Hawaii Revised Statutes 103d. Hawaii Public Procurement Code

PART I. GENERAL PROVISIONS

• 103d-101 Requirements of Ethical Public Procurement.
  (a) All public employees shall conduct and participate in public procurement in an ethical manner. In conducting and participating in procurement, public employees shall:...
• 103d-102 Application of This Chapter.
  (a) This chapter shall apply to all procurement contracts made by governmental bodies whether the consideration for the contract is cash, revenues, realizations, receipts,...
• 103d-103 Retention of Written Determinations.
  Written determinations required by this chapter shall be retained in the appropriate official files of the chief procurement officer or in the case of delegated...
• 103d-104 Definitions.
  As used in this chapter, unless the context clearly requires otherwise: "Business" means any corporation, partnership, individual, sole proprietorship, joint stock company, joint venture,...
• 103d-104.5 Agricultural Products Subject to This Chapter
  . The following agricultural products shall be subject to this chapter: (1) Fresh meats and produce; and (2) Animals and plants. Except for the exemptions...
• 103d-105 Public Access to Procurement Information.
  Government records relating to procurement shall be available to the public as provided in chapter 92F. Part I of chapter 92 shall not apply...
• 103d-106 Penalties.
  (a) Any person who intentionally violates this chapter or any rules adopted pursuant to this chapter shall be guilty of a misdemeanor and shall...
• 103d-107 Compliance Audit Unit; Establishment and Purpose.
  There is established a compliance audit unit within the office of the auditor. The purpose of this unit shall be to: (1) Periodically review...
• 103d-108 Compliance Audit Unit; Duties and Responsibilities.
  The compliance audit unit shall: (1) Review and assess applicable innovations in procurement methods or processes in other governmental jurisdictions or as described in...
• 103d-109 Compliance Audit Unit; Government Officers and Employees to Cooperate.
  The officers and employees of the State and of each county shall cooperate with this unit and furnish to them such information related to procurement...
• 103d-110 Education and Training.
  (a) The department of human resources development, either alone or in cooperation with any governmental body, including the department of labor and industrial relations,...
• 103d-111 Applicability of Chapter 103.
  Any provisions of chapter 103 not inconsistent with this chapter shall apply to the procurement of all goods, services, and construction under this chapter. [L...

PART II. PROCUREMENT ORGANIZATION

• 103d-201 Creation and Membership of the Procurement Policy Board.
  (a) There is hereby created an autonomous state procurement policy board. The policy board shall be assigned, for administrative purposes only, to the department...
• 103d-202 Authority and Duties of the Policy Board.
  Except as otherwise provided in this chapter, the policy board shall have the authority and responsibility to adopt rules, consistent with this chapter, governing...
• 103d-203 Chief Procurement Officers.
  (a) The chief procurement officer for each of the following state entities shall be: (1) The judiciary--the administrative director of the courts; (2) The...
• 103d-204 Establishment of the State Procurement Office; Administrator.
  (a) There shall be a state procurement office, placed for administrative purposes only, within the department of accounting and general services, which shall be...
• 103d-205 Authority and Duties of the Chief Procurement Officer.
  (a) For their respective jurisdictions and unless otherwise specifically provided in this chapter, each chief procurement officer shall serve as the central procurement officer...
• 103d-206 Additional Duties of the Administrator of the Procurement Office.
  In addition to the duties referred to in section 103D-205, the administrator shall: (1) Perform periodic review of the procurement practices of all governmental bodies;...
• 103d-207 Centralization of Procurement Authority.
  Except as otherwise provided in sections 103D-208, 103D-209, and 103D-210, all rights, powers, duties, and authority relating to the procurement of goods, services, and...
• 103d-208 Delegation of Authority by the Chief Procurement Officer.
  Subject to the rules of the policy board, each chief procurement officer may delegate any authority or duty conferred upon the chief procurement officer...
• 103d-209 Authority to Contract for Certain Services.
  Except as provided in section 28-8.3 with respect to agencies of the State of Hawaii, any governmental body of this State may act as...
• 103d-210 Repealed.
  L 1994, c 186, §25.
• 103d-211 Procurement Rules.
  (a) The procurement policy board shall adopt all rules necessary to carry out the purposes of this chapter and to implement its provisions in accordance...
• 103d-212 Collection of Data Concerning Public Procurement.
  The chief procurement officer and the heads of all purchasing agencies shall cooperate in the preparation of statistical data concerning the procurement, usage, and...
• 103d-213 Procurement Advisory Groups.
  (a) The chief procurement officer may appoint advisory groups to assist in the development of specifications or procurement in specific areas, and any other matters...
• 103d-214 Repealed.
  L 1995, c 178, §15. Note L 1997, c 352, §23 purports to amend this section.

PART III. SOURCE SELECTION AND CONTRACT FORMATION

• 103d-301 Methods of Source Selection.
  Unless otherwise authorized by law, all contracts shall be awarded pursuant to the following sections, as applicable: (1) Section 103D-302 (Competitive sealed bids); (2)...
• 103d-302 Competitive Sealed Bidding.
  (a) Contracts shall be awarded by competitive sealed bidding except as otherwise provided in section 103D-301. Awards of contracts by competitive sealed bidding may...
• 103d-303 Competitive Sealed Proposals.
  (a) Competitive sealed proposals may be used to procure goods, services, or construction that are either not practicable or not advantageous to the State to...
• 103d-303.5 Pre-Bid Conference.
  (a) At least fifteen days prior to submission of bids pursuant to section 103D-302 for a construction or design-build project with a total estimated contract...
• 103d-304 Procurement of Professional Services.
  (a) Professional services shall be procured in accordance with sections 103D-302, 103D-303, 103D-305, 103D-306, or 103D-307, or this section; provided that design professional services...
• 103d-305 Small Purchases; Prohibition Against Parceling.
  (a) Procurements of less than $100,000 for goods or services, or $250,000 for construction shall be made in accordance with procedures set forth in...
• 103d-306 Sole Source Procurement.
  (a) A contract may be awarded for goods, services, or construction without competition when the head of a purchasing agency determines in writing that...
• 103d-307 Emergency Procurements.
  (a) The head of a purchasing agency may obtain a good, service, or construction essential to meet an emergency by means other than specified...
• 103d-308 Cancellation of Invitations for Bids or Requests for Proposals.
  An invitation for bids, a request for proposals, or other solicitation may be canceled, or any or all bids or proposals may be rejected...
• 103d-309 Contract Not Binding Unless Funds Available.
  (a) Contracts awarded pursuant to section 103D-302, 103D-303, or 103D-306, shall neither be binding nor have any force and effect of law unless the...
• 103d-310 Responsibility of Offerors.
  (a) Unless the policy board, by rules, specifies otherwise, before submitting an offer, a prospective offeror, not less than ten calendar days prior to...
• 103d-311 Prequalification of Suppliers.
  (a) The policy board may adopt rules to prequalify prospective suppliers for particular types of goods, services, and construction or to limit a solicitation...
• 103d-312 Cost or Pricing Data.
  (a) A contractor, except as provided in subsection (c), shall submit cost or pricing data and shall certify that, to the best of the contractor's...
• 103d-313 Types of Contracts.
  (a) Subject to the limitations of this section, any type of contract that will promote the State's best interests may be used. (b) Cost-reimbursement...
• 103d-314 Approval of Accounting System.
  Except with respect to firm fixed-price contracts, no contract shall be used unless it has been determined in writing by the chief procurement officer,...
• 103d-315 Multi-Term Contracts.
  (a) Unless otherwise provided by law, a contract for goods or services may be entered into for any period of time deemed to be...
• 103d-316 Right to Inspect Plant.
  The State, at reasonable times, may inspect the part of the plant or place of business of a contractor or any subcontractor that is...
• 103d-317 Right to Audit Records.
  (a) The purchasing agency, at reasonable times and places, may audit the books and records of any person who has submitted cost or pricing...
• 103d-318 Finality of Determinations
  . The determinations required by sections 103D-302(g), 103D-303(a), 103D-303(g), 103D-306, 103D-307, 103D-310, 103D-312(c), 103D-313, and 103D-314 shall be final and conclusive unless they are clearly...
• 103d-319 Reporting of Anticompetitive Practices.
  When for any reason collusion or other anticompetitive practices are suspected among any bidders or offerors, a notice of the relevant facts shall be...
• 103d-320 Retention of Procurement Records.
  All procurement records shall be retained and disposed of in accordance with chapter 94 and records retention guidelines and schedules approved by the comptroller....
• 103d-321 Repealed.
  L 2001, c 43, §1.
• 103d-322 Multiple Awards.
  The policy board may adopt rules authorizing the use and prescribing the manner in which goods, services, or construction may be procured through multiple...
• 103d-323 Bid Security.
  (a) Unless the policy board determines otherwise by rules, bid security shall be required only for construction contracts to be awarded pursuant to sections...
• 103d-324 Contract Performance and Payment Bonds.
  (a) Unless the policy board determines otherwise by rules, the following bonds or security shall be delivered to the purchasing agency and shall become...
• 103d-325 Bond Forms and Copies.
  (a) The policy board shall specify the form of the bonds required by this chapter by procurement directive. (b) Any person may request and...
• 103d-326 Fiscal Responsibility.
  Every contract modification, change order, or contract price adjustment under a contract shall be subject to prior written certification by the appropriate fiscal officer for...
• 103d-327 Safety and Health Programs for Construction.
  Contracts awarded for construction in excess of $100,000 shall comply with section 396-18. [L 1995, c 199, §1]
• 103d-328 Tax Clearances; Setoff for Due and Unpaid Taxes.
  (a) Unless the director of taxation determines that waiver of the Internal Revenue Service tax clearance requirement is necessary to expedite or facilitate the procurement...

PART IV. SPECIFICATIONS

• 103d-401 Duties of the Policy Board.
  The policy board shall adopt rules governing the preparation, maintenance, and content of specifications for goods, services, and construction required by the State. [L...
• 103d-402 Duties of the Chief Procurement Officer.
  The chief procurement officer shall prepare, issue, revise, maintain, and monitor the use of specifications for goods, services, and construction required by the State. [L...
• 103d-403 Exempted Items.
  Specifications for goods, services, or construction items procured under section 103D-209, or those exempted pursuant to section 103D-210, may be prepared by a purchasing...
• 103d-404 Relationship With Using Agencies.
  The chief procurement officer shall obtain expert advice and assistance from personnel of using agencies in the development of specifications and may delegate in...
• 103d-405 Maximum Practicable Competition.
  (a) All specifications shall seek to promote overall economy for the purposes intended and encourage competition in satisfying the State's needs, and shall not be...
• 103d-406 Specifications Prepared by Architects and Engineers.
  The requirements of this part regarding the purposes and nonrestrictiveness of specifications shall apply to all specifications, including, but not limited to, those prepared...
• 103d-407 Construction Projects, Roadway Materials; Recycled Glass Content Requirements.
  (a) When purchasing roadway materials or other high-value, end-use applications for public projects, state and county agencies may purchase materials with minimum recycled glass...
• 103d-408 Hawaiian Plants; Use in Public Landscaping.
  [Section effective June 30, 2016. For section effective until June 29, 2016, see below] (a) Subject to exceptions as established under subsection (d), and...
• 103d-409 Provisions for Pollution Control.
  All contracts shall make provisions for control of pollution when encountered in the performance of the contract. [L 1999, c 149, pt of §2]
• 103d-410 Energy Efficiency Through Life-Cycle Costing.
  (a) The procurement practices of the State shall include energy efficient standards and policies, including life-cycle costing. (b) In implementing life-cycle costing, the purchasing...
• 103d-411 Value Engineering Clauses.
  The State shall insert clauses providing for value engineering incentives in all public works contracts for amounts in excess of $250,000. The clauses shall...
• 103d-412 Light-Duty Motor Vehicle Requirements.
  (a) The procurement policy for all agencies purchasing or leasing light-duty motor vehicles shall be to reduce dependence on petroleum for transportation energy. (b)...

PART V. MODIFICATION AND TERMINATION OF CONTRACTS

• 103d-501 Contract Clauses and Their Administration.
  (a) The policy board shall adopt rules requiring the inclusion of contract clauses providing for adjustments in prices, time of performance, or other contract provisions,...

PART VI. COST PRINCIPLES

• 103d-601 Cost Principles Rules Required.
  The policy board shall adopt rules setting forth cost principles which shall be used to determine the allowability of incurred costs for the purpose...

PART VII. LEGAL AND CONTRACTUAL REMEDIES

• 103d-701 Authority to Resolve Protested Solicitations and Awards.
  (a) Any actual or prospective bidder, offeror, or contractor who is aggrieved in connection with the solicitation or award of a contract may protest to...
• 103d-701.5 Procurement Statistics.
  The state procurement office shall keep statistics on solicitations and awards protested under section 103D-701 for the purpose of improving procurement procedures. The statistics...
• 103d-702 Authority to Debar or Suspend.
  (a) After reasonable notice to the person involved and reasonable opportunity for that person to be heard, the chief procurement officer, after consultation with...
• 103d-703 Authority to Resolve Contract and Breach of Contract Controversies.
  (a) This section applies to controversies between a governmental body and a contractor which arise under, or by virtue of, a contract between them,...
• 103d-703.5 Settlement of Default by Contractor.
  Upon default of a contractor, the purchasing agency may accept moneys in satisfaction of the contractor's obligation on a contract whether the moneys are...
• 103d-704 Exclusivity of Remedies.
  The procedures and remedies provided for in this part, and the rules adopted by the policy board, shall be the exclusive means available for...
• 103d-705 Solicitations or Awards in Violation of Law.
  The provisions of section 103D-706 and section 103D-707 apply where it is determined by the chief procurement officer or a designee under section 103D-701...
• 103d-706 Remedies Prior to an Award.
  If prior to award it is determined that a solicitation or proposed award of a contract is in violation of law, then the solicitation...
• 103d-707 Remedies After an Award.
  If after an award it is determined that a solicitation or award of a contract is in violation of law, then: (1) If the...
• 103d-708 Interest.
  Interest on amounts ultimately determined to be due to a contractor or the governmental body shall be payable at the statutory rate applicable to...
• 103d-709 Administrative Proceedings for Review.
  (a) The several hearings officers appointed by the director of the department of commerce and consumer affairs pursuant to section 26-9(f) shall have jurisdiction...
• 103d-710 Judicial Review.
  (a) Only parties to proceedings under section 103D-709 who are aggrieved by a final decision of a hearings officer under that section may apply...
• 103d-711 Judicial Action.
  (a) Only parties to the contract aggrieved by a decision issued pursuant to section 103D-703 by a state chief procurement officer or a designee...
• 103d-712 Time Limitations on Actions.
  (a) Requests for administrative review under section 103D-709 shall be made directly to the office of administrative hearings of the department of commerce and...
• 103d-713 Defense of a Governmental Body.
  (a) No contract of less than $1,000,000 that is entered into on or after July 1, 2007, by any governmental body, and is exclusively for...

PART VIII. GOVERNMENTAL RELATIONS AND
COOPERATIVE PURCHASING

• 103d-801 Definitions.
  Part heading amended by L 1997, c 352, §13. §103D-801 Definitions. As used in this part, unless the context requires otherwise: "Cooperative purchasing" means...
• 103d-802 Cooperative Purchasing Authorized.
  Part heading amended by L 1997, c 352, §13. §103D-802 Cooperative purchasing authorized. A public procurement unit may either participate in, sponsor, conduct, or...
• 103d-803 Sale, Acquisition, or Use of Goods by a Public Procurement Unit.
  Part heading amended by L 1997, c 352, §13. §103D-803 Sale, acquisition, or use of goods by a public procurement unit. Any public procurement...
• 103d-804 Cooperative Use of Goods or Services.
  Part heading amended by L 1997, c 352, §13. §103D-804 Cooperative use of goods or services. A public procurement unit may enter into an...
• 103d-805 Joint Use of Facilities.
  Part heading amended by L 1997, c 352, §13. §103D-805 Joint use of facilities. Any public procurement unit may enter into agreements for the...
• 103d-806 Supply of Personnel, Information, and Technical Services.
  Part heading amended by L 1997, c 352, §13. §103D-806 Supply of personnel, information, and technical services. (a) Any public procurement unit is authorized,...
• 103d-807 Use of Payments Received by a Supplying Public Procurement Unit.
  Part heading amended by L 1997, c 352, §13. §103D-807 Use of payments received by a supplying public procurement unit. All payments from any...
• 103d-808 Public Procurement Units in Compliance With Requirements of This Chapter.
  Part heading amended by L 1997, c 352, §13. §103D-808 Public procurement units in compliance with requirements of this chapter. Where the public procurement...
• 103d-809 Review of Procurement Requirements.
  Part heading amended by L 1997, c 352, §13. [§103D-809] Review of procurement requirements. The chief procurement officer may collect information concerning the type,...
• 103d-810 Contract Controversies.
  Part heading amended by L 1997, c 352, §13. [§103D-810] Contract controversies. Under a cooperative purchasing agreement, controversies arising between an administering public procurement...

PART IX. ASSISTANCE TO SMALL BUSINESSES

• 103d-901 Definitions.
  As used in this part, unless the context clearly requires otherwise: "Geographic bidding" includes the use of a competitive solicitation which provides for one...
• 103d-902 Small Business Assistance.
  The policy board shall adopt rules to assist small businesses in learning how to do business with the State. [L Sp 1993, c 8,...
• 103d-903 Duties of the Chief Procurement Officer.
  (a) The chief procurement officer may coordinate the implementation of this part with any similar programs offered by the department of business, economic development,...
• 103d-904 Geographic Bidding.
  The chief procurement officer may utilize geographic bidding in providing goods, services, and construction to best meet the needs of the State. [L Sp 1993,...
• 103d-905 Repealed.
  L 1994, c 186, §26.
• 103d-906 Preference for Small Businesses; Set-Asides; Use As Subcontractors.
  The policy board shall adopt rules to promote the growth and development of small businesses that shall include: (1) Set-asides for small businesses in...

PART X. PREFERENCES

• 103d-1001 Definitions.
  As used in this part, unless the context clearly requires otherwise: "Direct labor" means all work required for preparation, processing, or packing of goods...
• 103d-1001.5 Application of This Part.
  The preferences in this part shall apply, when applicable, to procurements made pursuant to section 103D-302, or 103D-303, or both. [L 1997, c 352,...
• 103d-1002 Hawaii Products.
  (a) A purchasing agency shall review all specifications in a bid or proposal for purchase of Hawaii products where these products are available. (b)...
• 103d-1002.5 Failure to Adequately Verify, Deliver, or Supply Hawaii Products
  . If the administrator or procurement officer who has awarded a contract under section 103D-1002, finds that in the performance of that contract there has...
• 103d-1003 Printing, Binding, and Stationery Work.
  (a) All bids submitted for a printing, binding, or stationery section 103D-302 contract in which all work will be performed in-state, including all preparatory...
• 103d-1004 Reciprocity.
  (a) To ensure fair and open competition for Hawaii businesses engaged in contracting with other states, the chief procurement officer may impose a reciprocal...
• 103d-1005 Recycled Products.
  (a) To encourage the use of recycled products, contracts shall be awarded to the lowest responsible and responsive bidders, with preference being given to...
• 103d-1006 Software Development Businesses.
  (a) In any expenditure of public funds for software development, the use of Hawaii software development businesses shall be preferred. Where a package bid...
• 103d-1007 Repealed.
  L 2003, c 52, §8.
• 103d-1008 Taxpayer Preference.
  For evaluation purposes, the bidder's tax-exempt price shall be increased by the applicable retail rate of general excise tax and the applicable use tax....
• 103d-1009 Preference for Qualified Community Rehabilitation Programs.
  When a governmental body contracts for services, a five per cent preference shall be given to services to be provided by nonprofit corporations or...
• 103d-1010 Purchases From Qualified Community Rehabilitation Programs.
  (a) Any governmental body, without advertising or calling for bids, may purchase goods or services provided by qualified community rehabilitation programs serving persons with...
• 103d-1011 Qualified Community Rehabilitation Program; Proposal to Provide Goods and Services.
  A qualified community rehabilitation program shall be allowed to sell only goods or services, also to include building custodial and grounds maintenance services, to...
• 103d-1012 Biofuel Preference.
  (a) Notwithstanding any other law to the contrary, contracts for the purchase of diesel fuel or boiler fuel shall be awarded to the lowest...

PART XI. FEDERAL AND STATE SURPLUS PROPERTY

• 103d-1101 Definitions.
  As used in this part, unless the context clearly requires otherwise: "Personal property" means all tangible goods, including equipment, materials and supplies, except land,...
• 103d-1102 State Agency for Surplus Property.
  The state procurement office shall be the state agency for federal and state surplus personal property unless otherwise specified in this chapter or rules...
• 103d-1103 Authority and Duties.
  The state procurement office may: (1) Acquire from the United States under and in conformance with section 203(j) of the Federal Property and Administration...
• 103d-1104 Delegation of Authority; Bond.
  The administrator of the state procurement office may: (1) Delegate to any employee any power and authority deemed reasonable and proper for the effective...
• 103d-1105 Authorized Donee Representatives.
  Any other law to the contrary notwithstanding, the governing board, or in case there is none, the chief procurement officer or the head of a...
• 103d-1106 Transfer Charges.
  Any charges or fees assessed by the surplus property director shall be limited to those reasonably related to the costs of care and handling...
• 103d-1107 Revolving Fund.
  There shall be in the state treasury a surplus federal property revolving fund, which shall be maintained in an amount adequate to defray the...

PART XII. INVENTORY MANAGEMENT; STATE AND COUNTY PROPERTY

• 103d-1201 Definitions.
  As used in this part, unless the context clearly requires otherwise: "Administrator of the state procurement office" means the chief procurement officer for the...
• 103d-1202 Rules.
  The policy board shall adopt rules in accordance with chapter 91 governing: (1) The management of properties during their entire life cycle; (2) The...
• 103d-1203 Administrator of the State Procurement Office; Duties.
  The administrator of the state procurement office shall: (1) Perform a periodic review of the inventory management system of all governmental bodies; (2) Enforce...
• 103d-1204 Others' Responsibilities.
  The head of the department, or the head of any board, commission, agency, bureau, or office of the State shall be responsible for the...
• 103d-1205 Internal Control.
  The head of the department, or the head of any board, commission, agency, bureau, or office of the State and any county having the...
• 103d-1206 Annual Inventory Reporting by State Officers.
  The chief procurement officers for their respective jurisdictions, the administrative heads of the executive departments, and all other persons, offices, and boards of a...
• 103d-1207 Annual Inventory Reporting by County Mayors to Administrator of the State Procurement Office.
  Each county mayor, before September 16 of each year, shall prepare and file with the administrator of the state procurement office an annual inventory...
• 103d-1208 Annual Inventory Reporting by County Officers to Council.
  Every officer, head of department, agent, employee, and other person in the employ of the county, having in their custody or under their control...
• 103d-1209 Authority to Withhold Salary.
  The administrator of the state procurement office and the director of finance of each county shall ascertain if inventories have been filed as required...
• 103d-1210 Penalty; Jurisdiction.
  Any officer, member of a public board, assessor, or other person who fails to perform any of the duties imposed upon the person by...
• 103d-1211 Forms for Annual Inventory Return.
  The administrator of the state procurement office shall prepare and print a general form upon which the inventories required under sections 103D-1206 and 103D-1207...
• 103d-1212 Duties of the State and County.
  (a) The administrator of the state procurement office shall examine each inventory return filed as required by sections 103D-1206 and 103D-1207 and the director...
• 103d-1213 Sale of Produce, Etc.; Disposition of Proceeds; Exceptions.
  Except as otherwise provided by law or rules adopted by the governor, the sale by any governmental office, department, board, establishment, institution, or agency...
• 103d-1214 Proceeds.
  Except as otherwise provided in section 103D-1213 or by any other law, all moneys received from the sale of any state property by any...

PART XIII. PREFERENCE FOR OIL PRODUCTS
WITH GREATER RECYCLED CONTENT

• 103d-1301 Short Title.
  This part shall be referred to as the "Recycled Oil Act". [L 1999, c 53, pt of §2]
• 103d-1302 Definitions.
  As used in this part: "Industrial oil" means any compressor, turbine, or bearing oil, hydraulic oil, metal working oil or refrigeration oil. "Lubricating oil"...
• 103d-1303 Preference for Oil Products With Greater Recycled Content.
  Notwithstanding any law to the contrary, any procurement officer that purchases lubricating oil and industrial oil under this [part] shall purchase the oil from...
• 103d-1304 Affirmative Program for Procuring Oils With Recycled Content.
  (a) Each chief procurement officer shall establish and maintain an affirmative program for procuring oils containing the maximum content of recycled oil. (b) An...

Last modified: October 27, 2016