Hawaii-2010-SCR134-Introduced

WHEREAS, the Legislature adopted House Concurrent Resolution No. 76, H.D. 1, S.D. 1 in 2009, establishing a Task Force on Reinventing Government to examine the existing operations and organization of Hawaii's state government and recommend ways to make Hawaii's government more efficient; and

WHEREAS, The Task Force on Reinventing Government was formed in October 2009 and gathered together a varied group of government leaders, state agency and department heads, community leaders, nonprofit organization leaders, and business executives from around the State; and

WHEREAS, The Task Force formed subcommittees to examine six primary departments and issue areas and tasked each subcommittee with formulating up to five recommendations relating to each issue area; and

WHEREAS, on January 4, 2010, the Task Force as a whole adopted the recommendations of the subcommittees as the recommendations of the Task Force; and

WHEREAS, one of the concerns noted by the Land and Natural Resources Subcommittee was the complexity of the Hawaii Public Procurement Code and process for preparing Requests for Proposals for certain projects; and

WHEREAS, the Land and Natural Resources Subcommittee found that the State Procurement Office provides extensive training to agency staff on all islands on how to properly conduct procurement, and many projects are stalled as staff await procurement training; and

WHEREAS, the Land and Natural Resources Committee recommended centralizing complex procurement by having the State Procurement Office prepare complex procurement documentation for state agencies on a fee-for-service basis, rather than by providing procurement training to agency staff members; and

WHEREAS, the Legislature finds that the centralization of complex state procurement could create a fair system of charging agencies for the state procurement services they use and reduce delays in the commencement or completion of projects, thereby improving government efficiency and productivity; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-fifth Legislature of the State of Hawaii, Regular Session of 2010, the House of Representatives concurring, that the State Procurement Office or, if necessary, a working group convened by the State Procurement Office, is requested to perform a feasibility study to determine whether the State Procurement Office should centralize complex procurement services for state agencies through a fee-for-service or other funding mechanism; and

BE IT FURTHER RESOLVED that the feasibility study compare costs, personnel, and the amount of time required to prepare and complete complex procurement documentation and Requests for Proposals when the procurement process is undertaken by state agency staff trained by the State Procurement Office against the same measures when the State Procurement Office prepares documentation for complex procurement services and Requests for Proposals for state agencies; and

BE IT FURTHER RESOLVED that if the State Procurement Office or the working group, as the case may be, finds that centralization of complex procurement services is feasible, the Office or the working group is requested to include in its findings whether a fee-for-service funding mechanism for the Office's provision of services is recommended and the recommended amount of the fee for services; and

BE IT FURTHER RESOLVED that if the State Procurement Office or the working group, as appropriate, finds that a fee-for-service funding mechanism is not feasible or recommended, the Office or working group is requested to recommend an alternative funding mechanism, which may be similar to the collection of a percentage of certain special fund receipts for central service expenses pursuant to section 36‑27, Hawaii Revised Statutes, the reimbursement of a pro rata share of administrative expenses incurred by a department for the operation of a special fund pursuant to section 36‑30, Hawaii Revised Statutes, or another funding mechanism; and

BE IT FURTHER RESOLVED that the State Procurement Office or the working group, as appropriate, report its findings and recommendations to the Legislature no later than twenty days prior to the convening of the Regular Session of 2011; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Administrator of the State Procurement Office and the Comptroller.

	OFFERED BY:	_____________________________

Report Title:

State Procurement; Fee-For-Service; Procurement Centralization

THE SENATE	S.C.R. NO.	134
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII