Bill Text: HI HB2128 | 2010 | Regular Session | Introduced

Hawaii House Bill 2128 (Prior Session Legislation)

Introduced

Bill Title: Hawaii Public Procurement Code

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Introduced - Dead) 2010-01-22 - (H) Referred to HLT/HUS, EBM, FIN, referral sheet 3 [HB2128 Detail]

Download: Hawaii-2010-HB2128-Introduced.html

HOUSE OF REPRESENTATIVES	H.B. NO.	2128
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII

A BILL FOR AN ACT

relating to public procurement.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The purpose of this Act is to provide temporary exemptions from statutes relating to procurement and rulemaking to allow the State to expedite the implementation or expansion of programs, services, and benefits. It is not the intent of the legislature to provide permanent exemptions to the relevant statutes.

SECTION 2. To the extent not covered by any exemptions adopted by the procurement policy board or the respective chief procurement officers, and any law to the contrary notwithstanding, governmental bodies and state agencies contracting for goods, services, construction, or health and human services may do so exempt from chapter 103D and chapter 103F, Hawaii Revised Statutes, and sections 103-8.5 and 103-53(a), Hawaii Revised Statutes, and subject to the requirements of section 3.

The chief procurement officer of each respective entity shall adopt and implement procedural requirements to carry out the purposes this Act.

SECTION 3. (a) Procurements for goods, services, construction, or health and human services, in amounts greater than $25,000, shall be made through an electronic procurement system to obtain price quotations based on specifications; and registered vendors, contractors, and service providers that supply the goods, services, construction, or health and human services shall be solicited and considered to meet the minimum requirements. For purposes of this Act, "electronic procurement system" means a system that incorporates, at minimum, electronic notification to registered vendors, contractors, and service providers; electronic receipt of responses; and electronic notification of awards.

(b) An award shall be made to the lowest responsive and responsible offeror, using a fixed-price contract. For purposes of this Act, "fixed-price contract" means a contract providing for a firm price, or a price that may be adjusted only in accordance with contract clauses providing for revision of the contract price under stated circumstances.

(c) Prior to the issuance of the solicitation, the chief procurement officer, or the chief procurement officer's designee, shall determine in writing whether an award to the lowest responsive and responsible offeror is not practicable or not advantageous to the State.

(d) When an award to the lowest responsive and responsible offeror is not practicable, an award shall be made to the offeror whose offer provides the best value to the State. For purposes of this Act, "best value" is defined as the most advantageous offer determined by evaluating and comparing all relevant evaluation criteria, in addition to price, so that the offer meeting the overall combination that best serves the State and is rated the highest, shall be selected. The quantitative criteria may include, but shall not be limited to, the total cost of ownership, performance history of the vendor, contractor, and service provider, quality of goods, services, construction, or health and human services, delivery, and proposed technical performance.

(e) If only one responsive and responsible offeror submits an acceptable offer, award may be made to the single offeror, provided the chief procurement officer, or the chief procurement officer's designee, determines in writing that the price submitted is fair and reasonable. If no offers are received, direct negotiations may be conducted, provided the chief procurement officer, or the chief procurement officer's designee, determines in writing, the need for the goods, services, construction, or health and human services.

(f) The chief procurement officer, or the chief procurement officer's designee, shall designate an evaluation committee consisting of a minimum of three governmental employees with sufficient and relevant qualifications related to the procurement. In designating the members of the evaluation committee, the chief procurement officer or designee shall ensure the impartiality and independence of committee members.

The chief procurement officer, or the chief procurement officer's designee, shall award the contract or contracts based upon the information provided by the evaluation committee. Written determination for the selection shall be placed in the procurement file.

(g) Construction contracts shall include security for bid, payment, and performance bonds when the estimated contract amount is $50,000 or more, and conforms to the requirements of sections 103D-323 and 103D-324, Hawaii Revised Statutes.

(h) Except for awards of health and human services contracts, a person aggrieved by an award of a contract pursuant to this Act may protest a purchasing agency's failure to follow procedures established by this Act. The protest shall be submitted to the head of the purchasing agency, in writing, within five working days after notice of the award. The head of the purchasing agency, or a designee, may settle and resolve a protest by one or more of the following means:

(1) Amending or canceling a request for interest;

(2) Terminating the contract that was awarded;

(3) Declaring the contract void from the time of its award; or

(4) Affirming the purchasing agency's contract award decision.

In lieu of paragraphs (1) to (4), a protest may be resolved by mutual agreement; provided that if the protest is not resolved by mutual agreement, the head of the purchasing agency, or a designee, shall issue a decision in writing within ten working days of receipt of the protest. The decision shall state the reasons for the action taken. A copy of the written decision shall be mailed or otherwise furnished to the person who initiated the protest, the person awarded the contract, and to all other offerors not awarded the contract.

(i) For awards of health and human services contracts, the decision of the head of the purchasing agency shall be final and conclusive unless a person who is aggrieved by an award of a contract submits a request for reconsideration to the chief procurement officer within five working days of the receipt of the written decision. The request shall contain a specific statement of the factual and legal grounds upon which reconsideration is sought. A request for reconsideration may only be made to correct a purchasing agency's failure to comply with the procedures of this Act and any applicable rules adopted to implement this Act. The chief procurement officer may uphold or overturn the previous decision of the head of the purchasing agency. A decision by the chief procurement officer shall be rendered within ten working days from receipt of the request for reconsideration and shall be deemed final and conclusive.

(j) The procedures and remedies provided for in subsections (h) and (i) shall be the exclusive means available to resolve the concerns of persons aggrieved in connection with the award of a contract under this Act. The fact that a protest or a request for reconsideration is filed shall not stay the award of any contract made under this Act, unless so ordered by the chief procurement officer.

(k) All offerors, upon award of contract, shall comply with all laws governing entities doing business in the State, including chapters 237, 383, 386, 392, and 393, Hawaii Revised Statutes. To demonstrate compliance, offerors shall be registered on the Hawaii compliance express. The procurement officer shall verify compliance for all contracts awarded. Any offeror making a false affirmation or certification under this subsection shall be suspended from further offerings or awards.

(l) Upon award, award information shall be posted on each respective governmental jurisdiction's website, except information determined to be confidential under chapter 92F, Hawaii Revised Statutes.

(m) The chief procurement officers may be more restrictive in their jurisdiction procedures, and impose any other requirement, as applicable, to ensure compliance with this Act.

(n) Nothing in this Act, any rules adopted thereunder, or any other authority shall be construed to exempt a bidder, offeror, contractor, or provider, as applicable, from any action that would otherwise be a cause for debarment or suspension under section 103D-702, Hawaii Revised Statutes, if the contract or procurement, but for this Act, would be subject to section 103-8.5 or 103-53(a), or chapter 103D or 103F, Hawaii Revised Statutes.

This subsection shall not be interpreted to absolve any person from applicable criminal penalties.

SECTION 4. The state procurement office shall adopt rules to implement the procurement procedures applicable to this Act. Any such rules may be issued as interim rules by adoption and filing with the lieutenant governor and by posting the interim rules on the lieutenant governor's website. Interim rules adopted pursuant to this Act shall be exempt from the requirements of chapter 91, Hawaii Revised Statutes, and shall take effect upon filing with the lieutenant governor. All interim rules adopted pursuant to this section shall be effective only through December 31, 2013, and shall apply only to procurement procedures begun after the effective date of this Act and before June 30, 2013. For any new or expanded programs, services, or benefits that have been implemented under interim rules to continue in effect beyond December 31, 2013, the responsible agency shall adopt rules in conformance with all the requirements of chapter 91, Hawaii Revised Statutes.

SECTION 5. This Act shall take effect on July 1, 2010, and shall be repealed on June 30, 2013.

INTRODUCED BY:	_____________________________

Report Title:

Hawaii Public Procurement Code

Description:

Exempts contracts for purchase of goods, services, construction, or health and human services from chapters 103D and 103F, Hawaii Revised Statutes for 36 months.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.