THE SENATE	S.B. NO.	3092
TWENTY-EIGHTH LEGISLATURE, 2016		S.D. 1
STATE OF HAWAII

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 resulting in a lapse in funding and other procurement issues.  Many times there are communications from a bidder indicating flaws or technical discrepancies in a low-bidder's proposal before a determination has been made that the low bidder is the responsible and responsive bidder.  Several recent informal inquires and bid challenges related to subcontractor listing and licensing issues have caused major delays and cost increases for public works construction projects.

     The legislature further finds that due to the large number of licenses available, it has become increasingly difficult for general contractors to verify whether a subcontractor has the proper license to perform the type of work that the subcontractor has been contracted to perform.  Ensuring that subcontractors meet all of the necessary requirements to perform contracted work on State and county projects will address licensing concerns and greatly minimize bid challenges pertaining to the verification of subcontractor qualifications and licensing.

     The purpose of this Act is to authorize procurement officers to consider a previously licensed and listed subcontractor's license as valid; provided that certain conditions are satisfied, and require subcontractors to submit a time stamped offer to a contractor two hours before the established bid deadline.

     SECTION 2.  Section 103D-104, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

     ""Ministerial act" means an act that does not involve judgment or discretion and is required based on established criteria or a set of adopted requirements as established by law."

     SECTION 3.  Section 103D-302, Hawaii Revised Statutes, is amended by amending subsection (g) to read as follows:

     "(g)  Correction or withdrawal of inadvertently erroneous bids before or after award, or cancellation of invitations for bids, awards, or contracts based on such 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[.]; provided that the procurement officer may consider a previously licensed and listed subcontractor's license as valid if the subcontractor's license at bid time has been suspended or forfeited due solely to a ministerial act, pursuant to chapter 444, and the subcontractor's license is restored prior to the award.

     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."

     SECTION 4.  Section 103D-310, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Unless the policy board, by rules, specifies otherwise, before submitting an offer, a prospective offeror, not less than ten calendar days prior to the day designated for opening offers, shall give written notice of the intention to submit an offer to the procurement officer responsible for that particular procurement[.]; provided that a subcontractor shall submit a time stamped offer to a contractor two hours before the established bid deadline; provided further that a subcontractor who does not comply with the two hour requirement shall be disqualified from consideration."

     SECTION 5.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect upon its approval.

 

 

 

Report Title:

Procurement Officers; Competitive Sealed Bidding; Subcontractors; Licensing

 

Description:

Authorizes procurement officers to consider a previously licensed and listed subcontractor's license as valid; provided that certain conditions are satisfied.  Requires subcontractors to submit a time stamped offer to a contractor two hours before the established bid deadline; provided that a subcontractor who does not comply with the two hour requirement is disqualified from consideration.  (SD1)

 

 

 

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