REPORT TITLE:
Procurement; Prof. Services


DESCRIPTION:
Amends the law relating to the procurement of professional
services to establish criteria used by screening committees for
the selection of qualified persons and to require the electronic
posting and publication of contracts that have been awarded,
including the name of the recipient, the dollar amount of the
contract, and the agency head making the selection.  (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2311
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 2000                                S.D. 1
STATE OF HAWAII                                            
                                                             
________________________________________________________________
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                   A  BILL  FOR  AN  ACT

RELATING TO THE PROCUREMENT CODE FOR DESIGN PROFESSIONAL
   SERVICES.


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

 1      SECTION 1.  Section 103D-304, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "§103D-304  Procurement of professional services.(a)
 
 4 Professional services shall be procured in accordance with
 
 5 sections 103D-302, 103D-303, 103D-305, 103D-306, or 103D-307, or
 
 6 this section.  Contracts for professional services shall be
 
 7 awarded on the basis of demonstrated competence and qualification
 
 8 for the type of services required, and at fair and reasonable
 
 9 prices.
 
10      (b)  At a minimum, before the beginning of each fiscal year,
 
11 the head of each purchasing agency shall publish, together with
 
12 its selection criteria, a notice inviting persons engaged in
 
13 providing professional services which the agency anticipates
 
14 needing in the next fiscal year, to submit current statements of
 
15 qualifications and expressions of interest to the agency.
 
16 Additional notices may be given if:
 
17      (1)  The response to the initial notice is inadequate;
 
18      (2)  The response to the initial notice does not result in
 
19           adequate representation of available sources; or
 

 
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 1      (3)  Previously unanticipated needs for professional
 
 2           services arise.
 
 3 The chief procurement officer may specify a uniform format for
 
 4 statements of qualifications.  Persons may amend these statements
 
 5 by filing a new statement prior to the date designated for
 
 6 submission.
 
 7      (c)  The head of the purchasing agency shall designate a
 
 8 review committee consisting of a minimum of three employees from
 
 9 the agency or from another governmental body, with sufficient
 
10 education, training, and licenses or credentials for each type of
 
11 professional service which may be required.  The committee shall
 
12 review and evaluate all submissions and other pertinent
 
13 information, including references and reports, and prepare a list
 
14 of qualified persons to provide these services.  Persons included
 
15 on the list of qualified persons may amend their statements of
 
16 qualifications as necessary or appropriate.  Persons shall
 
17 immediately inform the head of the purchasing agency of any
 
18 change in information furnished which would disqualify the person
 
19 from being considered for a contract award.
 
20      (d)  Whenever during the course of the fiscal year the
 
21 agency needs a particular professional service, the head of the
 
22 purchasing agency shall designate a screening committee to
 
23 evaluate the statements of qualification and performance data of
 

 
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 1 those persons on the list prepared pursuant to subsection (c)
 
 2 along with any other pertinent information, including references
 
 3 and reports.  The screening committee shall be comprised of a
 
 4 minimum of three employees of the purchasing agency with
 
 5 sufficient education, training, and licenses or credentials in
 
 6 the area of the services required.  If the purchasing agency and
 
 7 using agency are different, the committee shall include at least
 
 8 one qualified employee from the using agency.  When the committee
 
 9 includes an employee from a using agency, the employee shall be
 
10 appointed by the head of the using agency.  If qualified
 
11 employees are not available from these agencies, the officers may
 
12 designate employees of other governmental bodies.  The screening
 
13 committee shall [establish criteria for the selection, and] use
 
14 the major selection criteria listed below in descending order of
 
15 importance:
 
16      (1)  Experience and professional qualifications of its
 
17           assigned staff in the project type;
 
18      (2)  Past performance on projects of similar scope for
 
19           public agencies or private industry;
 
20      (3)  Capacity to accomplish the work in the required time;
 
21           and
 
22      (4)  Volume of work previously awarded to the person.
 
23 The screening committee may add sub-criterion within each major
 

 
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 1 criteria and shall evaluate the submissions of persons on the
 
 2 list prepared pursuant to subsection (c) and any other pertinent
 
 3 information which may be available to the agency, against [that]
 
 4 the selection criteria.  The committee may conduct confidential
 
 5 discussions with any person who is included on the list prepared
 
 6 pursuant to subsection (c) regarding the services which are
 
 7 required and the services they are able to provide.  In
 
 8 conducting discussions, there shall be no disclosure of any
 
 9 information derived from proposals submitted by competing
 
10 offerors.  The committee shall provide the head of the purchasing
 
11 agency with the names of a minimum of three persons who the
 
12 committee concludes are the most qualified to provide the
 
13 services required, with a summary of each of their
 
14 qualifications.  The contract file shall contain a copy of the
 
15 criteria established for the selection and the committee's
 
16 summary of qualifications for each of the persons provided to the
 
17 head of the purchasing agency by the committee.
 
18      (e)  The head of the purchasing agency shall evaluate the
 
19 summary of qualifications for each of the persons provided by the
 
20 screening committee and may conduct additional discussions with
 
21 any of them.  The head of the purchasing agency shall then rank
 
22 the persons [in order of preference.] based on the selection
 
23 criteria.  The head of the purchasing agency shall negotiate a
 

 
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 1 contract with the first ranked person, including a rate of
 
 2 compensation which is fair and reasonable, established in
 
 3 writing, and based upon the estimated value, scope, complexity,
 
 4 and nature of the services to be rendered.  If a satisfactory
 
 5 contract cannot be negotiated with the first ranked person,
 
 6 negotiations with that person shall be formally terminated and
 
 7 negotiations with the second ranked person on the list shall
 
 8 commence.  Failing accord with the second ranked person,
 
 9 negotiations with the next ranked person on the list shall
 
10 commence.  If a contract at a fair and reasonable price cannot be
 
11 negotiated, the screening committee may be asked to submit a
 
12 minimum of three additional persons for the head of the
 
13 purchasing agency to rank, and resume negotiations in the same
 
14 manner provided in this subsection.  Negotiations shall be
 
15 conducted confidentially.
 
16      (f)  Contracts awarded under this section shall be posted
 
17 electronically.  For each fiscal year, all contracts awarded
 
18 under this section by each purchasing agency shall be published
 
19 statewide at least once.  Information to be posted and published
 
20 shall include the name of the person or organization receiving
 
21 the award, the dollar amount of the contract, and the agency head
 
22 making the selection.
 
23      [(f)] (g)  Contracts for professional services of less than
 

 
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 1 $25,000 may be negotiated by the head of a purchasing agency,
 
 2 with any two persons who appear on the list of qualified persons
 
 3 established pursuant to subsection (c).  Negotiations shall be
 
 4 conducted in the manner set forth in subsection (e) but without
 
 5 establishing any order of preference."
 
 6      SECTION 2.  Statutory material to be repealed is bracketed.
 
 7 New statutory material is underscored.
 
 8      SECTION 3.  This Act shall take effect upon its approval.