Bill > SB462

This bill amends Hawaii's procurement contract regulations by adding a new requirement for performance incentive contracts. Specifically, the bill mandates that all performance incentive contracts must clearly outline three key elements: a pricing basis, specific performance goals, and a mathematical formula for calculating how a contractor's profit, fee, or price will change depending on whether they exceed or fall short of the predetermined performance goals. The bill also makes some minor technical changes to the existing language about cost-reimbursement and cost-plus-a-percentage-of-cost contracts, such as updating grammatical phrasing and ensuring that such contracts do not jeopardize federal funding. The existing notification requirements for cost-plus-a-percentage-of-cost contracts remain in place, which include informing various government officials and posting public notices. The bill is set to take effect on January 1, 2525, which appears to be a placeholder date typical in draft legislation. The overall aim seems to be increasing transparency and accountability in government procurement contracts by requiring more precise and upfront documentation of financial incentive structures.

Budget and Finance, Government Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=462&year=2025