+ All Categories
Home > Documents > Procurement Training State and County Purchasing...

Procurement Training State and County Purchasing...

Date post: 11-Oct-2020
Category:
Upload: others
View: 0 times
Download: 0 times
Share this document with a friend
63
State Procurement Office Exemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13) 1 Procurement Training for State and County Purchasing Personnel Procurements Exempt from HRS Chapter 103D HRS Chapter 103D HRS Section 103D-102 HAR Chapter 3-120
Transcript
Page 1: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 1

Procurement Trainingfor

State and County Purchasing Personnel

Procurements Exempt fromHRS Chapter 103DHRS Chapter 103D

HRS Section 103D-102

HAR Chapter 3-120

Page 2: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 2

Page 2

Page 3: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 3

HRS §103D Hawaii Public Procurement Code

HRS §103D-102 Application of this chapter. (a) This chapter shall apply toall procurement contracts made by governmental bodies whether theconsideration for the contract is cash, revenues, realizations, receipts, orearnings, any of which the State receives or is owed; in-kind benefits; orforbearance; provided that nothing in this chapter or rules adoptedhereunder shall prevent any governmental body from complying with theterms and conditions of any other grant, gift, bequest, or cooperativeterms and conditions of any other grant, gift, bequest, or cooperativeagreement.

§103D-104 Definitions."Procurement" means buying, purchasing, renting, leasing, or otherwise

acquiring any good, service, or construction. The term also includes allfunctions that pertain to the obtaining of any good, service, orconstruction, including description of requirements, selection andsolicitation of sources, preparation and award of contracts, and all phasesof contract administration.

Page 4: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 4

§103D-104 Definitions.

• “Goods” mean all property, including

but not limited to equipment , equipmentleases, materials, supplies, printing,insurance, and processes, includinginsurance, and processes, includingcomputer systems and software,excluding land or a permanent interestin land, leases of real property, andoffice rentals.

Page 5: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 5

Methods of ProcurementMethod Bases for Use Bases of Award

CompetitiveSealed Bids

Always used unless it is not feasible or practicable. Lowest responsive, responsiblebid.

SmallPurchases

Purchases of smaller quantities for goods andservices of less than $100,000 and construction lessthan $250,000.

Lowest responsive, responsiblequotation.

CompetitiveSealedProposals

Competitive sealed bidding is not practicable; priceis not the most critical factor.

Based on RFP evaluation criteria.

Multi-step Bid Used when pre-qualification of offerors necessarybefore considering price.

Lowest bidder of qualifiedofferors.before considering price. offerors.

Sole Source Only one source for the required good, service, orconstruction.

Approved single source at agreedprices.

Emergency Used to respond the needs that are immediate andserious that are a threat to life, public health,welfare, or safety.

Lowest responsive and/orresponsible offeror.

ProfessionalServices

Professional services as defined in rules andstatutes.

Qualified respondent that meetsdetermined criteria; prices areagreed to.

Request forInterest (ForFederal Grants)

Used prior to applying for the Federal grants wheretime is limited or economic situations require a“quick” selection process.

Criteria determined in RFI.

Page 6: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 6

What is the definition of a procurementexempt from HRS Chapter 103D?

• A situation where a procurement of a good,service, or construction by competitive meansis either not practicable or not advantageousto the State.

“Practicable”- feasible, useful, usable

“Advantageous”- to be a benefit to; to imposeupon

Page 7: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 7

Where are Procurements Exempt FromChapter 103D, HRS, currently listed?

• HRS Section 103D-102

• Exhibit A, titled “Procurements Exempt FromHRS Chapter 103D, HAR Chapter 3-120;

• For the Executive Branch, CPO approved• For the Executive Branch, CPO approvedSPO Form 7 on the SPO website; Eachrespective Chief Procurement Officerapproves procurement exemptions for goods,services, and construction for their ownjurisdictions.

Page 8: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 8

What kinds of ProcurementsExemptions are listed in HRS Section

103D-102?

1. Grants or subsidies as those terms aredefined in section 42F-101, made by theState in accordance with standards providedby law as required by article VII, section 4, ofthe State Constitution; or by the countiespursuant to their respective charters orordinances;

2. To make payments to or on behalf of publicofficers and employees for salaries, fringebenefits, professional fees, orreimbursements;

Page 9: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 9

Continued HRS 103D-102

3. Obligations that the State is required to payby law, including paying fees, permanentsettlements, subsidies, or other claims,making refunds, and returning funds held bythe State as Trustee, custodian, or bailee;the State as Trustee, custodian, or bailee;

4. Entitlement programs, including publicassistance, unemployment, and workers’compensation programs, established by stateor federal law;

Page 10: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 10

Continued HRS 103D-102

5. Dues and fees of organizations of which theState or its officers and employees aremembers, including the National Associationof Governors, the National Association ofState and County Governments, and theState and County Governments, and theMulti-State Tax Commission;

6. For the deposit, investment, or safekeeping,including expenses related to their deposit,investment, or safekeeping;

7. Awards to governmental bodies of the State

Page 11: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 11

Continued HRS 103D-102

8. Loans, under loan programs administered bya governmental body;

9. Contracts awarded in accordance withChapter 103F, HRS;

10. Goods, services, or construction from agovernmental body other than the Universityof Hawaii Bookstores, from the federalgovernment, or from another state or itspolitical subdivision;

Page 12: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 12

Continued HRS 103D-102

11. Services of expert witnesses for potential andactual litigation of legal matters involving theState, its agencies, and its officers andemployees, including administrative quasi-judicial proceedings;judicial proceedings;

12. Works of art for museum or public display;

13. Research and reference materials includingbooks, maps, periodicals, and pamphlets,which are published in print, video, audio,magnetic, or electronic form;

Page 13: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 13

Continued HRS 103D-102

14. Meats and foodstuffs for the KalaupapaSettlement;

15. Opponents for athletic contests;

16. Utility services whose rates or prices are16. Utility services whose rates or prices arefixed by regulatory processes or agencies;

17. Performances, including entertainment,speeches, and cultural and artisticpresentations;

18. Goods and services for commercial resale bythe State;

Page 14: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 14

Continued HRS 103D-102

19. Services of printers, rating agencies, supportfacilities, fiscal and paying agents, andregistrars for the issuance and sale of theState’s or Counties’ bonds;

20. Services of attorneys employed or retained to20. Services of attorneys employed or retained toadvise, represent, or provide any other legalservice to the State or any of its agencies, onmatters arising under laws of another state orforeign country, or in an action brought inanother state, federal or foreign jurisdiction,when substantially all legal services areexpected to be performed outside this state;

Page 15: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 15

Continued HRS 103D-102

21. Financing agreements under chapter37D,HRS; and

22. Trade agreements, including the UruguayRound General Agreement on Tariffs andTrade (GATT) which requires certain non-Trade (GATT) which requires certain non-construction and non-software developmentprocurements by the comptroller to beconducted in accordance with its terms.

Page 16: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 16

Where are Procurements Exempt FromChapter 103D, HRS, currently listed?

• HRS Section 103D-102

• Exhibit A, titled “Procurements Exempt FromHRS Chapter 103D, HAR Chapter 3-120;HRS Chapter 103D, HAR Chapter 3-120;

• For the Executive Branch, CPO approved SPO Form7 on the SPO website; Each respective ChiefProcurement Officer approves procurementexemptions for goods, services, and construction fortheir own jurisdictions.

Page 17: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 17

Who determines the ProcurementsExemptions listed on Exhibit A in HAR

Chapter 3-120?

• The Procurement Policy Board (PPB)approves goods and services that are exemptfrom HRS Chapter 103D, because they havedetermined that although such goods ordetermined that although such goods orservices may be available from multipleservices, their procurement by competitivemeans would be either not practicable or notadvantageous to the State.

• CPOs may on an annual basis request thatadditional exemptions be added to Exhibit A.

Page 18: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 18

HAR Chapter 3-120

• The Procurement Policy Board shall reviewthe exhibit annually for amendments.

• When using any of the exemptions on ExhibitA, the purchasing agencies shall cite on theA, the purchasing agencies shall cite on thepurchase order or the contract, the authoritywaiver as “Exempt from Chapter 103D, HRS,pursuant to section 3-120-4(b) (cite exemptionnumber from exhibit), HAR.

Page 19: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 19

What kinds of ProcurementsExemptions are listed on Exhibit A in

HAR Chapter 3-120?

1. Research, reference, and educationalmaterials, including books, maps,periodicals, and pamphlets, which arepublished or available in print, video, audio,magnetic, or electronic forms, includingmagnetic, or electronic forms, includingweb-based databases;

2. Services of printers, rating agencies,support facility providers, fiscal and payingagents, and registrars for the issuance andsale of the State’s or counties’ bonds;

Page 20: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 20

HAR Chapter 3-120 Exhibit A Continued

3. Services of lecturers, speakers, trainers,facilitators and scriptwriters, when theprovider possess specialized trainingmethods, techniques, or expertise in thesubject matter;

Page 21: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 21

HAR Chapter 3-120 Exhibit A Continued

4. Services of legal counsel, guardian ad litem,psychiatrists, psychologists, receivers andmasters, when, required by court order;

5. Fresh meats and produce; (No longer, Act175)

6. Insurance to include insurance brokerservices;

7. Animals and plants; (No longer, Act 175)

8. New or used items which are advantageousand available on short notice through anauction bankruptcy, foreclosure, etc.

Page 22: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 22

HAR Chapter 3-120 Exhibit A Continued

9. Food and fodder for animals;

10. Facility costs for conferences, meetings,and training sessions;

11. Advertisements in specialized publications,such as in ethnic or foreign languagepublications, trade publications, orpublications, trade publications, orprofessional publications;

12. Arbitrators and mediator services;

13. Interpreter services

Page 23: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 23

HAR Chapter 3-120 Exhibit A Continued

14. Procurement of repair services whendismantling is required to assess the extentof repairs;

15. Burial services consisting of mortuarycrematory, cemetery, and other essentialcrematory, cemetery, and other essentialservices for deceased indigent persons orunclaimed corpses;

16. Radio and television airtime when selectionof station is based on the targeted audience(i.e., ethnic or age group, gender, etc)

Page 24: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 24

HAR Chapter 3-120 Exhibit A Continued

17. Subscription costs and registration orworkshop fees for conferences or training;and

18. Court Reporter Services.

Page 25: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 25

Where are Procurements Exempt FromChapter 103D, HRS, currently listed?

HRS Section 103D-102

Exhibit A, titled “Procurements Exempt FromHRS Chapter 103D, HAR Chapter 3-120;

For the Executive Branch, CPO approved SPOFor the Executive Branch, CPO approved SPOForm 7 on the SPO website; Each respectiveChief Procurement Officer approvesprocurement exemptions for goods, services,and construction for their own jurisdictions.

Page 26: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 26

When is a CPO approved ExemptionFrom HRS Chapter 103D, necessary?

• When HOPA determines that a situationexists for a good, service or construction thatis not listed in HRS Section 103D-102, andHAR Chapter 3-120, and that procurement byHAR Chapter 3-120, and that procurement bycompetitive means is either not practicable ornot advantageous to the State.

Page 27: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 27

How does an Agency obtain a CPOApproved Exemption from Chapter

103D, HRS?

• A request for CPO approval on SPO Form 7must be downloaded from the SPO websiteand be submitted to the CPO.and be submitted to the CPO.

• The CPO must post the submitted SPO Form7 on the designated public website for 7calendar days before taking any approvalaction.

Page 28: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 28

• Objections to the request must be written andreceived by the CPO within 7 calendar days ofthe initial posting on the website.

• Written objections received by the deadline willbe considered by the CPO.

Continued: SPO Form 7 :

be considered by the CPO.

• The CPO may approve the request after the 7th

day from the initial posting on the website.

• Disapproval action on a request can be doneanytime and returned to the agency.

Page 29: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 29

When is an amendment to a CPOapproved Exemption from Chapter 103D,

HRS, necessary and how is it done?

• Amendment to a contract or purchase orderthat would change the original scope of work,including increased cost, may be done onlyincluding increased cost, may be done onlywith the approval of the CPO on an SPOForm 7B.

• SPO Form 7B has the same posting andapproval process as SPO Form 7.

Page 30: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 30

Example of Exemption Request SPO-007

Previously the agency got a waiver to hire outside counsel tonegotiate and drafting of the Option Agreement for various parcels ofland located at Kapolei. The vendor was hired through professionalservices method. The contract has expired but now the leasee isrequesting to amend the option agreement and also revise the draftgeneral lease document. The agency believes it more advantageousto use a different legal counsel since their fees are too high and feltto use a different legal counsel since their fees are too high and feltthey were at times non- responsive. Agency wants to hire a new legalcounsel ( A &W) one that they have experience working with,knowledge of HHC ACT and HRS Chapter 171 and would need littletime to get up to speed and renegotiate now.

Page 31: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 31

Example of Exemption Request

Previously the agency got a waiver to hire outside counsel to negotiate anddrafting of the Option Agreement for various parcels of land located at Kapolei.The vendor was hired through professional services method. The contract hasexpired but now the leasee is requesting to amend the option agreement andalso revise the draft general lease document. The agency believes it moreadvantageous to use a different legal counsel since their fees are too high andfelt they were at times non- responsive. Agency wants to hire a new legalcounsel ( A &W) one that they have experience working with, knowledge ofHHC ACT and HRS Chapter 171 and would need little time to get up to speedHHC ACT and HRS Chapter 171 and would need little time to get up to speedand renegotiate now.

Request has been withdrawn by the department.

The explanations given in the request and emails did not support the need toexempt the hiring of outside legal counsel rather it is based on conveniencebetween the agency and the selected vendor. No lost revenue projectionswere submitted with the request, nor the estimated time savings realized ifthe selection of the outside legal counsel is exempted.

Page 32: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 32

Example of Exemptions

The Patient Protection and Affordable Act, signed by PresidentObama on March 23, 2010 effective June 1, 2010 containedprovisions to benefits Early Retirees (55-65). The new lawprovides $5 billion to assist employers with providing healthcoverage for their retirees. Applications for this program areexpected to be available June 1, 2010 or shortly after and arecritical that the information is accurate and complete. Applicationscritical that the information is accurate and complete. Applicationswill be processed in the order it is received. Agency is requestingthat the current benefits consultant ( AON) be contracted with tosubmit the applications for EUFT. According to the EUTF,applications that are submitted early have the best chance ofreceiving funds and the later it is submitted has the least chance.It is estimated that EUTF may be eligible to receive $15 million forplan year 2010.

Page 33: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 33

Example of Exemptions

The Patient Protection and Affordable Act, signed by President Obama on March 23,2010 effective June 1, 2010 contained provisions to benefits Early Retirees (55-65).The new law provides $5 billion to assist employers with providing health coveragefor their retirees. Applications for this program are expected to be available June 1,2010 or shortly after and are critical that the information is accurate and complete.Applications will be processed in the order it is received. Agency is requesting thatthe current benefits consultant ( AON) be contracted with to submit the applicationsfor EUFT. According to the EUTF, applications that are submitted early have thebest chance of receiving funds and the later it is submitted has the least chance. It isestimated that EUTF may be eligible to receive $15 million for plan year 2010.

Approved. Meeting the 6/1/2010 application date or shortly after is criticalin the process of receiving funding from this program. AON hasdeveloped over time a complete understanding and knowledge of EUTF’soperational procedures, information systems analysts and all insurancecarriers and plan administrators, and has the expertise and experience tocomplete and successfully file the application, any other contractor wouldhave to go through a learning curve.

Page 34: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 34

Samples of Exemptions

An agency is requesting an exemption to purchase Abbott teststrips through Abbott Laboratories Inc., Diagnostics Division.In June 2005, the agency decided to standardize their glucosemeters statewide and decided on Abbott Laboratories, AbbottPrecision Xtra Meters without doing a solicitation. The vendordecided to supply the meters for free. These meters can onlyread their brand name test strips. Abbott Labs will not competewith their distributors and the agency would pay double thewith their distributors and the agency would pay double thelocal prices for the same test strips. Agency has beenpurchasing the test strips from Abbott Laboratories since theiragreement.

Page 35: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 35

Example of Exemptions

An agency is requesting an exemption to purchase Abbott test strips throughAbbott Laboratories Inc., Diagnostics Division. In June 2005, the agencydecided to standardize their glucose meters statewide and decided on AbbottLaboratories, Abbott Precision Xtra Meters without doing a solicitation. Thevendor decided to supply the meters for free. These meters can only read theirbrand name test strips. Abbott Labs will not compete with their distributors andthe agency would pay double the local prices for the same test strips. Agencyhas been purchasing the test strips from Abbott Laboratories since their

Disapproved. Agency should have put out a solicitation for the purchase ofthe meters and the cost of the test strips. The agency is instructed to re-submit as a procurement violation (SPO-16) explaining the reason(s) fornot following the procurement procedures in selecting Abbott Laboratoriesglucose meters.

agreement.

Page 36: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 36

Example of Exemptions

Landscape maintenance, specifically grass-cutting within the KakaakoWaterfront Park and two other parks. Agency was notified that thecontractor has filed for bankruptcy , lost its landscaping contractor’s licenseand no longer maintains liability liability insurance. The agency terminatedthe contract , and requested help from other agencies, but non could assistwith the maintenance schedule. To avoid increase vector infestation, theexisting grass cutting schedule needs to be maintained ( 10 day period).Work to begin on August 30, 2010. Typically it takes 2 to 3 months toWork to begin on August 30, 2010. Typically it takes 2 to 3 months toexecute a contract. Due to the short time table, the agency did not utilizeHePS, eight contractors were contacted , and two submitted quotes. Lowestresponsible bidder $61,600 est.

Page 37: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 37

Example of Exemptions

Service: Landscape maintenance, specifically grass-cutting within the KakaakoWaterfront Park and two other parks. Agency was notified that the contractor hasfiled for bankruptcy , lost its landscaping contractor’s license and no longermaintains liability liability insurance. The agency terminated the contract , andrequested help from other agencies, but non could assist with the maintenanceschedule. To avoid increase vector infestation, the existing grass cutting scheduleneeds to be maintained ( 10 day period). Work to begin on August 30, 2010.Typically it takes 2 to 3 months to execute a contract. Due to the short time table,the agency did not utilize HePS, eight contractors were contacted , and twosubmitted quotes. Lowest responsible bidder $61,600 est.

Request approved, until the execution of the next contract. The contract that wascancelled included also, trash pickup and tree trimming which the exemptionrequest were submitted separately. All three exemption requests could havebeen incorporated in one request. The last exemption approved, tree trimming,needed to be RUSHED, due to the safety hazards of coconuts falling from treesneeding trimming.

Page 38: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 38

Example of Exemption

Monthly advertising space (posters) in free standing three (3) sidedKiosks in high volume and geographic specific shopping centers andmalls throughout the state. The vendor ( Hawaii Malls, Inc. ) is the solerepresentative for advertising in shopping malls Kiosks throughout thestate. There are no other vendors for this service. The programmanager investigated the various sites effectiveness in reaching themanager investigated the various sites effectiveness in reaching thelargest number of the target consumers. Contract is negotiated withvendor.

Page 39: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 39

Example of Exemption

Monthly advertising space (posters) in free standing three (3) sidedKiosks in high volume and geographic specific shopping centers andmalls throughout the state. The Vendor is the sole representative foradvertising in shopping malls Kiosks throughout the state. There are noother vendors for this service. The program manager investigated thevarious sites effectiveness in reaching the largest number of the targetconsumers. Contract is negotiated with vendor.

Request approved. The department has determined that targetedaudiences can be reached with the greatest impact, by advertising onaudiences can be reached with the greatest impact, by advertising onfree standing kiosks in specific shopping malls and centers throughoutthe state. It would not be advantageous to the state to solicit for therequired service because while there are other advertising companies,Hawaii Malls Inc. is the sole representative for shopping mall kiosksacross the state.

Page 40: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 40

Example of Exemption

Title sponsorship for a Hawaii Venture Capital Association (HVCA)Think Tech community event on 5/24/12 at the Plaza Club to discussand raise awareness on broadband. Sponsorship includes, speakerposition at the event, posting of HBI video of the thinktechhawaii.comwebsite, posting of HBI videos on thinktechhawaii TV spots. If theagency were to do promote broadband initiatives alone, they wouldnot have as wide of a reach, would not have sufficient staff, etc. andwould cost more.would cost more.

Page 41: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 41

Example of Exemption

Title sponsorship for a Hawaii Venture Capital Association (HVCA) ThinkTech community event on 5/24/12 at the Plaza Club to discuss and raiseawareness on broadband. Sponsorship includes, speaker position at theevent, posting of HBI video o the thinktechhawaii.com website, posting of HBIvideos on thinktechhawaii TV spots. If the agency were to promotebroadband initiatives alone, they would not have a wide a reach, would nothave sufficient staff, etc. and would cost more.have sufficient staff, etc. and would cost more.

Request approved. However, the original request for a overall blanketexemption for event sponsorships were disapproved. The agency meet withthe SPO to discuss a hybrid procedure based on an RFP and ProfessionalServices process. The modified RFP will accept applications for sponsorshipsfor a period of 12 months and multiple awards will be determined based onqualifications, meeting the agencies objectives, date and cost of the event,etc. This particular request for sponsorship fell in before the modifiedRFP excepted applications.

Page 42: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 42

How is procurement transparencyachieved in this process?

• SPO Forms 7 and 7B are posted on the SPOpublic website prior to and after CPO action.

• Documents submitted supporting theexemptions, objections and responses to theexemptions, objections and responses to therequest, if any, shall be kept with therespective exemption file and be publicinformation after CPO action unless otherwiseallowed under chapter 92F, HRS.

Page 43: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 43

What must be posted ?

Page 44: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 44

Procurement Circular No 2010-01Posting Procurement Awards, Notices and Solicitations (PANS)

For those that post notices and awards recommend SPO Workshop 141

Page 45: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 45

To view status of yourexemption request

To view other exemption awards

Page 46: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 46

Page 47: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 47

What is the status ofmy SPO Form 7 ?

Page 48: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 48

http://hawaii.gov/spo2/exempt103d/

Page 49: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 49

What Contract Forms to use

• Agencies shall use the AG’s StandardContract Form, AG-002 Rev. 07/24/06, titled,Contract for Goods and Services: Exempt;Small Purchase; Sole Source; orSmall Purchase; Sole Source; orEmergency), that can be found at:

Page 50: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 50

PROCUREMENT EXEMPTIONS THAT NEED STATEPROCUREMENT OFFICE (SPO) ADMINISTRATOR

APPROVAL

• SUBMIT FORM SPO-07 TO SPO via Email to:[email protected]

• Or send two copies to SPO

The State Procurement OfficeKalanimoku Bldg.1151 Punchbowl St.Honolulu HI 96813PO Box 119Honolulu HI 96810-0119

Page 51: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 51

Forms SPO -007 and 007B

Page 52: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 52

SPO-007

1. Description of goods, services or construction2. Name of Vendor3. Price4. Term of Contract5. Prior Exemption Ref. No.

Page 53: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 53

6. Explanation describing how procurement by competitive means is either not practicable or not Advantageous to the State.7. Details of the process or procedures to be followed in selecting the vendor to ensure maximum fair and open competition as practicable:

Note: The Procurement Exemption No. for this request is 12-109K

Page 54: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 54

Page 55: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 55

SPO-007B

Page 56: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 56

Page 57: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 57

Page 58: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 58

STATE PROCUREMENT OFFICEPROGRAMS EXEMPT FROM CHAPTER 103D, HRS

DEPARTMENTS AND AGENCIES:

• GOVERNOR

Civil Defense and Emergency Act

§128-10 Other powers. “(10) ...Chapter 103D,...shall not apply to any civil defense or

other emergency functions...”

• Labor Disputes; Stevedoring Industry

§382-3 Government operations. “After the issuance of a proclamation pursuant to

section 382-2 and during the emergency thereby proclaimed... The governor may makesection 382-2 and during the emergency thereby proclaimed... The governor may make

contracts without regard to chapter 103D....”

• BUDGET AND FINANCE

§37D-2 Financing agreements. “(5) The department shall not be subject to chapter

103D and any and all other requirements of law for competitive bidding for financing

agreements.”

Page 59: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 59

STATE PROCUREMENT OFFICEPROGRAMS EXEMPT FROM CHAPTER 103D, HRS

DEPARTMENTS AND AGENCIES

• BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM

Hawaii Tourism Authority

§201B-12 Exemption of authority from taxation and Hawaii public procurement

code. “(b) The authority shall not be subject to chapter 103D and any and all other

requirements of law for competitive bidding for project agreements, construction

contracts, lease and sublease agreements, or other contracts unless a project

agreement with respect to a project otherwise shall require.”

§ 210D-13 Grants Under Community-based Economic Development Program

• COMMERCE AND CONSUMER AFFAIRS

Hawaii Hurricane Relief Fund

§431P-16 Establishment of trust finds. “(a)... Disbursements from the trust funds

shall not be subject to chapter 103D and shall be made in accordance with procedures

adopted by the board.”

• EDUCATION

§302B-7 Charter school local school boards; powers and duties. “Local school

boards shall be exempt from chapter 103D, but shall develop internal policies and

procedures for the procurement of goods, services, and construction, consistent with the

goals of public accountability ad public procurement practices.”

Page 60: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 60

STATE PROCUREMENT OFFICEPROGRAMS EXEMPT FROM CHAPTER 103D, HRS

DEPARTMENTS AND AGENCIES

• HEALTH

§103D-102(c) Notwithstanding subsection (a), this chapter shall not apply to contracts

made by any regional system board of the Hawaii health systems corporation.

• UNIVERSITY OF HAWAII

Research Corporation of the University of Hawaii

§304A-3005 Research corporation excepted from certain state laws. “(2) Chapter

103D, relating to advertising for bids and purchases to be made in Hawaii whenever103D, relating to advertising for bids and purchases to be made in Hawaii whenever

public moneys are expended.”

• ALL POLITICAL SUBDIVISIONS

Civil Defense and Emergency Act

§128-13 Power and authority of local organizations. “(3) ….Chapter 103D, … shall

not apply to any civil defense functions of and to the extent that the mayor finds that the

provisions, in whole or in part, impede or tend to impede the expeditious discharge of the

functions, or that compliance therewith is impracticable due to existing conditions.”

Page 61: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 61

•Hawaii Public Housing Authority§356D-Development of property; partnership or development agreement..

“For development of public housing projects pursuant to subsection (a), except as providedby federal law or regulation, the authority shall not be subject to chapter 103 and 103D…provided that the authority shall develop internal policies and procedures for theprocurement of goods, services, and construction, consistent with the goals of publicaccountability and public procurement practices.”

Act 164, SLH 2012 (HB2529, HD1, SD1Effective July 1, 2012.

Land and Natural Resources ( Kaho’olawe Island ReserveCommission (KIRC)Commission (KIRC)

§ (Assigned by the Legislative Reference Bureau) Procurement exemption “ Contractsmade by the commission for the procurement of food or fuel products necessary to carry outthe purposes of this chapter shall be exempt from Chapter 103D; provided that thecommission shall continue to comply with any reporting requirements under chapter 103Dor rules adopted thereunder for contracts entered into pursuant to this section.”Act 159, SLH 2010Effective date: 7/1/2010Act 244 SLH 2013 removed expiration date.

Research Corporation of the University of Hawaii (RCUH).Modify the procurement exemption for certain construction contracts.Act 288, SLH 2013 (SB1388)

Page 62: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 62

SUMMARY

Page 63: Procurement Training State and County Purchasing Personnelspo.hawaii.gov/wp-content/uploads/2013/11/SPO125exempt103dRef.pdfExemptions from HRS Chapter 103D (SPO125) SPO (Rev.12/13)

State Procurement OfficeExemptions from HRS Chapter 103D (SPO125)

SPO (Rev.12/13) 63

QUESTIONS??

Kevin Takaesu 586-0568

Or

[email protected]@hawaii.gov


Recommended