THE SENATE

S.B. NO.

1391

THIRTY-FIRST LEGISLATURE, 2021

S.D. 2

STATE OF HAWAII

H.D. 1

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO PROCUREMENT.

 

 

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

 


SECTION 1. The legislature finds that a fundamental objective of the State's procurement practices and procedures is to control and, where possible, appropriately minimize costs to the State and counties, including both immediate and future costs. The procurement of goods, services, and construction by the State and counties can materially affect the ongoing "life‑cycle" operating and maintenance costs of the State and counties.

The legislature further finds that although existing law encourages the consideration of ongoing life-cycle costs to promote energy efficiency, it neither requires nor effectively provides for the full and effective accounting and consideration of life-cycle operation and maintenance costs in procurement practices and procedures. Full and effective accounting and consideration of life-cycle costs in the procurement of goods, services, and construction is critical to ensure the economic management of the State's financial resources.

The purpose of this Act is to authorize the procurement policy board to adopt specific rules that require the consideration of life-cycle costs in all state procurements.

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

""Life-cycle costs" means the sum of the present values of investment costs, capital costs, installation costs, energy costs, operating costs, maintenance costs, and disposal costs, over the lifetime of the project, product, or measure."

SECTION 3. Section 103D-211, Hawaii Revised Statutes, is amended to read as follows:

"103D-211 Procurement rules. (a) The procurement policy board shall adopt all rules necessary to carry out the purposes of this chapter and to implement its provisions in accordance with chapter 91. The policy board shall not delegate its power to adopt rules.

(b) No rule shall change any commitment, right, or obligation of the State or of a contractor under a contract in existence on the effective date of such rule.

(c) The procurement policy board may adopt and, as necessary, amend rules to:

(1) Provide standards and procedures for the effective consideration of expected operation, maintenance, disposal, and any other directly-induced costs, including:

(A) The determination of which types of procurements shall require an analysis and identification of life-cycle costs used in bid evaluation;

(B) The specification of methods for the determination of life‑cycle costs used in bid evaluation; and

(C) The specification of criteria and methods for appropriate weighing of life-cycle costs in bid evaluation; and

(2) Ensure that modifications to the contracts or specifications for procurements, including any value engineering provisions in accordance with section 103D-411, do not result in net increases to the total costs, including immediate or future operating, maintenance, disposal, or any other directly-induced costs associated with the procured goods, services, or construction to the State or counties."

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2112.



 

Report Title:

Procurement Policy Board; Procurement Rules; Life-cycle Costs

 

Description:

Authorizes the procurement policy board to adopt specific rules relating to life-cycle cost analysis. Effective 7/1/2112. (HD1)

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.