Engineering firms oppose bill to cap agency spending on external consultants; warn of in-house capacity limits

Representatives of the American Council of Engineering Companies of Hawaii (ACECH) testified Feb. 4 against Senate Bill 1543, which would require purchasing agents to justify hiring external consultants and would cap agency spending on such consultants.

Charles Jury, president-elect of ACECH's board, said ACECH represents over 70 member firms and about 1,500 employees statewide and that while the bill’s intent "appears to be well intended," the proposed limits and procedural requirements could lengthen procurement, reduce needed outside expertise and undermine the separation between owner and designer.

Jury told the committee that the bill’s mandatory cost-benefit analyses, legislative approvals and spending caps risk delaying critical infrastructure projects at a time when many state agencies already face significant vacancies. "Capping spending limits on external consultants, especially in the shortage of in-house expertise, could delay infrastructure and important projects for the state," he said.

ACECH provided written testimony listing seven specific concerns and cited an external study comparing in-house design costs with external consultants. The group urged the committee to consider workforce capacity, the need for independent third-party review and the administrative burden of added legislative oversight.

Ending: The committee received testimony and recorded the opposition; countermotions or amendments were not adopted on Feb. 4 and the committee will return for decision-making on Feb. 6.