Report Title:

Procurement; Protest Bond

 

Description:

Requires a protest bond when a procurement protest is initiated.

(HB511 HD1)

HOUSE OF REPRESENTATIVES

H.B. NO.

511

TWENTY-FIRST LEGISLATURE, 2001

H.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO REMEDIES OF PART VII, CHAPTER 103D, HAWAII REVISED STATUTES.

 

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

SECTION 1. Section 103D-701, Hawaii Revised Statutes, is amended to read as follows:

"§103D-701 Authority to resolve protested solicitations and awards. (a) Any actual or prospective bidder, offeror, or contractor who is aggrieved in connection with the solicitation or award of a contract may protest to the chief procurement officer or a designee as specified in the solicitation. A protest shall be submitted in writing within five working days after the aggrieved person knows or should have known of the facts giving rise thereto; provided that a protest of an award or proposed award shall in any event be submitted in writing within five working days after the posting of award of the contract either under section 103D-302 or 103D-303, as applicable; provided further that no protest based upon the content of the solicitation shall be considered unless it is submitted in writing prior to the date set for the receipt of offers.

(b) Protests submitted after the date set for the receipt of offers shall be either accompanied by a protest bond, or the protest bond may be submitted no later than ten days after the date set for receipt of protest. The protest bond shall be provided by a surety company authorized to do business in the State and made payable to the State. In the alternative, the equivalent in cash or another form specified in the rules may be accepted. The protest bond shall be claimed by the State when the protest process does not sustain the protest in favor of the protestor. The bond shall be in the following amounts:

(1) $ for offers or cost estimates of $50,000 or less;

(2) $ for offers or cost estimates over $50,000 to $500,000; and

(3) $ for offers or cost estimates over $500,000.

[(b)] (c) The chief procurement officer or a designee, prior to the commencement of an administrative proceeding under section 103D-709 or an action in court pursuant to section 103D-710, may settle and resolve a protest concerning the solicitation or award of a contract. This authority shall be exercised in accordance with rules adopted by the policy board.

[(c)] (d) If the protest is not resolved by mutual agreement, the chief procurement officer or a designee shall promptly issue a decision in writing to uphold or deny the protest. The decision shall:

(1) State the reasons for the action taken; and

(2) Inform the protestor of the protestor's right to an administrative proceeding as provided in this part, if applicable.

[(d)] (e) A copy of the decision under subsection [(c)] (d) shall be mailed or otherwise furnished immediately to the protestor and any other party intervening.

[(e)] (f) A decision under subsection [(c)] (d) shall be final and conclusive, unless any person adversely affected by the decision commences an administrative proceeding under section 103D-709.

[(f)] (g) In the event of a timely protest under subsection (a), no further action shall be taken on the solicitation or the award of the contract until the chief procurement officer makes a written determination that the award of the contract without delay is necessary to protect substantial interests of the State.

[(g)] (h) In addition to any other relief, when a protest is sustained and the protestor should have been awarded the contract under the solicitation but is not, then the protestor shall be entitled to the actual costs reasonably incurred in connection with the solicitation, including bid or proposal preparation costs and protest bond costs, but not attorney’s fees."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect on January 1, 2002.