Bill Text: HI HB2175 | 2014 | Regular Session | Introduced
Bill Title: Competitive Sealed Bidding; Subcontractors
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-02-04 - The committee(s) on EDB recommend(s) that the measure be deferred. [HB2175 Detail]
Download: Hawaii-2014-HB2175-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2175 |
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TWENTY-SEVENTH LEGISLATURE, 2014 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to procurement.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the execution and delivery of public works projects are often delayed due to bid protests by non-lowest bidders challenging technical mistakes in the lowest bidder's proposal. As a result of bid protests, projects are delayed, funding lapses, and inflation increases final project costs.
The legislature further finds that many recent bid protests have been based solely on subcontractor listing and licensing issues, causing major delays and cost increases for public works construction projects. Specifically, section 103D-302, Hawaii Revised Statutes, requires that all subcontractors or joint contractors to be used on a public works project be listed on the bid proposal submitted to any state or county agency subject to the procurement code. As a result, numerous protests allege that the bidder failed to list a required subcontractor or that the listed subcontractor did not possess the appropriate license and was not qualified to perform the work. In fiscal year 2013 alone, the department of accounting and general services estimated that the State paid over $2,600,000 extra for public works projects due to problems with subcontractor listings.
The legislature further finds that time constraints between the time a bidder receives all subcontractor bids and the bid submission deadline can cause inadvertent failure to list a required subcontractor or listing of an improperly licensed subcontractor in a bid, resulting in a bid protest. Often, due to the complexity of the laws regarding contractor licenses under chapter 444, Hawaii Revised Statutes; title 16, Hawaii Administrative Rules; and judicial, quasi-judicial, and agency interpretations of these laws and rules, bidders and subcontractors sometimes misunderstand the licensing requirements. The contractors license board currently recognizes over ninety-eight different specialty contractor licenses that a prime bidder must sort through to determine the appropriate subcontractor specialty to be listed on a bid.
In comparison, the federal government does not require the listing of subcontractors on any bid proposal. In fact, the federal government does not require a contractor's license to bid on or perform construction work.
The legislature further recognizes that the 2000 American Bar Association's Model Procurement Code, the model for Hawaii's procurement code, does not include such a subcontractor listing requirement.
The purpose of this Act is to eliminate the subcontractor listing requirement in the competitive sealed bidding process for public works construction projects.
SECTION 2. Section 103D-302, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) An invitation for bids shall be
issued, and shall include a purchase description and all contractual terms and
conditions applicable to the procurement. [If the invitation for bids is
for construction, it shall specify that all bids include the name of each
person or firm to be engaged by the bidder as a joint contractor or
subcontractor in the performance of the contract and the nature and scope of
the work to be performed by each. Construction bids that do not comply with
this requirement may be accepted if acceptance is in the best interest of the
State and the value of the work to be performed by the joint contractor or subcontractor
is equal to or less than one per cent of the total bid amount.]"
SECTION 3. Statutory material to be repealed is bracketed and stricken.
SECTION 4. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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Report Title:
Competitive Sealed Bidding; Subcontractors
Description:
Eliminates the requirement that construction bids for public works projects, submitted under the competitive sealed bidding process, list potential joint contractors and subcontractors.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
