each[.]; and
(2) Allow the bidder:
(A) Two working days after the closing of the invitation for bids to provide the information required by paragraph (1); and
(B) The opportunity to substitute a subcontractor that is not in compliance with the requirements of paragraph (1) with another subcontractor that is in compliance with the requirements of paragraph (1) within two days after the closing of the invitation for bids, provided that the price of the total bid remains the same.
Construction bids that do not comply with [this
requirement] these requirements may be accepted if acceptance is in
the best interest of the State and the value of the work to be performed by the
joint contractor or subcontractor is equal to or less than one per cent of the
total bid amount."
2. By amending subsection (d) to read:
"(d) Bids shall be opened publicly in the
presence of one or more witnesses, at the time and place designated in the
invitation for bids[.]; provided that if the bid is for construction,
it shall be opened no sooner than two working days after the closing of the
invitation for bids. The amount of each bid and other relevant information
specified by rule, together with the name of each bidder shall be recorded.
The record and each bid shall be open to public inspection."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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Report Title:
Procurement; Competitive Sealed Bidding; Subcontractor; Public Works Construction Project
Description:
Provides a bidder of a public works construction project with two working days after the closing of bids to provide the name of each joint contractor or subcontractor and the nature and scope of the work to be performed by each. Allows the bidder to replace a subcontractor that is not in compliance with these requirements, provided that the price of the total bid remains the same.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
