Rep. Karamatsu’s Floor Speech on His Procurement Bill

Floor Speech on House Bill 691 Regarding Procurement.
Thursday, February 27, 2003

Mr. Speaker, I rise in support of this measure.

According to HRS §103D-1007, a state agency shall award a public works contract to an offeror who has filed all state tax returns due to the State and paid all amounts owing on such returns for two successive years prior to submitting the offer; provided that the amount of that offer is not more than seven percent higher than the amount offered by any competing contractor who has not filed or paid all applicable state taxes, and the amount of the offer by the state tax paying offeror is $5,000,000 or less.

However, the current statute disqualifies a joint venture of two or more contractors from receiving the preference because the joint venture has not previously filed a state tax return even though each contractor individually qualifies for this preference. This places the smaller contractor at a disadvantage in bidding against larger contractors.

For public works projects, House Bill 691 would allow a joint venture of two or more contractors to qualify for the preference if all joint venture contractors meet the requirements of HRS §103D-1007. Passage of this measure will help the smaller contractors to compete for and bid on larger contracts that they might not be able to perform individually and result in a greater number of bids being submitted.

Thank you Mr. Speaker.

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