The cards are on the table, and the Hawaiian state legislature has dealt its state contractors a risky hand. A new bill, SB 1329, is set to eliminate the monetary cap on the bond required to challenge a procurement officer’s final decision on a bid protest. If the bill is signed into law, protestors could benefit from a quicker protest response time that would mandate a decision within 75 days (absent an extension). The rub is that if the protestor wishes to appeal that quicker decision, it would be required to stake a bond of 1 percent of the total contract value of the project. If that appeal then proves fruitless, the Hawaiian “house” wins and collects that 1 percent stake. Beyond serving as a wager Hawaiian contractors need to consider, ultimately the higher stakes will likely serve as a barrier to entry for many small businesses feeling wronged by state procurement decisions.
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