REPORT TITLE:
Pub. Procurmt; Nonbid Contr.


DESCRIPTION:
Imposes a numerical limit on nonbid awards to the same entity
within a 5-year period, unless specially approved by the governor
or unless all eligible contractors have been awarded at least 1
contract.  Requires procurement office to electronically post
records of all contracts.  (SD2)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        797
THE SENATE                              S.B. NO.           S.D. 2
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO PUBLIC PROCUREMENT.



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

 1      SECTION 1.  Chapter 103D, Hawaii Revised Statutes, is
 
 2 amended by adding a new section to be appropriately designated
 
 3 and to read as follows:
 
 4      "103D-     Electronic posting of awards.  Notwithstanding
 
 5 section 103D-321 to the contrary, the chief procurement officer
 
 6 shall electronically post the name of each contractor awarded a
 
 7 contract for goods, services, or construction under this chapter;
 
 8 the amount and type of the contract; and the goods, services, or
 
 9 construction procured under the contract."
 
10      SECTION 2.  Section 103D-301, Hawaii Revised Statutes, is
 
11 amended to read as follows:
 
12      "[[]103D-301[]]  Methods of source selection.  (a)  Unless
 
13 otherwise authorized by law, all contracts shall be awarded by
 
14 competitive sealed bidding pursuant to section 103D-302, except
 
15 as provided in subsection (b) and in:
 
16      (1)  Section 103D-303 (Competitive sealed proposals);
 
17      (2)  Section 103D-304 (Professional services procurement);
 
18      (3)  Section 103D-305 (Small purchases);
 
19      (4)  Section 103D-306 (Sole source procurement); and
 

 
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                                     S.B. NO.           S.D. 2
                                                        
                                                        

 
 1      (5)  Section 103D-307 (Emergency procurements).
 
 2      (b)  Notwithstanding any other provision of law to the
 
 3 contrary, the total amount of nonbid contracts awarded to any one
 
 4 individual, sole proprietorship, corporation, limited liability
 
 5 company, firm, partnership, business, joint venture, joint stock
 
 6 company, group, hui, society, association, or similar entity
 
 7 within a five-year period, shall not exceed        awards,
 
 8 unless:
 
 9      (1)  The governor grants special approval for the award in
 
10           writing, based upon a recommendation from the
 
11           administrator of the state procurement office after a
 
12           public hearing pursuant to chapter 91; provided that
 
13           all records related to the public hearing, the
 
14           administrator's recommendation, and the governor's
 
15           approval shall be made available for public inspection
 
16           in accordance with section 103D-105; or
 
17      (2)  All contractors the chief procurement officer has
 
18           determined to be eligible to bid on nonbid contracts
 
19           have received at least one contract award within the
 
20           five-year period.
 
21 For purposes of this subsection, "nonbid contracts" refers to any
 
22 award made pursuant to subsection (a)(1) and (2).
 
23      The administrator shall adopt rules, pursuant to chapter 91,
 

 
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                                     S.B. NO.           S.D. 2
                                                        
                                                        

 
 1 that may be necessary for purposes of this section."
 
 2      SECTION 3.  Section 103D-321, Hawaii Revised Statutes, is
 
 3 amended by amending subsection (a) to read as follows:
 
 4      "(a)  The chief procurement officer shall maintain a record
 
 5 of all procurements for goods, services, or construction of
 
 6 $25,000 or more made under sections [[]103D-102(b)(5)[]],
 
 7 103D-303, 103D-304, 103D-305, 103D-306, and 103D-307 for a
 
 8 minimum of five years.  The record shall contain:
 
 9      (1)  Each contractor's name;
 
10      (2)  The amount and type of each contract; and
 
11      (3)  A listing of the goods, services, or construction
 
12           procured under each contract."
 
13      SECTION 4.  Statutory material to be repealed is bracketed.
 
14 New statutory material is underscored.
 
15      SECTION 5.  This Act shall take effect upon its approval.