HOUSE OF REPRESENTATIVES	H.B. NO.	2441
TWENTY-FIFTH LEGISLATURE, 2010		H.D. 2
STATE OF HAWAII		S.D. 2
		C.D. 1

A BILL FOR AN ACT

 

 

RELATING TO PROCUREMENT.

 

 

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

 

PART I

     SECTION 1.  The legislature finds that in this period of high economic turmoil, procedural changes are necessary to enable the State to achieve a quick recovery and to provide effective economic stimulation.  The legislature further finds that Hawaii's public procurement process is inefficient and antiquated.  Procedures require protracted periods of time between each procurement step.  Currently, the awarding of a contract is subject to prolonged review, thereby preventing government projects from proceeding in a timely manner.

     Senate Concurrent Resolution No. 132, S.D. 1, regular session of 2009, established a task force to determine the economic contributions of the construction industry in Hawaii.  As directed in the concurrent resolution, the task force has developed a series of proposals for state actions to preserve and create new jobs in the local construction industry.  This part implements one of the task force's proposals.

     Accordingly, the purpose of this part is to amend chapter 103D, Hawaii Revised Statutes, to require certain state and county agencies to award public contracts on bid proposals within thirty days of the bid opening date.  In doing so, however, it is also the purpose of this part to strike a balance between expedited procedures and necessary accountability and transparency.

     SECTION 2.  Chapter 103D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§103D-    Contract award deadlines.  Notwithstanding any other statute or administrative rule relating to procurement, contracts for projects of the department of Hawaiian home lands and department of transportation that are awarded after bidding shall be awarded within thirty days of the bid opening date; provided that:

     (1)  An extension, not exceeding 14 business days, shall be permitted if it will provide the opportunity for further negotiations with the lowest responsible bidder relating to considerations that could result in benefits to the public;

     (2)  Contracts for design professional services furnished by persons licensed under chapter 464 shall be awarded within forty-five days of the bid opening date;

     (3)  The award deadline shall not apply if the lowest responsible bid exceeds available funding; and

(4)  The award deadline shall not apply to design-build contracts.

     For the purposes of this subsection "design-build" means the combining of design and construction into a single request for proposal."

PART II

     SECTION 3.  Chapter 103D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§103D‑    Gifts to the State not procurement contracts.  A gift to the State shall not be deemed to constitute a procurement contract and shall not require a procurement contract to be accepted by the State as a gift; provided that the agency accepting a gift shall promptly report the gift to the state procurement office.

     For purposes of this section, "gift" refers to donations of material, labor, equipment, or other appropriate subjects of donation."

PART III

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2010, and shall be repealed on June 30, 2012.

Report Title:

Procurement; 30-Day Contract Award Deadline; Gifts to the State

 

Description:

Requires contracts for DHHL and DOT projects to be awarded within 30 days of the bid opening date, subject to sufficient available funding and an extension for further negotiations to benefit the public.  Requires DHHL and DOT contracts for design professional services to be awarded within 45 days of the bid opening date.  Specifies that gifts made to the State shall not constitute or require a procurement contract.  Sunsets on

July 1, 2012.  (HB2441 CD1)

 

 

 

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