Procurement code; architects

Amends section 103D-304, HRS, to require that professional
services be procured by a purchasing agency at the lowest
possible bid price.

HOUSE OF REPRESENTATIVES                H.B. NO.453        
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Section 103d-304, Hawaii Revised Statutes, is
 2 amended to read as follows:
 3      "103D-304  Procurement of professional services.(a)
 4 Professional services shall be procured in accordance with
 5 sections 103D-302, 103D-303, 103D-305, 103D-306, or 103D-307, or
 6 this section.  Contracts for professional services shall be
 7 awarded on the basis of demonstrated competence and qualification
 8 for the type of services required, and at [fair and reasonable
 9 prices.] the lowest bid price; unless the demonstrated competence
10 and qualification for the type of services required dictate
11 otherwise.
12      (b)  At a minimum, before the beginning of each fiscal year,
13 the head of each purchasing agency shall publish a notice
14 inviting persons engaged in providing professional services which
15 the agency anticipates needing in the next fiscal year, to submit
16 current statements of qualifications and expressions of interest
17 to the agency.  Additional notices may be given if:
18      (1)  The response to the initial notice is inadequate;
19      (2)  The response to the initial notice does not result in

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 1           adequate representation of available sources; or
 2      (3)  Previously unanticipated needs for professional
 3           services arise.
 4 The chief procurement officer may specify a uniform format for
 5 statements of qualifications.  Persons may amend these statements
 6 by filing a new statement prior to the date designated for
 7 submission.
 8      (c)  The head of the purchasing agency shall designate a
 9 review committee consisting of a minimum of three employees from
10 the agency or from another governmental body, with sufficient
11 education, training, and licenses or credentials for each type of
12 professional service which may be required.  The committee shall
13 review and evaluate all submissions and other pertinent
14 information, including references and reports, and prepare a list
15 of qualified persons to provide these services.  Persons included
16 on the list of qualified persons may amend their statements of
17 qualifications as necessary or appropriate.  Persons shall
18 immediately inform the head of the purchasing agency of any
19 change in information furnished which would disqualify the person
20 from being considered for a contract award.
21      (d)  Whenever during the course of the fiscal year the
22 agency needs a particular professional service, the head of the
23 purchasing agency shall designate a screening committee to

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 1 evaluate the statements of qualification and performance data of
 2 those persons on the list prepared pursuant to subsection (c)
 3 along with any other pertinent information, including references
 4 and reports.  The screening committee shall be comprised of a
 5 minimum of three employees of the purchasing agency with
 6 sufficient education, training, and licenses or credentials in
 7 the area of the services required.  If the purchasing agency and
 8 using agency are different, the committee shall include at least
 9 one qualified employee from the using agency.  When the committee
10 includes an employee from a using agency, the employee shall be
11 appointed by the head of the using agency.  If qualified
12 employees are not available from these agencies, the officers may
13 designate employees of other governmental bodies.  The screening
14 committee shall establish criteria for the selection, and
15 evaluate the submissions of persons on the list prepared pursuant
16 to subsection (c) and any other pertinent information which may
17 be available to the agency, against that selection criteria.  The
18 committee may conduct confidential discussions with any person
19 who is included on the list prepared pursuant to subsection (c)
20 regarding the services which are required and the services they
21 are able to provide.  In conducting discussions, there shall be
22 no disclosure of any information derived from proposals submitted
23 by competing offerors.  The committee shall provide the head of

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 1 the purchasing agency with the names of a minimum of three
 2 persons who the committee concludes are the most qualified to
 3 provide the services required, with a summary of each of their
 4 qualifications.  The contract file shall contain a copy of the
 5 criteria established for the selection and the committee's
 6 summary of qualifications for each of the persons provided to the
 7 head of the purchasing agency by the committee.
 8      (e)  The head of the purchasing agency shall evaluate the
 9 summary of qualifications for each of the persons provided by the
10 screening committee and may conduct additional discussions with
11 any of them.  The head of the purchasing agency shall then rank
12 the persons in order of preference[.] according to qualifications
13 and the lowest bid price.  The head of the purchasing agency
14 shall negotiate a contract with the [first] person[, including a
15 rate of compensation which is fair and reasonable, established]
16 offering the lowest bid price in writing, [and] unless the head
17 of the purchasing agency justifies that some other price is
18 warranted based upon the estimated value, scope, complexity, and
19 nature of the services to be rendered.  If a satisfactory
20 contract cannot be negotiated with the [first] person[,] offering
21 the lowest bid price, negotiations with that person shall be
22 formally terminated and negotiations with the [second] person on
23 the list with the next lowest bid price shall commence.  Failing

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 1 accord with the [second] next person, negotiations with the
 2 [next] third person on the list shall commence.  If a contract at
 3 a fair and reasonable price cannot be negotiated, the screening
 4 committee may be asked to submit a minimum of three additional
 5 persons for the head of the purchasing agency to rank, and resume
 6 negotiations in the same manner provided in this subsection.
 7 Negotiations shall be conducted confidentially.
 8      (f)  Contracts for professional services of less than
 9 [$25,000] $5,000 may be negotiated by the head of a purchasing
10 agency, with any two persons who appear on the list of qualified
11 persons established pursuant to subsection (c).  Negotiations
12 shall be conducted in the manner set forth in subsection (e) but
13 without establishing any order of preference." 
14      SECTION 2.  Statutory material to be repealed is bracketed.
15 New statutory material is underscored.
16      SECTION 3.  This Act shall take effect upon its approval.
18                           INTRODUCED BY:_________________________