Honolulu, Hawaii



RE:    S.B. No. 2501

       S.D. 2




Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii




     Your Committee on Ways and Means, to which was referred S.B. No. 2501, S.D. 1, entitled:




begs leave to report as follows:


     The purpose and intent of this measure is to require public agencies to consider the past performance of contractors before awarding contracts.


     Specifically, this measure:


(1)  Requires public agencies to consider a contractor's previous work on similar projects before awarding a contract;


(2)  Requires each public agency that issues a request for proposals to evaluate a contractor's performance upon completion of a procurement contract and to maintain those evaluations in the public agency's files; and


(3)  Appropriates funds to the State Procurement Office to implement this measure.


     Your Committee received written comments in support of this measure from the State Procurement Office and the Department of Transportation.


     Your Committee received written comments in opposition to this measure from the City and County of Honolulu Department of Budget and Fiscal Services, the Subcontractors Association of Hawaii, and one individual.


     The General Contractors Association of Hawaii and the City and County of Honolulu Department of Design and Construction submitted comments on this measure.


     Your Committee finds that while the state procurement code presently authorizes procurement officers to consider a potential awardee's past performance, many procurement officers do not adequately weigh the historical performances of bidders and award contracts only based upon the lowest bid.  Your Committee believes that this measure will provide better guidance to procurement officers when considering the performance history of bidders.  Your Committee notes that the measure provides for an appropriation of $500,000 for the State Procurement Office to implement the measure's requirements.


     Your Committee has amended this measure by:


     (1)  Changing the appropriation amount to an unspecified amount; and


     (2)  Changing the effective date to July 1, 2050, to facilitate further discussion on the measure.


     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. 2501, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2501, S.D. 2.


Respectfully submitted on behalf of the members of the Committee on Ways and Means,