Bill Text: HI SB2335 | 2022 | Regular Session | Amended
Bill Title: Relating To Procurement.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2022-03-16 - The committee(s) on GVR recommend(s) that the measure be deferred. [SB2335 Detail]
Download: Hawaii-2022-SB2335-Amended.html
THE SENATE |
S.B. NO. |
2335 |
THIRTY-FIRST LEGISLATURE, 2022 |
S.D. 2 |
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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. Chapter 103D, Hawaii Revised Statutes, is amended by adding a new section to part III to be appropriately designated and to read as follows:
"§103D- Competitive
sealed bidding; median bid method.
(a) Contracts shall be awarded
by competitive sealed bidding as provided in this section or section 103D-302, except
as otherwise provided in section 103D-301.
Awards of contracts by competitive sealed bidding may be made after
single or multi-step bidding. Competitive
sealed bidding does not include negotiations with bidders after the receipt and
opening of bids. Award is based on the
criteria set forth in the invitation for bids.
(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 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.
Construction bids that do not comply with the requirements of this subsection
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.
(c) Adequate public notice of the invitation for
bids shall be given a reasonable time before the date set forth in the
invitation for the opening of bids. The
policy board shall adopt rules that specify:
(1) The form that
the notice is to take;
(2) What constitutes
a reasonable interim between publication and bid opening; and
(3) How notice may
be published, including publication in a newspaper of general circulation,
notice by mail to all persons on any applicable bidders mailing list, publication
by any public or private telecommunication information network, or any other
method of publication it deems to be effective.
(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. 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.
(e) Bids shall be unconditionally accepted without
alteration or correction, except as authorized in this chapter or by rules adopted
by the policy board.
(f) Bids shall be evaluated based on the
requirements set forth in the invitation for bids. These requirements may include criteria to
determine acceptability such as inspection, testing, quality, workmanship,
delivery, and suitability for a particular purpose. Those criteria that will affect the bid price
and be considered in evaluation for award shall be objectively measurable, such
as discounts; transportation costs; total or life cycle costs; and the bidder's
past performance, if available. The
invitation for bids shall set forth the evaluation criteria to be used. No criteria may be used in bid evaluation
that are not set forth in the invitation for bids.
(g) Correction or withdrawal of inadvertently
erroneous bids before or after award, or cancellation of invitations for bids,
awards, or contracts based on those bid mistakes, shall be permitted in
accordance with rules adopted by the policy board. After bid opening no changes in bid prices or
other provisions of bids prejudicial to the interest of the public or to fair
competition shall be permitted. Except
as otherwise provided by rule, all decisions to permit the correction or withdrawal
of bids, or to cancel awards or contracts based on bid mistakes, shall be supported
by a written determination made by the chief procurement officer or head of a
purchasing agency.
(h) The contract shall be awarded with reasonable
promptness by written notice to the lowest responsible and responsive bidder whose
bid meets the requirements and criteria set forth in the invitation for bids. In the event all bids exceed available funds
as certified by the appropriate fiscal officer, the head of the purchasing agency
responsible for the procurement in question in situations where time or
economic considerations preclude resolicitation of work of a reduced scope may
negotiate an adjustment of the bid price, including changes in the bid
requirements, with the low responsible and responsive bidder, in order to bring
the bid within the amount of available funds. For construction projects, a purchasing agency
may choose to award the bid to the responsible and responsive bidder whose bid is
closest to the median of all bids submitted and meets the requirements and criteria
set forth in the invitation for bids; provided that the agency shall stipulate in
the invitation for bids that the median award method shall be used.
For purposes
of this subsection, if there is an even number of bidders, the median bidder shall
be the bidder whose bid is closest to and lower than the arithmetic mean of the
two middle bids.
(i) When it is not practicable to initially prepare a purchase description to support an award based on price, an invitation for bids that requests the submission of unpriced offers to be followed by an invitation for bids, which is limited to those bidders whose offers have been qualified under the criteria set forth in the first solicitation, may be used. If a multi-step sealed bidding process is used, the notice and the invitation for bids shall describe each step to be used in soliciting, evaluating, and selecting unpriced offers."
SECTION 2. Section 103D-301, Hawaii Revised Statutes, is amended to read as follows:
"§103D-301 Methods of source
selection. Unless otherwise
authorized by law, all contracts shall be awarded pursuant to the following
sections, as applicable:
(1) Section 103D-302 (Competitive sealed bids);
(2) Section 103D-303 (Competitive sealed proposals);
(3) Section 103D-304 (Professional services procurement);
(4) Section 103D-305 (Small purchases);
(5) Section 103D-306
(Sole source procurement); [and]
(6) Section 103D-307
(Emergency procurements)[.]; and
(7) Section 103D- (Median bid procurement)."
SECTION 3. Section 103D-302, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Contracts shall be awarded by competitive sealed bidding as provided in this section or section 103D- , except as otherwise provided in section 103D-301. Awards of contracts by competitive sealed bidding may be made after single or multi-step bidding. Competitive sealed bidding does not include negotiations with bidders after the receipt and opening of bids. Award is based on the criteria set forth in the invitation for bids."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2050.
Report Title:
Procurement; Competitive Sealed Bidding; Median Bid Procurement
Description:
Allows purchasing agencies to use the median bid method of procurement. Effective 7/1/2050. (SD2)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.