STAND. COM. REP. NO. 931
RE: S.B. No. 1333
Honorable Ronald D. Kouchi
President of the Senate
Thirtieth State Legislature
Regular Session of 2019
State of Hawaii
Your Committee on Ways and Means, to which was referred S.B. No. 1333, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO PROCUREMENT,"
begs leave to report as follows:
The purpose and intent of this measure is to increase efficiency and accountability in state procurement.
Specifically, this measure:
(1) Requires that past performance be considered in sole source procurements and procurement by competitive sealed bids or competitive sealed proposals that meet or exceed the small purchase threshold;
(2) Requires that contracting officers consider past performance when making a determination of offeror responsibility;
(3) Requires procurement officers to conduct written past performance evaluations at least annually and at the time the work under a contract or order is completed, and maintain the evaluations in the department's procurement files and in a statewide past performance database;
(4) Establishes an initial procurement working group; and
(5) Appropriates funds to develop and create a statewide past performance database and outsource two full-time equivalent positions.
Your Committee received written comments in support of this measure from the Department of Accounting and General Services, State Procurement Office, and Subcontractors Association of Hawaii.
Your Committee finds that the past performance database created by this measure will reward contractors who have historically performed well by allowing them to cite their prior work when bidding on future contracts with the State.
Your Committee has amended this measure by:
(1) Clarifying that the initial procurement working group shall identify issues relating to existing procurement methods;
(2) Requiring the initial procurement working group to recommend specific objective criteria to be used when evaluating the past performance of bidders in a competitive sealed bid procurement;
(3) Clarifying that the state procurement administrator shall serve as chair of the initial procurement working group;
(4) Providing that the Director of Transportation or the Director's designee shall serve on the initial procurement working group;
(5) Providing that the initial procurement working group shall submit a report of its findings and recommendations to the Legislature no later than November 1, 2020;
(6) Changing the effective date to July 1, 2050, and providing that provisions requiring the consideration of past performance in certain procurements shall be effective January 1, 2050, to facilitate further discussion on the measure; and
(7) Making technical nonsubstantive amendments for purposes of clarity, consistency, and style.
As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1333, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1333, S.D. 2.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
DONOVAN M. DELA CRUZ, Chair