Report Title:

Procurement

Description:

Establishes reverse auction and electronic bidding method as alternative methods for bidding on public procurement contracts.

HOUSE OF REPRESENTATIVES

H.B. NO.

24

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to procurement.

 

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

SECTION 1. Chapter 103D, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"PART . ALTERNATIVE COMPETITIVE BIDDING

§103D- Definitions. As used in this part:

"Electronic bidding" means the electronic solicitation and receipt of offers to contract for goods and services. Offers may be accepted and contracts may be entered by use of electronic bidding.

"Reverse auction" means a real-time purchasing process in which vendors compete to provide goods and services at the lowest selling price in an open and interactive electronic environment.

§103D- Alternative competitive bidding. (a) A governmental body may use reverse auction or electronic bidding to obtain competitive bids for the purchase of apparatus, supplies, materials, or equipment as an alternative to the applicable requirements in this chapter:

(1) Reverse auction. Under the reverse auction method of competitive bidding, the bidder's price may be revealed during the reverse auction. A reverse auction may be conducted by a governmental body or by a third-party under contract with the governmental body. A governmental body may also conduct a reverse auction through the state electronic procurement system if compliance with the procedures and requirements of the State's reverse auction process satisfies the governmental body's obligations under this chapter; and

(2) Electronic bidding. A governmental body may receive bids electronically in addition to or instead of written bids. Procedures for receipt of electronic bids for contracts that are subject to sections 103D-302, 103D-303, 103D-304, 103D-305, 103D-306, and 103D-307 shall be designed to ensure the security, authenticity, and confidentiality of the bids to at least the same extent as is provided for sealed written bids.

(b) The requirements of advertisement of bidding opportunities, timeliness of receipt of bids, the standard for the award of contracts, and all other requirements in this chapter that are not inconsistent with the methods authorized in this section shall apply to contracts awarded under this section.

(c) Reverse auctions shall not be used for the purchase or acquisition of construction aggregates, including but not limited to crushed stone, sand, and gravel.

§103D- Electronic procurement system. The policy board shall establish an electronic procurement system to be used to conduct reverse auctions and electronic bidding. The policy board shall provide all governmental bodies training in the use of the electronic procurement system.

§103D- Alternative competitive bidding rules. The policy board shall adopt all rules necessary to carry out the provisions of this part in accordance with chapter 91."

SECTION 2. This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________