Bill Text: HI SR58 | 2013 | Regular Session | Introduced

Hawaii Senate Resolution 58 (Prior Session Legislation)

Introduced

Bill Title: State Procurement Code; Identify Amendments

Spectrum: Strong Partisan Bill (Democrat 16-1)

Status: (Passed) 2013-06-07 - Certified copies of resolutions sent, 06-07-13. [SR58 Detail]

Download: Hawaii-2013-SR58-Introduced.html

THE SENATE	S.R. NO.	58
TWENTY-SEVENTH LEGISLATURE, 2013
STATE OF HAWAII

SENATE RESOLUTION

Requesting the Comptroller to establish a Task Force to study THE STATE Procurement Code and identify amendments that would increase the economy, efficiency, effectiveness, and impartiality in the procurement of public works construction projects.

WHEREAS, chapter 103D, Hawaii Revised Statutes, governs the procurement of goods, services, or construction by state and county agencies; and

WHEREAS, pursuant to chapters 103D and 103F, Hawaii Revised Statutes, the mission of the State Procurement Office is to promote economy, efficiency, effectiveness, and impartiality in procurement for state and county governments through development, implementation, and maintenance of policies and procedures that provide for broad-based competition, accessibility to government contracts, and fiscal integrity in an open, fair, and transparent procurement process; and

WHEREAS, the State Procurement Office adopts rules to implement the procurement law for all state and county agencies; provides coordination, review, analysis, implementation, and oversight services for various procurement projects; and provides training to ensure compliance with procurement laws; and

WHEREAS, chapter 103D, Hawaii Revised Statutes, was based on the framework provided by the American Bar Association's Model Procurement Code for State and Local Governments and was enacted to increase competition, ensure fairness, and establish greater uniformity in the public procurement of goods and services; and

WHEREAS, the state procurement code has been amended more than forty times since its enactment in 1993, and the numerous statutory changes have resulted in increased complexity in the procurement process; and

WHEREAS, in an effort to promote economy, efficiency, and fairness in public procurement, it is important to identify factors that may cause delays in the procurement process, including unnecessary bid preferences, bid protests, and increased contract prices for publicly funded infrastructure and construction projects; and

WHEREAS, the Hawaii Supreme Court's decision in Okada Trucking Co., Ltd. v. Board of Water Supply, 97 Haw. 450 (2002), is widely interpreted to mean that general engineering contractors and general building contractors are prohibited from undertaking any work, solely or as a part of a larger project, that would require the general contractor to act as a specialty contractor in any area where the general contractor has no license; and

WHEREAS, section 103D-302, Hawaii Revised Statutes, requires that all subcontractors to be used on a public works project be listed on the bid proposal submitted to any state agency in response to a bid request; and

WHEREAS, the State currently recognizes over ninety-eight different specialty contractor licenses that a bidder must review to determine whether a particular subcontractor specialty must be listed on a bid; and

WHEREAS, the federal government does not require the listing of subcontractors on any bid proposal and does not require a contractor's license to bid; rather, it relies on bonding and qualification of the prime contractor in awarding bids; and

WHEREAS, many recent bid protests have been based solely on subcontractor listing and licensing issues, resulting in major delays and cost increases on public works construction projects; and

WHEREAS, since the Okada decision, the number of bid protests based solely on a subcontractor listing have increased significantly, costing state taxpayers over $1,000,000; and

WHEREAS, Act 173, Session Laws of Hawaii 2012, requires the State Procurement Office to maintain statistics on solicitations and awards protested under section 103D-701, Hawaii Revised Statutes, for the purpose of improving procurement procedures; and

WHEREAS, it is important to continue to gather bid protest data and to study past bid protest outcomes to further determine where costs have increased due to bid protests in public works construction projects; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-seventh Legislature of the State of Hawaii, Regular Session of 2013, that the Comptroller is requested to establish a task force to determine the impact of the Okada Trucking Co., Ltd. v. Board of Water Supply, 97 Haw. 450 (2002), decision on bid protests and the cost impacts that bid protests have had for public works construction projects; and

BE IT FURTHER RESOLVED that the Comptroller, or the Comptroller's designee, is requested to serve as chair of the task force; and

BE IT FURTHER RESOLVED that the Comptroller is requested to solicit representatives from the following entities to serve on the task force, provided that those persons designated shall be knowledgeable of procurement procedures and issues within their respective organizations:

(1) The State Procurement Office;

(2) The University of Hawaii;

(3) The Department of Education;

(4) The Office of Hawaiian Affairs;

(5) The Department of Transportation;

(6) A county procurement department;

(7) A county board or department of water supply;

(8) The semi-autonomous public transit agency of the City and County of Honolulu;

(9) The Subcontractors Association of Hawaii;

(10) The Building Industry Association; and

(11) The General Contractors Association of Hawaii; and

BE IT FURTHER RESOLVED that the task force is requested to:

(1) Identify ways in which the state procurement code may increase the economy, efficiency, effectiveness, and impartiality in the procurement of public works construction projects;

(2) Propose amendments to the state procurement code that may increase efficiency and mitigate causes for bid protests in public works construction projects; and

(3) Determine whether administrative rules governing contractors reflect the intent of the Legislature and chapter 103D, Hawaii Revised Statutes, particularly as to the scope of work for the three contractor classifications, in order to eliminate construction trade disputes and diminish the number of bid protests; and

BE IT FURTHER RESOLVED that members of the task force are requested to serve without compensation, but may be reimbursed for expenses, including travel expenses, necessary for the performance of their duties; and

BE IT FURTHER RESOLVED that the task force is requested to submit its findings and recommendations, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2015; and

BE IT FURTHER RESOLVED that the Legislative Reference Bureau is requested to assist the task force in drafting proposed legislation; provided that the task force submits its request for proposed legislation, if any, to the Legislative Reference Bureau no later than November 1, 2014; and

BE IT FURTHER RESOLVED that the task force shall be dissolved on June 30, 2015; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Governor, President of the Senate, Speaker of the House of Representatives, Attorney General, Comptroller, Chief Procurement Officer, Director of Transportation, Superintendent of Education, Administrator of the Office of Hawaiian Affairs, President of the University of Hawaii System, Director of the Legislative Reference Bureau, the Mayor of each county, the board or department of water supply of each county, Executive Director of the Subcontractors Association of Hawaii, Executive Director of the Building Industry Association - Hawaii Chapter, and the Executive Director of the General Contractors Association of Hawaii.