Report Title:

Business development

Description:

Establishes the office of federal procurement and contracting within the department of business, economic development, and tourism.

HOUSE OF REPRESENTATIVES

H.B. NO.

1703

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to the department of business, economic development and tourism.

 

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

SECTION 1. The legislature finds that various agencies and departments within the federal government procure billions of dollars worth of goods and services to facilitate the functioning of the federal government. Some of the goods and services include processed foods, ongoing general services, internet and technology consulting, supplies, and construction support. The common factor is that federal procurement represents opportunities for minority businesses, small businesses, and for businesses in disadvantaged areas of Hawaii.

The legislature further finds that one obstacle preventing many local businesses from seizing the opportunity to sell to the federal government is the complexity of the federal procurement process. In the example of the recently awarded $6.9 billion housing renovation project, the federal government hosted several workshops to educate local subcontractors on the procedures and requirements of the federal procurement system. Such is not the case with the more perennial mundane procurement opportunities.

The legislature further finds that the state of Utah is a leader in bridging this gap. Utah invested resources to develop a state office to assist local businesses with the federal procurement process. With the State creating working partnerships with the U.S. Department of Defense, the U.S. Small Business Administration, the U.S. Department of Agriculture's Rural Development division, the U.S. Department of Justice, and local private businesses, Utah was able to promote the growth of its economy, and small businesses were able to obtain federal contracts.

One of the success stories in Utah is Uinta River Technology (URT). This technology outsourcing startup company was formed in early 1991 by the Northern Ute tribe with the help of the state. Its first contract was for outsourcing work under a five year, $73.8 million contract to process millions of Department of Immigration and Naturalization Services' arrival and departure forms. As the company gained more expertise in the high-tech area, procurement opportunities grew. URT acquired a contract to scan airplane drawings and designs onto CD-ROM's for Hill Air Force base in Utah, its first contract where URT was the prime contractor instead of a subcontractor. Sales and employee count have grown dramatically in the span of a few years.

This model has been repeated with success for many of the Native American tribes residing within Utah's boundaries. The latest company launched is Suh`dutsing Technologies, LLC, which specializes in data processing, data storage, website hosting, database design, network administration and installation, and customer support.

This model can be replicated here in Hawaii in the Department of Business, Economic Development, and Tourism to help minority groups, small business and disadvantaged areas. An office that has knowledge of the intricate federal procurement process presents an opportunity for increased employment, increased revenue, and economic diversification. It is the purpose of this Act to adapt the Utah model to Hawaii in an effort to increase business opportunities for our local businesses.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter OFFICE OF FEDERAL PROCUREMENT and contracting

§ -1. Office of Federal Procurement and Contracting. There is established an office of federal procurement and contracting within the department of business, economic development and tourism.

§ -2. General functions; powers and duties. The office shall have the following functions, powers, and duties:

(1) Acquire a working knowledge of federal procurement laws and contracting procedures;

(2) Research federal procurement requirements and federal law for opportunities where Hawaii-based businesses, either in partnership with other entities or singularly, can acquire competitive advantage in the federal procurement process;

(3) Actively facilitate and assist in bringing Hawaii-based businesses and other entities, private and government-based, together to take advantage of federal procurement opportunities;

(4) Engage in discussions and negotiations, as needed and as requested, with other governmental entities for the purpose of facilitating the inclusion of Hawaii-based businesses in federal procurement opportunities;

(5) Assist Hawaii-based businesses in contracting, including but not limited to contract drafting, with the federal government for purposes of supplying federal procurement needs; and

(6) Research, coordinate, and include other state, county, federal, or private programs that can facilitate the awarding of a federal procurement contract to a Hawaii-based business, either in part or in whole.

§ -3. Cooperation from other state agencies. The office may request and shall be entitled to receive from any state agency, such assistance, services, facilities, and data the office deems necessary to carry out the duties and functions of the office.

§ -4. Immunity from liability. Notwithstanding any law to the contrary, the work offered and the services rendered by the office under this chapter shall be considered facilitative in nature, and the office and the State shall not be liable for any consequences resulting from the work offered and the services rendered.

§ -5. Rulemaking. The department may adopt rules in accordance with chapter 91 for the purposes of this chapter.

S -6. Exemptions. In hiring employees to staff the office, the department shall be exempt from chapters 76 and 89.

§ -7. Staffing. Staffing of the office of federal procurement and contracting shall be accomplished through appointment or staffing transfers.

All officers and employees whose functions are transferred by this Act shall be transferred with their functions and shall continue to perform their regular duties upon their transfer, subject to the state personnel laws and this Act.

No officer or employee of the State having tenure shall suffer any loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefit or privilege as a consequence of this Act, and such officer or employee may be transferred or appointed to a civil service position without the necessity of examination; provided that the officer or employee possesses the minimum qualifications for the position to which transferred or appointed; and provided that subsequent changes in status may be made pursuant to applicable civil service and compensation laws.

An officer or employee of the State who does not have tenure and who may be transferred or appointed to a civil service position as a consequence of this Act shall become a civil service employee without the loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefits or privileges and without the necessity of examination; provided that such officer or employee possesses the minimum qualifications for the position to which transferred or appointed.

If an office or position held by an officer or employee having tenure is abolished, the officer or employee shall not thereby be separated from public employment, but shall remain in the employment of the State with the same pay and classification and shall be transferred to some other office or position for which the officer or employee is eligible under the personnel laws of the State as determined by the head of the department or the governor."

SECTION 3. This Act shall take effect upon its approval.

 

 

INTRODUCED BY:

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