STAND. COM. REP. NO. 851

Honolulu, Hawaii

RE: S.B. No. 1329

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committees on Judiciary and Ways and Means, to which was referred S.B. No. 1329, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

beg leave to report as follows:

The purpose and intent of this measure is to create time limits to resolve protests to the awards of competitive sealed proposal contracts and procurements of professional services.

Your Committees received testimony in support of this measure from the Department of Accounting and General Services; State Procurement Office; and Associated Builders and Contractors, Hawaii Chapter.

Your Committees find that under the State's procurement code, an aggrieved unsuccessful bidder for a project may protest the bid award. The procurement protest review can be lengthy, cause project delays, and thereby increase project costs that are borne by taxpayers. Additionally, your Committees find that the failure to timely review and resolve bid protests increases the costs of state-awards projects and some agencies have taken six months or longer to respond to bid protests that involve complex issues.

Your Committees have amended this measure by:

(1) Inserting an effective date of May 6, 2137, to encourage further discussion; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Judiciary and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1329, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 1329, S.D. 2.

Respectfully submitted on behalf of the members of the Committees on Judiciary and Ways and Means,

________________________________ DONOVAN M. DELA CRUZ, Chair

________________________________ KARL RHOADS, Chair