SB 1175: RELATING TO PROCUREMENT.

A BILL FOR AN ACT

RELATING TO PROCUREMENT.

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

     SECTION 1.  Section 103D-329, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§103D-329[]]  Past performance database.  (a)  No later than December 31, 2023, the state procurement office shall implement and administer a past performance database with regard to state contractors.

     (b)  The state procurement office shall adopt rules no later than December 31, 2023, pursuant to chapter 91 to establish:

     (1)  Information required to be included in the past performance database; provided that the information shall include:

          (A)  The name of the state contractor;

          (B)  The date of the project;

          (C)  The size of the project;

          (D)  A brief description of the project;

          (E)  The responsible managing employees for the project;

          (F)  Whether or not the project was timely completed;

          (G)  The project's authorized budget; [and]

          (H)  The positive or negative difference between the final cost of the project and the project's authorized budget, including the reasons for the difference, if any; and

          (I)  The state contractor's project performance assessment, determined by the state procurement office, including information on the following for goods, services, and construction, as applicable:

              (i)  Quality of work;

             (ii)  Schedule and timeliness of performance;

            (iii)  Cost and financial management;

             (iv)  Management, personnel, and labor;

              (v)  Safety and security; and

             (vi)  General comments.

     (2)  Procedures to inform a contractor of the information contained in the past performance database about that contractor; and

     (3)  Procedures for a contractor to correct or respond to the information contained in the past performance database about that contractor."

     SECTION 2.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 for all anticipated activities, including revising the past performance database, for the purposes of this Act.

     The sum appropriated shall be expended by the state procurement office for the purposes of this Act.

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the annual maintenance of the past performance database.

     The sums appropriated shall be expended by the state procurement office for the purposes of this Act.

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect January 1, 2491.

Report Title:

Procurement; Past Performance Database; Project Performance Assessment; Annual Maintenance; Appropriations

Description:

Adds state contractor's performance assessment to information required to be included in the past performance database maintained by the State Procurement Office.  Appropriates funds.  Effective 1/1/2491.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

relating to procurement.

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

     SECTION 1.  Section 103D-329, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§103D-329[]]  Past performance database.  (a)  No later than December 31, 2023, the state procurement office shall implement and administer a past performance database with regard to state contractors.

     (b)  The state procurement office shall adopt rules no later than December 31, 2023, pursuant to chapter 91 to establish:

     (1)  Information required to be included in the past performance database; provided that the information shall include:

          (A)  The name of the state contractor;

          (B)  The date of the project;

          (C)  The size of the project;

          (D)  A brief description of the project;

          (E)  The responsible managing employees for the project;

          (F)  Whether or not the project was timely completed;

          (G)  The project's authorized budget; [and]

          (H)  The positive or negative difference between the final cost of the project and the project's authorized budget, including the reasons for the difference, if any; and

          (I)  The state contractor's project performance assessment, determined by the state procurement office, including information on the following for goods, services, and construction, as applicable:

               (i)  Quality of work;

              (ii)  Schedule and timeliness of performance;

             (iii)  Cost and financial management;

              (iv)  Management, personnel, and labor;

               (v)  Safety and security; and

              (vi)  General comments.

     (2)  Procedures to inform a contractor of the information contained in the past performance database about that contractor; and

     (3)  Procedures for a contractor to correct or respond to the information contained in the past performance database about that contractor."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect upon its approval.

Report Title:

Procurement; Past Performance Database; Project Performance Assessment

Description:

Adds state contractor's performance assessment to information required to be included in the past performance database maintained by the State Procurement Office.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO. 319

Honolulu, Hawaii

RE:    S.B. No. 1175

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Government Operations, to which was referred S.B. No. 1175 entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

     The purpose and intent of this measure is to add a state contractor's performance assessment to the information required to be included in the Past Performance Database maintained by the State Procurement Office.

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

     Your Committee received testimony in opposition to this measure from the General Contractors Association of Hawaii.

     Your Committee finds that Act 188, Session Laws of Hawaii 2021, required the State Procurement Office to develop a Past Performance Database to increase accountability, enhance performance, and utilize taxpayer dollars more efficiently.  The database tracks the past performance of contractors, providing the State with additional information to make an informed decision when identifying the lowest "responsible bidder", thereby saving taxpayer money while ensuring positive project outcomes.  This measure adds an additional datapoint, past performance assessments, to the information required to be collated in the database.  This additional information will offer valuable insight into the responsibility, capability, and quality of a contractor and their work.

     Your Committee has amended this measure by:

     (1)  Inserting blank appropriation amounts for:

          (A)  Fiscal year 2025-2026 for all anticipated activities, including revising the Past Performance Database, for the purposes of this measure; and

          (B)  Fiscal years 2025-2026 and 2026-2027, for the annual maintenance of the Past Performance Database; and

     (2)  Inserting an effective date of January 1, 2491, to encourage further discussion.

     Your Committee notes that this measure, as amended, contains unspecified appropriation amounts.  Should your Committee on Ways and Means choose to deliberate on this measure, your Committee respectfully requests that it consider inserting the following appropriation amounts:

     (1)  $30,000 for fiscal year 2025-2026 for all anticipated activities, including revising the Past Performance Database, for the purposes of this measure; and

     (2)  $13,500 for fiscal years 2025-2026 and 2026-2027, for the annual maintenance of the Past Performance Database.

     As affirmed by the record of votes of the members of your Committee on Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1175, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1175, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Government Operations,