Report Title:

Public Procurement

Description:

Provides procedures for procuring architect-engineer services for the design and construction of correctional facilities, including the process for competitive sealed proposals for design-build construction.

HOUSE OF REPRESENTATIVES

H.B. NO.

1320

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO PUBLIC PROCUREMENT.

 

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

SECTION 1. The purpose of this Act is to develop request-for-proposals for designing and building new facilities to address Hawaii's ever-increasing correctional facilities problem. The present Halawa correctional facility is overcrowded and needs innovative solutions if more facilities are to be developed on the site. The existing Oahu community correctional center is surrounded by the Kalihi neighborhood and cannot easily expand. There is also a need to consider alternative rehabilitation programs for which the State's existing correctional facilities are not suitably programmed and designed.

This Act envisions using a public procurement process meeting national standards for architect-engineer services and design-build services, should the State decide to use the design-build method of construction. Using national standards for procurement will increase public confidence in the award of state contracts.

The legislature directs the administration to program, design, and construct innovative, cost-efficient, and environmentally-sustainable correctional facilities on a site or sites available for the purpose. The preliminary program and designs shall also consider alternative program uses for the existing Oahu community correctional facility site in Kalihi. Any proposal for long-term financing or operations shall be solicited by separate proposals using the requirements of section 103D-303, Hawaii Revised Statutes.

SECTION 2. Procuring architect-engineer services. (a) Design professional services furnished by licensees under chapter 464, Hawaii Revised Statutes, shall be procured pursuant to this section. The contract for design professional services shall be awarded on the basis of demonstrated competence and qualification for the type of services required and at a fair and reasonable price.

(b) The state agency shall publish a notice inviting persons engaged in providing professional services that the State anticipates needing for the project, to submit current statements of qualifications and expressions of interest. The agency shall specify a uniform format for statements of qualifications. Persons may amend these statements by filing a new statement prior to the date designated for submission.

(c) The agency shall designate a review committee consisting of a minimum of three employees from the agency or from another governmental body, with sufficient education, training, and licenses or credentials for each type of professional service that may be required. The names and qualifications of the members of the review committee established under this subsection shall be public information. The committee shall review and evaluate all submissions and other pertinent information, including references and reports, and prepare a list of qualified persons to provide these services. Persons shall immediately inform the head of the purchasing agency of any change in information furnished that would disqualify the person from being considered for the contract award.

(d) The head of the agency shall then designate a selection committee to evaluate the statements of qualifications and performance data of those persons on the list prepared pursuant to subsection (c) along with pertinent information, including references and reports. The selection committee shall be comprised of three employees of the State and a minimum of two public members all with sufficient education, training, and licenses or credentials in the area of services required. The names and qualifications of the members of a selection committee established under this subsection shall be public information. If the purchasing agency and the using agency are different, the committee shall include at least one qualified employee from the using agency. When the committee includes a person from a using agency, the employee shall be appointed by the head of the using agency. If qualified employees are not available from these agencies, the officers may designate employees of other governmental bodies. The primary selection criteria employed for selection of design professionals in descending order of importance shall be:

(1) Experience and professional qualifications of the staff to be assigned to the project;

(2) Past performance on projects of similar scope for public agencies and private industry; and

(3) Capacity to accomplish the work in the required time.

The selection committee may add a secondary selection criterion of volume of work previously awarded to that person, to promote an equitable distribution of contracts and the availability of professional services in the State. The selection committee shall evaluate the submissions of persons on the list prepared pursuant to subsection (c) and any other pertinent information which may be available to the agency against the selection criteria. The committee may conduct confidential discussions with any person who is included on the list prepared pursuant to subsection (c) regarding the services required and the services the person is able to provide. In conducting discussions, there shall be no disclosure of information derived from similar proposals submitted by competing offerors. The selection committee shall then rank at least three offerors based on the selection criteria and send the ranking to the head of the agency. The head of the agency shall either ratify the ranking of the selection committee or revise the committee's ranking, based on interpretation of the selection criteria, of persons deemed to be the most qualified to provide the service required. The contract file shall contain a copy of the summary of qualifications for the ranking of each of the persons provided to the head of the purchasing agency for contract negotiations.

(e) The head of the purchasing agency shall negotiate a contract with the first ranked person, including a rate of compensation that is fair and reasonable, established in writing, and based upon the estimated value, scope, complexity, and nature of services to be rendered. If a satisfactory contract cannot be negotiated with the first ranked person, negotiations with that person shall be formally terminated and negotiations with the second ranked person in the list shall commence. Failing accord with the second ranked person, negotiations with the next ranked person on the list shall commence. If a contract at a fair and reasonable price cannot be negotiated, the selection committee shall be asked to submit a minimum of three additional persons for the head of the purchasing agency to resume negotiations in the same manner provided in this subsection. Negotiations shall be conducted confidentially.

(f) Public notice of the contract award shall conform to the requirements of section 103D-304(f), Hawaii Revised Statutes.

SECTION 3. Prior to procurement of construction, the selected design professionals shall be responsible for preparing the environmental assessment and environmental impact statement. Subsequent construction shall be procured using final design professional services and section 103D-302, Hawaii Revised Statutes, or a competitive sealed proposal. If the State determines in writing that technical or construction innovation will yield enhanced results, or there is a reduced likelihood of receiving competitive sealed bids due to unique project conditions or geographical location, the competitive sealed proposal for design-build construction process of section 4 of this Act shall be used.

SECTION 4. Competitive sealed proposals for design-build construction. (a) The proposal will combine final design professional and construction contracting services into a single contract. The design professionals awarded the preliminary design contract under section 3 of this Act shall remain the State's consultants to assist in reviewing the final design and shall not be eligible to be a competitor under this section.

(b) Proposals shall be solicited through a request for proposals using a two-step process:

(1) The first step shall be a request for qualifications to develop a short-list of a minimum of three and a maximum of five offerors. The short-list selection criteria in descending order of importance shall be:

(A) Experience in the project type and professional qualifications of the staff to be assigned to the project;

(B) Past performance on projects of similar scope for public agencies and private industry; and

(C) Capacity to accomplish the work in the required time; and

(2) The second step of the process shall be a proposal from each short-listed offeror. The request for proposals shall state the relative numerical importance of price and other evaluation factors.

(c) Proposals shall be opened so as to avoid disclosure of contents to competing offerors during the process of negotiation. A register of proposals shall be prepared in accordance with rules adopted by the policy board and shall be open for public inspection after contract award.

(d) Discussions may be conducted with responsible offerors who submit proposals determined to be reasonably susceptible of being selected for award for the purpose of clarification to assure full understanding of, and responsiveness to, the solicitation requirements. Offerors shall be accorded fair and equal treatment with respect to any opportunity for discussion and revision of proposals, and revisions may be permitted after submissions and prior to award for the purpose of obtaining the best and final offers. In conducting discussions, there shall be no disclosure of any information derived from proposals submitted by competing offerors.

(e) The prohibitions in subsections (c) and (d) on disclosure of the contents of offers received notwithstanding, the state procurement officer may decide that site plans and architectural renderings of all of the individual offers shall be made public information prior to award of the contract.

(f) Award shall be made to the responsible offeror whose proposal is determined in writing to be the most advantageous, taking into consideration price and the evaluation factors set forth in the request for proposals. No other factors or criteria shall be used in the evaluation. The contract file shall contain the basis on which the award is made.

(g) The State shall pay to each unsuccessful offeror who submits a technically responsive proposal one per cent of the project construction cost as established by the State, up to a maximum payment of one million dollars to each offeror. As a condition of receiving this payment, an unsuccessful offeror shall allow the State to use portions of submitted designs, not otherwise encumbered by patents or the like, created for the subject project.

SECTION 5. This Act shall take effect on July 1, 2003.

INTRODUCED BY:

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