Report Title:

Electronic Procurement

Description:

Allows purchase of goods, services, and construction to be made through online electronic procurement.

THE SENATE

S.B. NO.

1263

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO ELECTRONIC PROCUREMENT.

 

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

SECTION 1. It is the policy of the State to foster full and open competition to provide the State and counties the benefit of lowered costs. The purpose of this bill is to improve procurement efficiency by utilizing the advancements in information technology in the electronic procurement area, to achieve: 1) automation of the procurement process; 2) collection of comprehensive spending data; 3) reduction in the procurement cycle time; and 4) reduction in the cost of procured goods and services.

SECTION 2. Section 103D-104, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read:

""Competitive online bidding" means a reverse auction in which vendors compete against each other online in real time to provide goods, and award is to the lowest responsible, responsive bidder."

SECTION 3. Section 103D-302, Hawaii Revised Statutes, is amended by adding a new subsection to be appropriately designated and to read as follows:

"( ) Competitive online bidding may be used when the head of a purchasing agency determines that competitive online bidding for goods is advantageous. The invitation for online bids shall specify an opening date and time when the purchasing agency shall begin accepting real-time electronic bids, and shall remain open until the designated closing date and time. The purchasing agency shall require the bidders to register before the opening date and time, and as a part of the registration, to agree to any terms and conditions of the solicitation. All bid prices shall be posted electronically on the Internet, updated on a real-time basis, and shall allow a registered bidder to lower the price of its bid below the lowest bid posted to the Internet."

SECTION 4. Section 103D-305, Hawaii Revised Statutes, is amended to read as follows:

"103D-305 Small purchases; prohibition against parceling.

(a) Procurements of less than $25,000 for goods, services, or construction shall be made in accordance with procedures set forth in rules adopted by the policy board [that are] designed to ensure administrative simplicity and as much competition as is practicable; provided: [that multiple]

(1) Multiple expenditures shall not be created at the inception of a transaction or project so as to evade the requirements of this chapter; [and provided further that procurement]

(2) Procurement requirements shall not be artificially divided or parceled so as to constitute a small purchase under this section; and

(3) Awards $5,000 to less than $25,000 shall be posted electronically.

(b) Procurements of $25,000 to $100,000 shall be made in accordance with small purchase procedures; provided the procurement is through an electronic procurement system in accordance with procedures issued by the policy board."

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on October 1, 2003.

INTRODUCED BY:

_____________________________

BY REQUEST