Bill Text: HI HCR177 | 2014 | Regular Session | Introduced

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Bill Title: Requests the State Procurement Office to conduct a study on the number of debarments and suspensions of State contractors that occurred over the past ten years and the number of verified guilty felony criminal convictions that resulted in debarment or suspension of a contractor over the past three years.

Spectrum: Partisan Bill (Democrat 10-0)

Status: (Introduced - Dead) 2014-03-18 - The committee(s) on EDB recommend(s) that the measure be deferred. [HCR177 Detail]

Download: Hawaii-2014-HCR177-Introduced.html

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HOUSE OF REPRESENTATIVES	H.C.R. NO.	177
TWENTY-SEVENTH LEGISLATURE, 2014
STATE OF HAWAII

HOUSE CONCURRENT

RESOLUTION

 

 

Requesting the state procurement office to conduct a study on debarments and suspensions of state contractors.

 

 

 

     WHEREAS, government contracting is the process by which public bodies and agencies obtain needed goods, services, or construction to enable government operations to conduct and achieve their missions; and

 

     WHEREAS, the Hawaii Public Procurement Code, codified in the Hawaii Revised Statutes as Chapter 103D, and the provision of Purchases of Health and Human Services, codified in the Hawaii Revised Statutes as Chapter 103F, were established to promote economy, efficiency, and effectiveness in the procurement of various goods and services, and construction for, the State and counties of Hawaii; and

 

     WHEREAS, however, the procurement process can be lengthy and complex due to numerous related requirements or processes in the Hawaii Revised Statutes, applicable Hawaii Administrative Rules, and jurisdictional administrative requirements and approvals that require consideration and inclusion when contracting for goods, services, or construction; and

 

     WHEREAS, to maintain the efficiency, effectiveness, and economic benefits of the Hawaii Public Procurement Code, as well as to preserve the Procurement Code's integrity, proper oversight of the Code and applicable administrative rules and requirements, including any penalties for violations of the Procurement Code or its related rules and requirements, needs to be ensured; and

 

     WHEREAS, Hawaii's State Procurement Office administers, implements, and ensures compliance with the Hawaii Public Procurement Code; and

     WHEREAS, one method of maintaining the integrity of the Hawaii Public Procurement Code is to impose sanctions against a contractor, including debarment or suspension, for serious, relevant criminal convictions or for violations of contract provisions; and

 

     WHEREAS, according to section 103D-702(a), Hawaii Revised Statutes:

 

"...The serious nature of debarment and suspension requires that these sanctions be imposed only in the public interest for a governmental body's protection and not for the purpose of punishment.  An agency shall impose debarment or suspension to protect a governmental body's interests and only for cause and in accordance with this section."; and

 

     WHEREAS, according to the State Procurement Office, no infrastructure currently exists to verify whether a contractor has committed and been found guilty of a serious criminal offense under state or federal statutes relating to a contractor's lack of integrity, honesty, or any other similar cause that would warrant a debarment of that contractor from a current contract or consideration for future contract awards; and

 

     WHEREAS, the lack of oversight on issues warranting debarment or suspension hinders the State Procurement Office's ability to properly enforce the Hawaii Public Procurement Code, and may result in the public interest's not being realized in public contracts for goods, services, or construction; now, therefore,

 

     BE IT RESOLVED by the House of Representatives of the Twenty-seventh Legislature of the State of Hawaii, Regular Session of 2014, the Senate concurring, that the State Procurement Office is requested to conduct a study on the number of debarments and suspensions of state contractors that occurred over the past ten years and the number of verified guilty felony criminal convictions that resulted in debarment or suspension of a contractor over the past three years; and
     BE IT FURTHER RESOLVED that the study include the number and circumstances involved in debarments or suspensions relating to the following factors:

 

(1)  Whether the contractor had effective standards of conduct and internal control systems in place at the time of the cause for debarment or suspension;

 

     (2)  Whether the contractor brought the cause for debarment or suspension to the attention of the appropriate government agency in a timely manner;

 

     (3)  Whether the contractor conducted a full investigation of the cause for debarment or suspension;

 

     (4)  Whether the contractor cooperated with all government agencies investigating the cause for debarment or suspension;

 

     (5)  Whether the contractor has paid, or has agreed to pay, all criminal, civil, and administrative liabilities associated with the cause for debarment or suspension;

 

     (6)  Whether the contractor has taken appropriate disciplinary action against the individuals responsible for the cause for debarment or suspension;

 

     (7)  Whether the contractor has since implemented remedial measures to address the cause for debarment or suspension, including any measures identified by a government body or agency;

 

     (8)  Whether the contractor has instituted new or revised ethics training programs;

 

     (9)  Whether the contractor has had adequate time to eliminate the circumstances that led to the cause for debarment or suspension;

 

    (10) Whether the contractor's management recognizes and understands the seriousness of the misconduct; and

 

    (11) Whether the Chief Procurement Officer has allowed the debarred or suspended contractor to continue performance on any contract awarded prior to the effective date of the debarment or suspension; and

 

    BE IT FURTHER RESOLVED that the State Procurement Office assess the infrastructure needs required to validate with the Judiciary, Department of Labor and Industrial Relations, Department of Taxation, Department of Commerce and Consumer Affairs, and any other compliance agencies that may be applicable, whether a contractor or potential contractor has committed and been found guilty of a serious criminal offense or contract violation under state or federal statutes that would lead to disbarment or suspension; and

 

     BE IT FURTHER RESOLVED that the State Procurement Office is requested to submit a report of its findings and recommendations, including any proposed legislation, to the Legislature not later than 20 days prior to the convening of the Regular Session of 2015; and

 

     BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Governor and the Chief Procurement Officer.

 

 

 

	OFFERED BY:	_____________________________

Report Title: 

Requests the State Procurement Office to conduct a study on the number of debarments and suspensions of State contractors that occurred over the past ten years and the number of verified guilty felony criminal convictions that resulted in debarment or suspension of a contractor over the past three years.