HOUSE OF REPRESENTATIVES |
H.B. NO. |
882 |
THIRTY-FIRST LEGISLATURE, 2021 |
H.D. 1 |
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STATE OF HAWAII |
S.D. 2 |
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Proposed |
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A BILL FOR AN ACT
RELATING TO PROCUREMENT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
PART I
SECTION 1. Chapter 103F, Hawaii Revised Statutes, is amended by adding a new section to part IV to be appropriately designated and to read as follows:
"§103F- Fair and reasonable pricing policy; cost or pricing data. (a) For each contracting action under this chapter, including any change orders or contract modifications that increase the original contract amount, the purchasing agency shall make a written determination that the amount of the contracting action is fair and reasonable.
(b) In determining whether the amount of the contracting action is fair and reasonable, the purchasing agency shall obtain the data necessary to perform a cost or price analysis to determine that the amount of the contracting action is a fair and reasonable price."
SECTION 2. Section 103D-201, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) The policy board shall consist of [seven]
six members. Notwithstanding the limitations of section 78-4, the
members of the board shall include:
(1) The comptroller;
(2) A county employee with significant high-level procurement experience; and
(3) [Five] Four persons who shall not
otherwise be full-time employees of the State or any county; provided that at
least one member shall be a [certified] professional in the field of
procurement, at least one member shall have significant high-level, federal
procurement experience, and at least [two members shall have significant experience
in the field of health and human services.] one member shall represent the
Hawaii Alliance of Nonprofit Organizations; Protecting Hawaii's Ohana, Children,
Under-Served, Elderly, and Disabled; or a similar organization.
Each appointed member shall have demonstrated sufficient
business or professional experience to discharge the functions of the policy
board. The initial and subsequent members of the policy board, other than the
comptroller, shall be appointed by the governor from a list of [three] two
individuals for each vacant position, submitted by a nominating committee
composed of [four] three individuals chosen as follows: [two
persons] one person appointed by the governor; one person appointed
by the president of the senate; and one person appointed by the speaker of the house[.]
of representatives. Except as provided in this section, the selection
and terms of the policy board members shall be subject to the requirements of
section 26-34. No member of the policy board shall act concurrently as a chief
procurement officer. The members of the policy board shall devote such time to
their duties as may be necessary for the proper discharge thereof."
SECTION 3. Section 103F-404, Hawaii Revised Statutes, is amended to read as follows:
"[[]§103F-404[]]
Treatment purchase of services. (a) Treatment services may be purchased
in accordance with this section if [either or both of] the following
circumstances are applicable:
[(1) Such services may become necessary from
time to time, but cannot be anticipated accurately on an annual or biennial
basis; and
(2) When deferring treatment until
solicitation, provider selection, and contract formation can be completed, the
problem needing treatment would be rendered worse than at the time of diagnosis
or assessment.
Contracts for treatment services shall be awarded
on the basis of demonstrated competence and qualification for the type of
service required, and at fair and reasonable prices.
(b) At a minimum, before the beginning of
each fiscal year, the administrator shall publish a notice describing the types
of treatment services that may be needed throughout the year on a periodic
basis and inviting providers engaged in providing these treatment services to
submit current statements of qualification and expressions of interest to the
office. The chief procurement officer may specify a uniform format for
statements of qualifications.]
(1) The need for treatment services is unanticipated and arises from time to time;
(2) The required services are for a one-time purchase for not more than $100,000 and no longer than one year;
(3) The services are industry standard services and are generally accepted practices by the industry or profession; and
(4) The award of a contract is based on demonstrated competence and qualification for the type of service required and at fair and reasonable prices.
(b) The head of the purchasing agency, or a designee, shall, at a minimum, publish a notice describing the types of treatment services that may be needed throughout the fiscal year on an as-needed basis and invite providers engaged in providing these treatment services to submit current statements of qualification and expressions of interest to the purchasing agency. Providers may amend these statements by filing an amended or new statement prior to the date designated for submission.
(c) The [administrator] head of the purchasing
agency shall form an initial review committee for each profession,
consisting of a minimum of three employees from a state agency or agencies with
sufficient education, training, and licenses or credentials to evaluate the
statements of qualifications which the [administrator] head of the purchasing
agency receives in response to the notice published pursuant to subsection
(b). The committee shall review and evaluate the submissions and other pertinent
information, including references and reports, and prepare a list of qualified
providers to provide treatment services during the fiscal year. Providers
included on the list of qualified treatment providers may amend their statements
of qualifications as necessary or appropriate. Providers shall immediately
inform the [administrator] head of the purchasing agency of any changes
in information furnished [which] that would disqualify the
provider from being considered for a contract award.
(d) When the need to purchase treatment services arises, the head of a purchasing agency shall select the provider most qualified to provide the needed treatment from the list of qualified providers.
(e) The head of the purchasing agency, or a
designee, shall negotiate a contract, including a rate of compensation [which]
that is fair and reasonable, established in writing, and based upon the
estimated value, scope, nature, and complexity of the treatment services to be
rendered, or use the rate established by the [administrator,] head of
the purchasing agency, if any. If negotiations fail, upon written notice
of an impasse to the provider selected under subsection (d), the head of the
purchasing agency shall choose another provider from the list of qualified
providers, and conduct further negotiations. Negotiations shall be conducted
confidentially.
(f) Contracts for treatment services in
excess of $100,000 or that last for more than one year shall [be
procured using section 103F-402, competitive purchase of services, unless a
waiver of this subsection is approved by the chief procurement officer.] utilize
an applicable method of procurement."
SECTION 4. Section 103F-405, Hawaii Revised Statutes, is amended to read as follows:
"[[]§103F-405[]] Small
purchases. Purchases of health and human services of less than [$25,000]
$100,000 are small purchases, and shall be made in accordance with [section
103D-305 and] rules adopted by the policy board to implement [that] this
section."
SECTION 5. Section 103F-202, Hawaii Revised Statutes, is repealed.
["[§103F-202]
Community council. (a) There is established a community council on
purchase of health and human services. The community council shall be comprised
of no more than nine voting members, and one non-voting, ex-officio member of the
interagency committee on purchase of health or human services designated by the
majority of the members of the committee. There shall be a member from each county,
except the county of Kalawao, and up to five members interested in health, human
services, employment, or the provision of services to children and youth.
(b)
Voting members shall be appointed by the governor and serve for four years. Each
voting member shall serve until the member's successor is appointed. Section 26-34
shall apply insofar as it relates to the number of terms and consecutive number
of years a member may serve on the council.
(c)
Members shall serve without compensation, but shall be reimbursed for actual expenses,
including travel expenses, necessary for the performance of their duties.
(d)
The community council shall advise the administrator about or assist the administrator
in:
(1) Market or business conditions facing providers;
(2) Securing
input from providers to facilitate agency decision-making to assess needs, plan,
budget, and purchase health and human services;
(3) Facilitating
provider participation in the process used by state agencies to plan for and purchase
health and human services;
(4) Establishing
schedules for planning and purchasing health and human services in relation to the
annual and biennial budget cycles;
(5) Developing
criteria to evaluate proposals to provide health and human services, and for restrictive
purchases under section 103F-403; and
(6) The needs of purchasing agencies and providers
for education and training to improve planning for or purchasing of health and human
services."]
PART II
SECTION 6. The legislature finds that under the State's procurement code, an aggrieved party, that submitted a bid for a state project that was not awarded the bid, may protest the bid award. The legislature further finds that procurement protest review can be lengthy, causing project delays, thereby increasing project costs that are borne by taxpayers. Thus, it is imperative that the review process for protests be completed in a timely manner to reduce the cost of state projects. Establishing a deadline for bid protests to be reviewed and resolved would expedite the protest review process and reduce the cost associated with state-awarded projects.
The purpose of this part is to create time limits to resolve protests to the awards of competitive sealed proposal contracts and procurements of professional services.
SECTION 7. Section 103D-701, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:
"(c) The chief procurement officer or
a designee shall resolve any protest as expeditiously as possible. If the
protest is not resolved by mutual agreement, the chief procurement officer or a
designee shall [promptly] issue a written decision [in writing]
to uphold or deny the protest[.] within seventy-five calendar days of
receipt of the protest; unless extenuating circumstances require additional
time, which shall not exceed an additional thirty calendar days. The decision
shall:
(1) State the reasons for the action taken; and
(2) Inform the protestor of the protestor's right to an administrative proceeding as provided in this part, if applicable."
PART III
SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 9. This Act shall take effect on July 1, 2112.
Report Title:
Procurement; Purchase of Health and Human Services; Procurement Policy Board; Treatment Services; Community Council; Procurement Protests; Resolution; Chief Procurement Officer; Time Limit
Description:
Requires purchasing agencies to make a written determination that the amount of a contracting action for purchases of health and human services is fair and reasonable. Amends the selection process and composition of the procurement policy board. Amends the circumstances for when treatment services may be purchased and the procedure to purchase such services. Increases the small purchase threshold. Repeals the establishment of the community council on purchase of health and human services. Requires the chief procurement officer or designee to address protests as expeditiously as possible. Creates time limits to resolve protests to the awards of competitive sealed proposal contracts and procurements of professional services. Effective 7/1/2112. (Proposed SD2)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.