Bill Text: HI HB2674 | 2018 | Regular Session | Introduced
Bill Title: Relating To Procurement.
Spectrum: Partisan Bill (Democrat 16-0)
Status: (Introduced - Dead) 2018-01-29 - Referred to LAB, FIN, referral sheet 9 [HB2674 Detail]
Download: Hawaii-2018-HB2674-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2674 |
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TWENTY-NINTH LEGISLATURE, 2018 |
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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 delivery and award of public works construction projects can be hindered by bid challenges that result in a lapse of funding and other procurement issues. The legislature further finds that the execution and completion of public works construction projects are often delayed when a party who was not the lowest bidder challenges technical mistakes in the lowest bidder's proposal. As a result of these bid protests, projects become delayed, funding lapses, or subsequent awarding of the contract to a party other than the lowest bidder increases final project costs.
More specifically, section 103D-302, Hawaii Revised Statutes, requires a bidder who submits a bid proposal to any state or county agency, pursuant to the procurement code, to list all subcontractors or joint contractors that the bidder will use in the performance of the contract, along with the nature and scope of the work to be performed by each subcontractor or joint contractor. The legislature also finds that many recent bid protests have been based on subcontractor listing and licensing issues, including where a bidder has failed to list a required subcontractor or when a listed subcontractor, unbeknownst to the general contractor, did not possess the appropriate license and was not qualified to perform the work.
The legislature further finds that time constraints between the time a bidder receives all subcontractor bids and the bid submission deadline can cause an inadvertent failure to list a required subcontractor or the listing of an improperly licensed subcontractor in a bid, resulting in a bid protest. Another reason for these errors is the complexity of the laws relating to contractor licenses under chapter 444, Hawaii Revised Statutes; chapter 77 of title 16, Hawaii Administrative Rules; and judicial, quasi-judicial, and agency interpretations of the applicable laws and rules. The contractors license board currently 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. For these reasons, bidders and subcontractors sometimes misunderstand the applicable licensing requirements.
The legislature notes that the federal government, on the other hand, does not require the listing of subcontractors on any bid proposal. In fact, the federal government does not require a general contractor's license to bid on or perform construction work; nor do more than twenty states. The legislature further recognizes that the American Bar Association's 2000 Model Procurement Code for State and Local Governments, upon which Hawaii's procurement code is based, does not include a subcontractor listing requirement.
The purpose of this Act is to require:
(1) The listing of subcontractors or joint contractors for construction contracts only where the total bid value may be $5,000,000 or more; and
(2) The listing of any subcontractors or joint contractors representing only what is known as the "five sacred trades", which include electrical; plumbing; asbestos; elevator; and boiler, hot-water heating, and steam fitting contractors, for construction contracts where the total bid value may be less than $5,000,000.
It is the intent of the legislature that this Act will have the effect of reducing the number of subcontractors or joint contractors that must be listed in a bid proposal, thereby reducing the number of opportunities to challenge bids based on alleged subcontractor listing errors. The legislature does not intend that this Act in any way change the statutory requirement to use licensed subcontractors or joint contractors pursuant to chapter 444, Hawaii Revised Statutes.
SECTION 2. Section 103D-302, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(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[,] where the total bid value
may be $5,000,000 or more, it shall 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. If the invitation for bids
is for construction where the total bid value may be less than $5,000,000, the
invitation shall 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 if the joint contractor or subcontractor is engaged in
electrical; plumbing; asbestos; elevator; or boiler, hot-water heating, or
steam fitting work. Construction
bids that do not comply with this requirement 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."
SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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Report Title:
Procurement; Construction; Bids; Contractors; Subcontractors; Joint Contractors
Description:
Requires that bid proposals for construction contracts list subcontractors and joint contractors where the total bid value may be $5,000,000 or more. Requires the listing of subcontractors and joint contractors where the total bid value may be less than $5,000,000, but only if electrical; plumbing; asbestos; elevator; or boiler, hot-water heating, or steam fitting work is involved.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
