Professional Service Contracts

Establishes criteria for screening committees for contracts for
professional services; requires publishing of criteria and
posting of information relating to awarded contracts.  (CD1)

THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 2000                                H.D. 1
STATE OF HAWAII                                            C.D. 1

                   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.
10      (b)  At a minimum, before the beginning of each fiscal year,
11 the head of each purchasing agency shall publish a notice
12 inviting persons engaged in providing professional services which
13 the agency anticipates needing in the next fiscal year, to submit
14 current statements of qualifications and expressions of interest
15 to the agency.  Additional notices may be given if:
16      (1)  The response to the initial notice is inadequate;
17      (2)  The response to the initial notice does not result in
18           adequate representation of available sources; or
19      (3)  Previously unanticipated needs for professional
20           services arise.

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

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 1 and reports.  The screening committee shall be comprised of a
 2 minimum of three employees of the purchasing agency with
 3 sufficient education, training, and licenses or credentials in
 4 the area of the services required.  If the purchasing agency and
 5 using agency are different, the committee shall include at least
 6 one qualified employee from the using agency.  When the committee
 7 includes an employee from a using agency, the employee shall be
 8 appointed by the head of the using agency.  If qualified
 9 employees are not available from these agencies, the officers may
10 designate employees of other governmental bodies.  The primary
11 selection criteria employed by the screening committee shall
12 [establish criteria for the selection, and] include but not be
13 limited to:
14      (1)  Experience and professional qualifications of the staff
15           to be assigned to the project;
16      (2)  Past performance on projects of similar scope for
17           public agencies or private industry; and
18      (3)  Capacity to accomplish the work in the required time.
19 The screening committee shall evaluate the submissions of persons
20 on the list prepared pursuant to subsection (c) and any other
21 pertinent information which may be available to the agency,
22 against [that] the selection criteria.  The committee may conduct
23 confidential discussions with any person who is included on the

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 1 list prepared pursuant to subsection (c) regarding the services
 2 which are required and the services they are able to provide.  In
 3 conducting discussions, there shall be no disclosure of any
 4 information derived from proposals submitted by competing
 5 offerors.  The committee shall provide the head of the purchasing
 6 agency with the names of a minimum of three persons who the
 7 committee concludes are the most qualified to provide the
 8 services required, with a summary of each of their
 9 qualifications.  The contract file shall contain a copy of the
10 criteria established for the selection and the committee's
11 summary of qualifications for each of the persons provided to the
12 head of the purchasing agency by the committee.
13      (e)  The head of the purchasing agency shall evaluate the
14 summary of qualifications for each of the persons provided by the
15 screening committee and may conduct additional discussions with
16 any of them.  The head of the purchasing agency shall then rank
17 the persons [in order of preference.] based on the selection
18 criteria.  The head of the purchasing agency shall negotiate a
19 contract with the first ranked person, including a rate of
20 compensation which is fair and reasonable, established in
21 writing, and based upon the estimated value, scope, complexity,
22 and nature of the services to be rendered.  If a satisfactory
23 contract cannot be negotiated with the first ranked person,

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 1 negotiations with that person shall be formally terminated and
 2 negotiations with the second ranked person on the list shall
 3 commence.  Failing accord with the second ranked person,
 4 negotiations with the next ranked person on the list shall
 5 commence.  If a contract at a fair and reasonable price cannot be
 6 negotiated, the screening committee may be asked to submit a
 7 minimum of three additional persons for the head of the
 8 purchasing agency to rank, and resume negotiations in the same
 9 manner provided in this subsection.  Negotiations shall be
10 conducted confidentially.
11      (f)  Contracts awarded under this section shall be posted
12 electronically within seven days of the contract award by the
13 chief procurement officer and shall remain posted for at least
14 one year.  Information to be posted shall include:
15      (1)  The names of the top five persons submitted under
16           subsection (d), or, if the list submitted under
17           subsection (d) is less than five, all of the persons
18           submitted;
19      (2)  The name of the person or organization receiving the
20           award;
21      (3)  The dollar amount of the contract;
22      (4)  The purchasing agency head making the selection; and
23      (5)  Any relationship of the principals to the official

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 1           making the award.
 2      [(f)] (g)  Contracts for professional services of less than
 3 $25,000 may be negotiated by the head of a purchasing agency,
 4 with any two persons who appear on the list of qualified persons
 5 established pursuant to subsection (c).  Negotiations shall be
 6 conducted in the manner set forth in subsection (e), but without
 7 establishing any order of preference."
 8      SECTION 2.  Statutory material to be repealed is bracketed.
 9 New statutory material is underscored.
10      SECTION 3.  This Act shall take effect upon its approval.