UPDATED JANUARY 2021 2 - Hawaii County, HI Research ...
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2 UPDATED JANUARY 2021
TABLE OF CONTENTS
SECTION TITLE PAGE
1.0 INTRODUCTION 3
2.0 DEFINITIONS 3
3.0 AUTHORITY 5
4.0 ETHICAL PROCUREMENT 5
5.0 PURCHASING DOLLAR THRESHOLDS 5
6.0 PURCHASING METHODS 6
6.1 Small Purchase 6
6.2 Invitation for Bids 8
6.3 Request for Proposals 9
6.4 Sole Source 10
6.5 Emergency Purchase 11
6.6 Professional Services 12
6.7 Procurements Exempt from Competition 13
7.0 PRICE TERM AGREEMENTS 14
8.0 COOPERATIVE PURCHASING / 14
VENDOR LIST CONTRACTS
9.0 PROCUREMENT TIMELINE 15
10.0 ELECTRONIC PROCUREMENT 16
11.0 PAYMENT TYPES 16
12.0 PROCUREMENT VIOLATION 18
13.0 GENERAL TERMS AND CONDITIONS 19
14.0 REQUISITIONS 19
15.0 INVOICE PAYMENTS 25
16.0 INSURANCE 30
17.0 CIVIL SERVICE REQUIREMENT 31
18.0 VENDOR PERFORMANCE 31
19.0 PROCUREMENT DELEGATION 32
20.0 GRANTS 32
21.0 STANDARDIZATION COMMITTEE 33
22.0 TRAINING 33
23.0 DEALING WITH SALESPEOPLE 34
24.0 PURCHASING DIVISION CONTACT 34
INFORMATION
25.0 EXHIBITS 36
1. Procurements Approved for Sole Source
(HAR 2-122)
2. Request for Sole Source Form
3. Cost and Pricing Analysis Information
4. Request for Emergency Procurement
5. Negotiated Procurement of Professional Services Checklist
(Contracts Greater than $25,000.00)
16. Informal Negotiated Procurement of
Professional Services Checklist (Contracts
Less than $25,000.00)
7. Professional Services Data Form (F-111P)
8. List of Exempt Procurements (103D-102)
9. List of Exempt Procurements (HAR 3-122-81)
10. Request for Exemption Form
11. Contract Routing Form
12. Change Order and Supplemental Agreement
Routing Form
13. Finance Department Memorandum No. 16-08 Purchase of Alcohol
21.0 INTRODUCTION
The Purchasing Manual has been created to provide general information and guidance to
County of Hawai`i departments and agencies that purchase goods and services. The
Purchasing Division, the central purchasing authority of the County, is responsible for
ensuring compliance with the purchasing requirements contained within this manual,
procuring goods and services, and providing procurement assistance to departments and
agencies as needed.
1.1 In addition to this Purchasing Manual, purchasing information and forms can be found on
the Purchasing Division’s internet page and Finance Department’s intranet page. Along
with this information, please contact the Purchasing Division directly at
purchasing@hawaiicounty.gov, 808-961-8231, or by using the individual’s contact
information at the end of this manual.
1.2 The purchasing rules and regulations contained within may not govern every purchasing
situation which may arise. In the event a specific purpose is not covered by these
guidelines, contact the Purchasing Agent to discuss your particular situation.
2.0 DEFINITIONS
2.1 "Award" means the written notification of the County's acceptance of a bid or proposal, or
the presentation of a contract to the selected offeror.
2.2 ''Brand name or equal specification'' means a specification which uses one or more
manufacturer's names or catalogue numbers to describe the standard of quality,
performance, and other characteristics needed to meet requirements, and which provides
for the submission of equivalent products.
2.3 "Brand name specification'' means a specification limited to one or more items by
manufacturers' names or catalogue numbers, commonly referred to as a restrictive
specification.
2.4 "Business" means any corporation, partnership, individual, sole proprietorship, joint stock
company, joint venture, or any other private legal entity.
2.5 “County” means the County of Hawai`i, including its departments and agencies.
2.6 "Construction" means the process of building, altering, repairing, improving, or
demolishing any public structure or building, or other public improvements of any kind to
any public real property. The term includes the routine operation, routine repair, or routine
maintenance of existing structures, buildings, or real property.
2.7 "Contract" means all types of agreements, regardless of what they may be called, for the
3procurement or disposal of goods or services, or for construction.
2.8 "Contractor" means any person having a contract with the County.
2.9 ''Design specifications'' means the dimensional and other physical requirements of the
item being purchased, how a product is to be fabricated or constructed.
2.10 "Employee" means an individual drawing a salary from the County, whether elected or not,
and any non-compensated individual performing services for any governmental body.
2.11 "Goods" means all property, including but not limited to equipment, equipment leases,
materials, supplies, printing, insurance, and processes, including computer systems and
software, excluding land or a permanent interest in land, leases of real property, and office
rentals.
2.12 "Grant" means the furnishing of assistance, whether financial or otherwise, to any person
to support a program authorized by law. The term does not include an award whose
primary purpose is to procure an end product, whether in the form of goods, services, or
construction; a contract resulting from such an award is not a grant but a procurement
contract.
2.13 "Invitation for bids" means all documents, whether attached or incorporated by reference,
utilized for soliciting bids.
2.14 "Pcard" means a purchasing card or charge card, with predetermined limitations, used by
government agencies in place of cash or purchase orders for the purchase of goods,
services, or construction.
2.15 ''Performance specifications'' means the functional or performance requirements of the
item, what a product does and how well it performs.
2.16 "Professional services" means those services within the scope of the practice of
architecture, landscape architecture, professional engineering, land surveying, real
property appraisal, law, medicine, accounting, dentistry, public finance bond underwriting,
public finance bond investment banking, or any other practice defined as professional by
the laws of this State or the professional and scientific occupation series contained in the
United States Office of Personnel Management's Qualifications Standards Handbook.
2.17 ''Quotation'' means a statement of price, terms of sale, and description of goods, services,
or construction offered by a prospective seller to a prospective purchaser, usually for
purchases pursuant to section 103D-305, HRS.
2.18 "Request for proposals" means all documents, whether attached or incorporated by
reference, utilized for soliciting proposals.
42.19 "Services" means the furnishing of labor, time, or effort by a contractor, not involving the
delivery of a specific end product other than reports which are merely incidental to the
required performance.
2.20 "Specifications" means any description of the physical or functional characteristics, or of
the nature of a good, service, or construction item. The term includes descriptions of any
requirement for inspecting, testing, or preparing a good, service, or construction item for
delivery.
3.0 AUTHORITY
Purchases of goods or services as described with this Purchasing Manual are written in
accordance with Hawai`i Revised Statute (HRS) 103D and Hawai`i Administrative Rules
(HAR) 3-120 through 3-132. In addition, the Purchasing Manual references and follows
requirements from the Hawai`i Administrative Rules, County of Hawai`i County Code, and
Finance Director Rules. The Purchasing Manual meets all requirements relating to
procurement within the State of Hawai`i, and in some instances is more stringent than the
State requirement.
4.0 ETHICAL PROCUREMENT
All purchases made by County of Hawai`i employees shall be in accordance with County
Code Chapter 2 Article 15 as well as the State Procurement Code’s Procurement Code of
Ethics, HAR 3-131-1.02. As stewards of public money, it is imperative all purchases are
made in accordance with applicable rules and procedures, are transparent, and are the
best value for the County.
4.1 A good rule of thumb is when making a purchase, consider how it would look on the front
page of the newspaper, or how you would feel explaining it to a close family member or
friend. If you are unsure or uncomfortable, contact your supervisor or the Purchasing
Division for guidance.
4.2 Effective July 1, 2016, officers and employees of the County, or a business in which an
officer or employee or their immediate family has a controlling interest, must obtain an
opinion from the Ethics Board that there is no conflict of interest resulting from their position
with the County. If the opinion is not obtained prior to the procurement of goods or services
through the Invitation for Bids or Request for Proposals methods, a copy of the letter or
petition requesting review can be submitted with the procurement documents. (Ordinance
No. 15-103)
5.0 PURCHASING DOLLAR THRESHOLDS
Below is a chart outlining the various purchasing methods based on the amount of the
anticipated purchase(s). Departments and agencies are to consider the KNOWN
estimated amount/quantity of the purchased item(s) for the entire fiscal year when
5determining the appropriate purchasing method. A detailed explanation of each of the
purchasing methods is contained within this manual.
Amount Purchasing Method
$0-$1,000.00 Small Purchase - Departments to Procure, Purchasing
Division can assist as needed.
$1,000.01-$50,000.00 Small Purchase - Purchasing Division to procure.
$50,000.01 and greater Formal Procurement - Purchasing Division to procure.
6.0 PURCHASING METHODS
The six purchasing methods the County of Hawai`i can use to procure goods and services
are:
6.1 Small Purchase
Purchases of goods and services up to $50,000.00 are to be procured using the small
purchase method. Tax and shipping costs shall be included in the amount to determine
the correct purchasing method.
6.1.1 Purchases between $0-$1,000.00 may be processed by the department or agency. Those
making the purchase are requested to shop around for the best available price by obtaining
competitive written or verbal quotes. Quotes received do not have to be submitted when
processing payment. Payment is to be made by invoice or pCard and processed through
the Eden invoice system.
Exceptions
1. Printing:
All printing of forms, letterheads, envelopes and business cards shall be procured
by either using the applicable price term agreement or if not on a price term
agreement, submitting a requisition. The Purchasing Division can pre-approve
departments and agencies to acquire printing less than $1,000.00 for printing
projects of a time sensitive nature.
2. Purchase of an item listed on a current Price Term Agreement from another
vendor, unless prior approval from the Purchasing Division is given.
3. Purchases in violation of the County’s Ethic’s Ordinance (County Code Chapter 2
Article 15) or State Procurement Code’s Procurement Code of Ethics (HAR 3-131-
1.02) shall not be made.
4. Tree trimming shall be procured by the Purchasing Division at any amount.
65. Departments and agencies are to contact the Automotive Division to obtain a list
of approved bodywork vendors. Based upon the cost, competitive quotes are
required in accordance with established purchasing policies stated within this
manual.
6. Alcohol shall not be purchased in accordance with Finance Director Memorandum
No. 16-08, a copy of which can be found as Exhibit 13 at the end of this manual.
6.1.2 Purchases between $1,000.01 - $50,000.00 shall be conducted by the Purchasing
Division, unless delegated by the Chief Procurement Officer or otherwise permitted within
this Purchasing Manual. Purchases conducted by the Purchasing Division shall be made
using the County’s e-procurement system, unless determined otherwise by the Purchasing
Agent as permitted in Section 6.1.3 below. Request for quotes will be posted for a
minimum of three (3) days, or less if approved by the Purchasing Agent.
6.1.3 If no quotes were received using the e-procurement system, or the Purchasing Agent
agrees the use of the e-procurement system is not practical, written quotes shall be
solicited. To ensure reasonable competition, all known vendors shall be solicited for the
purchase, with a minimum of three (3) quotes received, or written documentation if less
than three (3) quotes are received. All documentation shall be kept in the procurement
file.
6.1.4 To request the purchase of a good or service by the Purchasing Division, the department
or agency shall submit a requisition in the Eden system, attaching detailed specifications
of the goods or services to be obtained. Types of specifications may include design,
performance, brand name or equal, etc.
6.1.5 Small purchasing procedures require the lowest quote that meets the quote’s
requirements be selected, unless sufficient justification exists to accept the next lowest
quote, and so forth as necessary. Such justification as delivery time, warranty, quality of
product, etc. may be considered in the selection, which SHALL be documented in the file
as being in the best interest of the County of Hawai`i.
6.1.6 Air Travel: Departments or agencies are required to obtain, with or without the assistance
of a travel agent, three (3) written quotes for the purchase of airfare greater than
$1,000.00. The three (3) written quotes must be obtained within a three (3) day period
and not only from the same airline.
1 For example, airline quotes from United, Delta and Hawaiian or website such as
Travelocity, Expedia and Priceline would be acceptable, while contacting Hawaiian
Airlines directly for a Hawaiian flight at 9:00 am, Hawaiian flight at 11:00 am and
Hawaiian flight at 1:00 pm would not be acceptable.
72 Although quotes for purchases under $1,000.00 are not required to be submitted
when processing payment, those making the purchase are requested to solicit
competitive written, verbal or internet quotes to obtain the best available pricing.
3 If an employee takes personal travel before, after or during the official County
business trip, the employee must obtain a fourth quote (personal travel) and pay
the difference between the lowest official County business trip cost and the
personal travel costs. The fourth quote must also be obtained within the three (3)
day period when the other quotes were obtained. Copies of the written quotes
must be scanned and attached to the Eden invoice for payment.
4 For purchases that requires HCE compliance, the Purchasing Division will maintain
a list of compliant travel agents for use, which can be found on the intranet.
6.1.7 If the purchase of a good or service is unique, not typically within the scope of work /
services provided by the department or agency, a Request for Adjustments and
Exceptions (RAE) is required to be approved and attached to the Eden requisition or
invoice. An example would include food or refreshments for employees / volunteers, or
travel costs for a non-county employee. RAE forms can be obtained from the Finance
Department intranet page, and are to be submitted to the Finance Department
Administration for approval. Approved RAE’s greater than $1,000.00 shall require written
quotes or bids in accordance with established purchasing policies. RAE approval
numbers, not a copy of the form, are to be included on the Eden requisition or invoice for
processing.
6.1.8 Purchases made in the amount of $2,500.00 or greater require proof of compliance with
103D-310(c), HRS. The purchaser shall ensure compliance by verifying compliant status
at time of award by printing the Hawaii Compliance Express (HCE) certificate and keeping
a copy in the procurement file. Awards shall not be made until the vendor’s HCE certificate
is shown as compliant.
REFERENCE: HRS103D-305, HAR 3-122 Subchapter 8
6.2 Invitation for Bids (IFB) “Competitive Sealed Bids”
Purchases greater than $50,000.00 shall be solicited competitively using the Invitation for
Bid (or competitive sealed bid) process by the Purchasing Division, unless otherwise
specified within the Purchasing Manual. This includes price term agreements whereby the
County estimates its annual need for routine goods or services and obtains pricing, but
does not commit to any purchase amount.
6.2.1 Invitation for Bids shall be processed using the County’s e-procurement system, unless
determined otherwise by the Purchasing Agent. In addition, the invitation for bids will be
posted in accordance with all State of Hawai`i requirements.
86.2.2 To request the purchase of a good or service, the department or agency shall submit a
requisition in the Eden system, attaching detailed specifications of the goods or services
to be obtained. Types of specifications may include design, performance, brand name or
equal, etc. For price term agreements, a requisition is not submitted, but the Purchasing
Division is contacted directly with the required information.
6.2.3 Purchases made in the amount of $2,500.00 or greater require proof of compliance with
103D-310(c), HRS. The purchaser shall ensure compliance by verifying compliant status
at time of award by printing the Hawaii Compliance Express (HCE) certificate and keeping
a copy in the procurement file. Awards shall not be made until the vendor’s HCE certificate
is shown as compliant.
REFERENCE: HRS103D-302, HAR 3-122 Subchapter 5
6.3 Request for Proposals (RFP) “Competitive Sealed Proposals”
The request for proposals (or competitive sealed proposals) process is used when a
proposal is requested based on performance criteria, in the absence of detailed
specifications, or price is not the primary factor in its selection. The Chief Procurement
Officer must make the written determination that competitive sealed bidding is not
practicable or advantageous prior to conducting the request for proposals.
6.3.1 The request for proposals process is administered by the Purchasing Division with the
assistance of an evaluation committee selected by the department. Proposals will be
evaluated and awarded based on criteria listed in the request for proposals document.
6.3.2 Request for proposals shall be processed using the County’s e-procurement system,
unless determined otherwise by the Purchasing Agent. In addition, the request for
proposals will be posted in accordance with all State of Hawai`i requirements.
6.3.3 To initiate a request for proposals, a requisition shall be submitted in the Eden system, by
the department or agency for the estimated amount, along with attaching the draft request
for proposals document or scope of work.
6.3.4 Purchases made in the amount of $2,500.00 or greater require proof of compliance with
103D-310(c), HRS. The purchaser shall ensure compliance by verifying compliant status
at time of award by printing the Hawaii Compliance Express (HCE) certificate and keeping
a copy in the procurement file. Awards shall not be made until the vendor’s HCE certificate
is shown as compliant.
REFERENCE: HRS103D-303, HAR 3-122 Subchapter 6
6.4 Sole Source
In instances where a good or service is only available from one source, the department or
agencies can use the sole source purchasing method, contingent on the following:
96.4.1 Pre-Approved:
The Hawaii Administrative Rules contain a list of pre-approved sole source procurements
that can be used in the purchase of goods or services. This list can be found in the exhibit
section of this manual, or the Finance Department intranet page. If a pre-approved sole
source is used, prior Purchasing Division approval can be obtained, but is not required.
The following language is required to be included on either the Eden invoice or requisition;
“Approved for Sole Source Pursuant to Section 3-122-81(cite sole source number), Hawaii
Administrative Rules.”
6.4.2 Non Pre-Approved:
If the requested sole source is less than $5,000.00, the department or agency can write a
memo pursuant to Finance Director Rule 4.8(a) requesting approval, addressed and sent
to the Purchasing Agent. The memo should list what is being purchased, the vendor, the
amount of the purchase, explanation of why it can only be procured from one source, and
a determination the price the County is paying is not more than what others would pay.
Documentation from the manufacturer verifying the item or service as a sole source should
be attached. A sample memo is available on the Finance Department intranet page.
6.4.3 If the requested sole source is more than $5,000.00, but less than $25,000.00, the
department or agency can write a memo pursuant to Finance Director Rule 4.8(b)
requesting approval, addressed to the Finance Director and routed first to the Purchasing
Agent. The memo is to address what is being purchased, the vendor, the amount of the
purchase, explanation of why it can only be procured from one source, and a determination
the price the County is paying is not more than what others would pay. Documentation
from the manufacturer verifying the item or service as a sole source should be attached.
A sample memo is available on the Finance Department intranet page.
6.4.4 If the requested sole source exceeds $25,000.00, the department or agency shall submit
a formal Request for Sole Source, completed, to the Purchasing Agent for posting. In
addition, if the requested sole source exceeds $100,000.00, the department or agency
shall submit a complete Cost and Pricing Analysis with the request for sole source
document. Both documents can be found as an exhibit in this manual or on the Finance
Department’s intranet page. After posting the document for the required seven (7) days,
the Chief Procurement Officer can approve the request, and return it to the department or
agency for further processing.
6.4.5 Purchases made in the amount of $2,500.00 or greater require proof of compliance with
103D-310(c), HRS. The purchaser shall ensure compliance by verifying compliant status
at time of award by printing the Hawaii Compliance Express (HCE) certificate and keeping
a copy in the procurement file. Awards shall not be made until the vendor’s HCE certificate
is shown as compliant.
REFERENCE: HRS103D-306, HAR 3-122 Subchapter 9
6.5 Emergency Purchase
106.5.1 An emergency procurement is a good, service or construction which is essential to meet
an emergency when all the following conditions are met:
1. A situation of unusual or compelling urgency creates a threat to life, public health,
welfare, or safety by reason of major natural disaster, epidemic, riot, fire, or such
other reason as may be determined; and
2. The emergency condition generates an immediate and serious need for goods,
services, or construction that cannot be met through normal procurement methods
and the County would be seriously injured if not allowed to obtain the goods,
services or construction; and
3. Without the needed goods, services or construction, the continued functioning of
the County, the preservation or protection of irreplaceable property, or the health
and safety of any person would be seriously threatened.
6.5.2 The emergency procurement must be as a result of a situation that was unforeseen or
unanticipated and may only be used to purchase the immediate need for the emergency
and not subsequent non-emergency requirements.
6.5.3 A potential loss of funds is not a sufficient reason for an emergency procurement.
6.5.4 Once it is determined an emergency procurement exists, the department shall seek such
competition as practical. Unless otherwise instructed, the department shall obtain a
minimum of three written (3) quotes for the purchase to be considered as an allowable
Federal reimbursement, which shall include a written scope of work. If no quotes were
obtained, the department shall provide adequate justification why quotes could not be
obtained.
6.5.5 During the County’s regular business hours of operation, the department shall obtain
approval to make an emergency purchase from the Purchasing Agent if the expected
purchase amount exceeds $5,000.00, and from the Finance Director if the amount
exceeds $25,000.00. If the emergency occurs after hours or on a weekend/holiday, the
department may, after seeking such competition as may be practical, obtain materials,
supplies, equipment or services directly from the most practical source and immediately
thereafter submit all required documentation for approval as necessary. A written
explanation of the emergency shall be submitted in addition to the other required
documentation for approval.
6.5.6 For each emergency procurement, department shall complete a “Request for Emergency
Procurement” form which can be found as an exhibit in this manual or on the Finance
Department intranet page. The approved form, along with all supporting documentation,
shall be submitted with all requests for payment relating to the emergency.
11REFERENCE: HRS103D-307, HAR 3-122 Subchapter 10
6.6 Professional Services
Departments are to use the professional services procurement process when obtaining
the services of professional engineers, architects, surveyors and landscape architects. In
addition, departments may use the professional service selection process, but are not
required to do so for: real property appraisal, law, accounting, public finance bond
underwriting, public bond investment banking, or any other practice defined as
professional by the laws of the State or the professional and scientific occupation services
contained in the United States Office of Personnel Management’s Qualifications Standards
Handbook.
6.6.1 Each May the Purchasing Division sends out to departments a notice for the annual
advertisement for providers of professional services. Those professional service providers
that return their information will be evaluated by the applicable department’s review
committee (minimum of 3 people) to determine if the provider is qualified to perform the
services. If so, the department will add the provider to a qualified provider list for the
upcoming fiscal year. Additional evaluations throughout the fiscal year may be held to
evaluate new providers as necessary.
6.6.2 When the need for the procurement of professional services arises, the department will
form a selection committee (minimum of three people) to review a minimum of no less than
three providers. The Professional Services procurement method cannot be used if
there are less than three providers in the requested category. The selection team
members must have adequate knowledge of the type of service to be selected, and if not
an employee of the County, complete the applicable affidavit form. Department or deputy
department heads are not to serve on the selection committee.
6.6.3 If the anticipated amount of the procurement is equal to or exceeds $25,000.00, or is for
the procurement of professional engineers, architects, surveyors and landscape
architects, the selection committee shall complete all forms and attachments for
documents referencing NEGOTIATED PROCUREMENT OF PROFESSIONAL
SERVICES CHECKLIST (Contracts greater than or equal to $25,000.00), a blank copy
which can be located as an exhibit in this manual or on the Finance Department’s intranet
page.
6.6.4 If the anticipated amount of the procurement is less than $25,000.00 the selection
committee is to complete all forms and attachments for documents referencing INFORMAL
NEGOTIATED PROCUREMENT OF PROFESSIONAL SERVICES CHECKLIST
(Contracts less than $25,000.00), a blank copy which can be located as an exhibit in this
manual or on the Finance Department’s intranet site. This form is not to be used for the
procurement of professional engineers, architects, surveyors and landscape architects at
any amount.
126.6.5 The completed forms as required in sections 6.6.3 or 6.6.4 must be approved and signed
by the department’s director. Once approved, the department can pay by invoice or submit
a requisition for services less than $25,000.00 (uploading the approved forms in Eden), or
include the approved forms, the contract routing form with department approvals, and the
contract to be routed for the Mayor’s signature for services greater than $50,000.00.
6.6.6 Professional services procurements that equal or exceed $5,000.00 are to be posted on
the County’s website within seven (7) days of contract award. Departments are to
complete the Professional Services Data Form (F-111P), which can be found as an exhibit
in this manual or on the Finance Department’s intranet page, and submit it with the
professional services procurement forms listed above.
6.6.7 Purchases made in the amount of $2,500.00 or greater require proof of compliance with
103D-310(c), HRS. The purchaser shall ensure compliance by verifying compliant status
at time of award by printing the Hawaii Compliance Express (HCE) certificate and keeping
a copy in the procurement file. Awards shall not be made until the vendor’s HCE certificate
is shown as compliant.
REFERENCE: HRS103D-304, HAR 3-122 Subchapter 7
6.7 Procurements Exempt from Competition
A procurement can be exempted from the State procurement code (HRS 103D) in a
situation where the procurement of a good, service, or construction by competitive means
is either not practical or not advantageous to the County. Exempted procurements do not
follow HRS Chapter 103D or its requirements.
6.7.1 There are a number of preapproved exemptions listed in HRS Chapter 103D-102 and HAR
Chapter 3-120-4, which can be found as an exhibit in this manual or on the State
Procurement Office (SPO) website. When using an applicable exemption, departments
are to list the following language on the contract routing form, requisition or invoice,
“Exempt from Chapter 103D, HRS, pursuant to Section 3-120-4(b)(cite exemption #),
Hawai’i Administrative Rules.” For example, if using Exemption #1, then state “Exempt
from Chapter 103D, HRS, pursuant to Section 3-120-4(b)(1), Hawaii Administrative Rules”.
6.7.2 Departments may request an exemption which has not been preapproved by the State
Procurement Code (HRS 103D) by submitting one of the following:
1. If the exemption request is between $1,000.00 and $5,000.00, the department can
submit a memo to the Purchasing Agent requesting the exemption in accordance
with Finance Director Rule 4.8(a); including what the purchase is for, why it cannot
be procured through the small purchase procurement process, and how they
ensured the price being paid is fair and reasonable. Approved exemptions will be
signed and returned to the department.
132. If the exemption request is between $5,000.01 and $25,000.00, the department
can submit a memo to the Finance Director through the Purchasing Agent,
requesting the exemption; including what the purchase is for, why it cannot be
procured through the small purchase procurement process, and how they ensured
the price being paid is fair and reasonable. Approved exemptions will be signed
and returned to the department.
3. If the exemption request is $25,000.01 or greater, the department can complete
and submit to the Purchasing Agent a signed Request for Exemption Form, a blank
copy which can be located as an exhibit in this manual or on the Finance
Department’s intranet page. Completed requests must be posted on the County’s
internet site for a period of not less than seven (7) days. Once posted for the
necessary time, the form is given to the Finance Director to sign and return to the
department.
REFERENCE: HRS103D-102, HAR 3-120-4
7.0 PRICE TERM AGREEMENTS
7.1 On behalf of County departments, the Purchasing Division annually processes IFBs and
RFQs for routine goods and services the departments will be purchasing. The price term
agreements, also known as indefinite quantity contracts, allow the County to aggregate its
purchases to obtain competitive pricing, along with having the purchasing work already
completed to allow the departments to obtain the goods and services expediently.
7.2 Price term agreements are generally completed annually following the dates of the fiscal
year. Current agreements can be accessed from the Finance Department’s Intranet page
or by contacting the Purchasing Division staff.
7.3 Departments interested in initiating new price term agreements should contact the
Purchasing Division no later than February preceding the fiscal year the Agreement is to
start.
8.0 COOPERATIVE PURCHASING / VENDOR LIST CONTRACTS
8.1 The State of Hawai`i State Procurement Office offers the County a number of purchasing
opportunities it can use to purchase goods and services through the use of cooperative
purchasing / vendor list contracts. Examples include multi-function copiers, computer
equipment and telecommunication services.
8.2 The majority of the cooperative purchasing contracts are solicited by State Procurement
Office staff, but there are a number that are from cooperative purchasing organizations,
such as NASPO ValuePoint (formally WSCA). Only cooperative purchasing agreements
14approved by the State Procurement Office can be used by the County. Departments can
check the State Procurement Office website, or contact the Purchasing Division, to inquire
if a particular cooperative agreement is available for use.
8.3 The County can participate in Cooperative Purchasing Agreements between the County
and other state or county contracts as long as the County is specified as a user or potential
user, and the purchasing/contract requirements are not less than what the County is
required to follow.
8.4 Cooperative Purchasing Agreements should be reviewed prior to soliciting for bids or
quotes, as an opportunity to combine purchasing power with other government institutions
to obtain better pricing for the County. Departments and Agencies interested in using
Cooperative Purchasing Agreements should contact the Purchasing Division for
assistance.
9.0 PROCUREMENT TIMELINE
9.1 It is necessary to provide the Purchasing Division adequate time to process a purchase
request for the goods and/or services your department requires. Departments are to use
the following guidelines when planning their purchase:
1. IFB / RFPs:
A minimum of three (3) months prior to the issuance of the contract execution /
notice to proceed. With complex service contracts, departments must provide for
adequate time for contractors to mobilize to be able to start providing the service.
Not providing enough time may result in decreased vendor responses / increased
costs and the awarded vendor not being prepared to begin as required.
2. RFQs:
A minimum of three (3) weeks prior to the issuance of a purchase order to the
vendor. RFQs greater than $50,000.00 in value will take longer as a contract will
need to be routed and signed by the Mayor.
3. Request for Exemptions / Sole Source Requests greater than $25,000.00: A
minimum of six (6) weeks prior to the issuance of the contract / notice to proceed.
9.2 The Purchasing Division will do its best to accommodate rush requests. Departments are
to contact the Purchasing Division prior to submitting a rush request to discuss the
procurement timeline.
9.3 The Purchasing Division distributes announcements throughout the year alerting
departments of upcoming procurement deadlines in accordance with fiscal year end.
Departments are to submit their requests in accordance with these deadline
announcements. If requests are submitted after the deadline, the Purchasing Division will
15do its best to complete the procurement within the time needed, but cannot guarantee its
completion before the fiscal year end deadline.
10.0 ELECTRONIC PROCUREMENT
10.1 The Purchasing Division uses Public Purchase, an e-procurement system to announce,
provide documents and collect responses for RFQs, IFBs and RFPs from vendors. Public
Purchase allows for greater access and accountability of the documents that are provided
to and submitted by vendors by allowing purchasing staff to track the distribution of
documents. A listing of IFBs, RFPs, and RFQs currently being advertised on Public
Purchase is available on the County’s website at
http://www.hawaiicounty.gov/financepurchasing/.
10.2 Vendors must register with Public Purchase to view, download, and upload their
responses. Registration can take up to two to three days, and only those vendors that
successfully register can access the documents. Please inform potential vendors of the
time it takes to access the documents for an upcoming procurement.
10.3 The Purchasing Division encourages receiving, filing, and distributing electronic
documents as a way to expedite the procurement process to its user departments and
vendors. User departments and agencies are encouraged to submit documents to the
Purchasing Division electronically via email or the Eden system. Electronic copies of
documents, including electronic signatures, shall be treated as originals in accordance
with HRS Sections 92-29, 92-30 and 489E-7.
10.4 The Small Purchase threshold for goods and services has been increased from
$25,000.00 to $50,000.00 as the County of Hawai’i has implemented an electronic
procurement system in accordance with HRS Section 103D-305(c).
11.0 PAYMENT TYPES
11.1 Once a contract has been awarded, PO issued or services performed by a contractor,
payment can be made by using one of the following payment types described below:
1. Invoice:
Payment for purchases within the department’s delegated authority, payment for
price term contracts, sole source and exempt purchases less than $25,000.00, and
others outlined in Section 15 can be made by direct payment using the invoice
payment method. Instructions on entering an invoice are included within this
Purchasing Manual.
2. Requisition / Purchase Order:
16Department and agencies are to submit a requisition in the Eden system to initiate
the purchase of goods and services by the Purchasing Division. Requisitions are
to be submitted in accordance with Section 14 of this Purchasing Manual. If the
purchase is less than $50,000.00, a purchase order can be processed and sent to
the contractor. Helpful hint – if a contractor is requesting their proposal to be
signed, suggest providing a purchase order as an alternative, specifying any terms
on the purchase order.
3. Contracts:
A contract shall be executed for all purchases of goods and services in excess of
$50,000.00 in accordance with Finance Director Rule 4.12. The Mayor, or his
authorized representative, are the only ones authorized to sign contracts for the
purchase of goods or services. Contracts for the Mayor’s signature shall be routed
in accordance with the Contract Routing Form, a copy which can be found as an
exhibit in this manual or on the Finance Department’s intranet page. In addition:
a. Contracts less than $1,000,000.00, including Price Term Agreements, are
not required to be notarized by the Contractor. County signatures are not
required to be notarized at any dollar amount.
b. Contracts less than $1,000,000.00 shall be considered originals, including
signature pages, in accordance with HRS Sections 92-29, 92-30 and
489E7, unless specifically determined in writing by the Finance Director
otherwise. This shall include contract and procurement documents that
have been electronically scanned, faxed or copied contract or procurement
documents, including the use of electronic signature programs such as
CoSign. Departments are responsible for ensuring scanned, faxed or
copied documents are legible.
4. pCard:
With their departmental approval, employees can obtain a pCard to make
purchases within their department’s delegated purchasing authority for County
related expenses. Using the pCard is a time-saving and efficient purchasing
method, along with the County receiving a rebate based on the total amount spent.
Employees that use their pCard must be aware of all purchasing restrictions listed
in Section 6.1 Small Purchases. Pcard purchases must be made by the employee
listed on the card and delivery is to be made to a County of Hawai’i building
address. More information can be found in the Purchasing Card Manual, a copy
which can be found on the Finance Department’s intranet page.
12.0 PROCUREMENT VIOLATION
12.1 If purchasing goods or services is part of an employee’s job duties, it is imperative they
review and understand the County’s purchasing policies and procedures. If an individual
17or department violates these policies or procedures, the Purchasing Division can assist in
providing information or training, so the violation does not occur again.
1. Departments are not to parcel a purchase, that being the intentional division of a
purchase to avoid the proper procurement procedure (i.e. RFQ, IFB, etc.).
Furthermore, for items or services purchased regularly throughout the fiscal year,
departments are to take into consideration the estimated yearly amount when
determining the proper procurement method.
2. For example, a department uses a courier service throughout the fiscal year and
each invoice is approximately $100.00, but the total spent for the fiscal year is
$15,000.00. Since $15,000.00 is the known yearly amount for courier service, the
proper procurement method is a Request for Quotes. Basing the procurement
method on the $100.00 invoice is incorrect and is considered parceling, as the
department knows it will be spending $15,000.00 per year.
12.2 If the purchase of goods or services is not made in accordance with established purchasing
policies and procedures and the vendor is requesting payment, the following should occur:
1. If the item has not been used, it should be returned to the vendor and request a
refund, or if the service has not been provided, the service should be cancelled.
2. If the item has been used or the service already provided, the department is to
prepare a memo outlining what they purchased, why the procurement violation
occurred, and what will be done differently so it will not happen again. The memo
is to be addressed to the Finance Director and come from the department where
the violation occurred. Once the memo is approved by the Finance Director, it is
to be attached to an Eden invoice for payment.
3. The Finance Director may require additional information to be provided or steps
taken that are in the best interest of the County.
4. If the procurement violation is determined to be intentional by the Finance Director,
the employee responsible for the procurement violation shall be reported to their
supervisor along with the respective department head for possible disciplinary
action.
12.3 The Purchasing Division may issue a Procurement Advisory Memo to the department
outlining a potential violation and recommend further action. Such memos will be included
in the applicable procurement file.
13.0 GENERAL TERMS AND CONDITIONS
1813.1 The General Terms and Conditions for Goods and Services are attached to all contracts
executed by the County of Hawai’i, as may be applicable. The most recent copy, dated
July 1, 1994, may be found on the Finance Department’s intranet page.
13.2 If it is not in the County’s best interests to include the General Terms and Conditions for
Goods and Services as stated above, the department preparing the contract shall work
with and receive approval from the Office of Corporation Counsel to substitute the terms
and conditions stated above with an alternate version.
14.0 REQUISITIONS
14.1 A requisition is entered into the Eden system to electronically request the Purchasing
Division to acquire the desired item(s).
14.2 In the Eden system, there are two types of requisitions:
1. Regular:
The department employee uses the regular queue (the department abbreviation
without any suffix) to enter an electronic requisition for goods, services or
construction.
2. Contract:
The department employee uses the contracts queue (the department abbreviation
plus the suffix “cntr”) to enter an electronic requisition. At the same time the hard
copy contract, contract routing form, and required documentation from the contract
routing form is placed in internal County circulation.
14.3 Submitting Regular Requisitions:
To enter a requisition, log into the Eden system and select the following: Purchasing /
Requisitioning / Requisitions / Main tab. Select the “insert a new record” icon at the top of
the screen. The date field will become yellow and the requisition’s information can be
entered. You will need to tab from each field to the next in order to complete the requisition.
The number is assigned automatically when the requisition is completed.
14.4 Requisition Number:
Select the required department / division modifier by using the drop down choices, by
clicking on the “Z”. Do not type in the modifier as it will create extra spaces between the
modifier and #, making it difficult to search.
14.5 Date:
The date is defaulted to today’s date when you press the “tab” key. During the fiscal year
end, a date other than the current date may be entered upon special instructions from the
Purchasing Division.
1914.6 Description:
The description field has a maximum of 40 characters. The first entry is a brief description
of what is being requisitioned, such as “OFFICE SUPPPLIES”, or “REPAIR PARTS”
(listing supplies or parts is not sufficient). Next, enter your department name or a project
identification or any internal number helpful in identifying the purchase. For Example,
“OFFICE SUPPLIES AGING or REPAIR PARTS PW AUTO EQ CH1234.
14.7 Queue:
There are two choices: your regular department modifier which is the same set of lower
case initials you entered in the requisition number field above or the initials followed by
“cntr” which is used for contracts generated only by the department. Use the drop down
arrow to pick the correct queue.
14.8 PO Type:
There are two choices: “reg” for regular and “bla” for blanket. Select only “reg”. Tab though
the remaining fields, only selecting those necessary if you are using the inventory module.
Do not use the blanket PO type.
14.9 Requested For:
This field defaults to users name, but if the requisition is being submitted at the request of
some other individual, his/her name may be indicated here.
14.10 Group:
This field defaults to your user group ID, but may be changed to any useful abbreviation.
Throughout the requisition process, this field may be updated by the Purchasing Division
indicating its status before being converted to a purchase order.
1. Departments can search (using QBE) on your group to determine if Purchasing is
working on your requisition yet. Users can also use the same group name for all
requisitions generated by your department, various sub-organizations or a different
group could be used to identify requisitions of a certain type. Be advised this group
name will be changed when being processed by the Purchasing Division.
14.11 The next field is the “combine” check box. This is checked by default and should always
be left checked. The Purchasing Division will uncheck this box when converting a
requisition to a purchase order. The next three fields apply to blanket purchase orders
and thus are skipped.
14.12 A department can determine the buyer that is working on a requisition by QBEing on the
requisition and looking at the group field. If the Purchasing Division has begun working on
the requisition, the group will either be “zn” (Diane Nakagawa), “zw” (Steve Wilhelm), “zs”
(Larry Suenishi), “zc” (Nicole Charon). Additional information following those four prefixes
will denote the bid or quote number or due date assigned to the requisition.
2014.13 Contact and phone number:
This field is to be completed and shall contain the name and phone number of the contact
person or individual most able to answer questions about the item desired or answer
questions from the awarded vendor about delivery, etc. This information is printed on the
purchase order, and is useful to the vendor.
14.14 Next, the user is to click on the “items” tab, or type “alt” + “i”. Be advised the information in
the top half of the page is defaulted in and cannot be altered.
14.15 Item Type:
Select the appropriate item type for the following: “g” for goods, “i” for inventory item, “s”
for services, “f” for freight and “t” for taxes (“t” is not to be used). In most instances, the
user will be selecting good or service. The “g” entry will allow entries in the quantity, unit,
and unit cost fields, while “s” assumes it will be a fixed-price lump sum. If using the
Inventory Module, complete the “Item Code” and “Warehouse” fields.
14.16 Quantity:
Enter the quantity of the good or service to be used.
14.17 Unit:
Enter the unit type, or the term or description, of what you will be purchasing. The term
case, box, carton, bags, package, etc. are often misleading. Use terms such as: EACH,
DOZ, LBS, etc.
1. This field will only allow four (4) characters, so if a detailed description is required,
attach a note in the Eden system with additional information. If you are unsure
how many are in a case, use a question mark, e.g., Case/12?
2. The Purchasing Division prefers to purchase supplies in bulk quantities set by the
manufacturer. In addition, most vendors offer discounts for bulk quantity or case
lot purchases.
14.18 Unit cost or Extension:
All requisitions require an estimated amount for the purchase(s) entered. The estimated
amount is pre-encumbered in the selected account number(s) and unavailable so the
account will not go over budget. Users are to enter a realistic estimate. When the purchase
order is cut, the Purchasing Division will update the amount(s) to reflect the actual cost
and funds to be encumbered. The purchase will be made for the actual cost, regardless of
the estimated amount.
1. If the department desires to set an upper limit to be expended, a note shall be
attached in the Eden system informing the Purchasing Division of the maximum
amount to expend. The system will not permit a purchase to be entered that
exceeds the amount of funds available within the base amount.
2114.19 Item Description:
This is the yellow block to the left of the green area and below the cost line. Provide as
complete a description as possible. Specific brands, make and model number are very
helpful, as long as you realize we may end up purchasing a different but equal item.
Indicate colors, sizes, optional features, etc., as needed. Providing as much information
as possible will minimize unnecessary phone calls between vendors, purchasing, and your
department.
14.20 All documents to be submitted with the requisition shall be attached in Eden. Attach either
a file (in MS Word format) or note listing the specifications/requirements in the Eden
system with the requisition. Do not only attach manufacturer’s brochures, but identify the
required specifications and features, options, etc., and include them as a file / note as
described above. You can contact the Purchasing Division if you need assistance in
attaching a document.
14.21 Once the description block is complete, tab through the other blocks (tax code, 1099, fixed
assets, multiple assets, Comm code, and Fund type; these fields will be used by the
Purchasing Division or are not currently being used). Once you tab through these fields,
the Eden system will give you a new line to enter the account number to be charged. If
you do not get the account number line to appear, return to the last field, “fund type”, click
on it and the following choices will appear “row type,”- “item” and “account.” Click the
“account” button for the account number line or click on “item” for another item entry.
14.22 Account Line:
The account number(s) you want the item(s) to be charged to is entered in this block.
Forward past the first two fields, which are for the Project Accounting module, unless your
department is currently using these fields.
1. The third field is the modifier for the account number. The default is “E” for expense,
but the drop-down will also give you “R” for revenue, “B” for balance sheet, “M” for
mask and “S” for shortcut. In most instances, “E” expense will be used. The “M”
mask is used to quickly enter a specific group of different accounts,
and the “S” shortcut is used to quickly enter a specific account number.
2. The fourth field to enter is the account number, noting there are periods separating
the elements of the account number. If the account number is unknown, using the
“Z” dropdown allows the user to search for the account number.
3. The fifth field will default to 100 or 100% of the item to be charged to the entered
account number. If this is correct, no further action is required.
4. If more than one account number is used to charge against an item, determine if
the cost will be divided by a percentage or an exact amount number. If a
percentage is used, at the “%” icon at the far left enter the percentage of the item
to be charged to the first account number. The system will automatically change
22the extended amount on the right to match the desired percent of the total, and
provide a new account line for the second account number to be used.
5. If an exact amount is desired for the partial charge to an account number, click on
“%” icon at the far left, changing it to a “$”. Enter the exact amount to charge the
account number at the far right. Tabbing now will provide another account line and
automatically enter the percentage of the extended item amount being charged to
the first account number. As many account numbers as needed can entered to
equal the total item amount.
6. If additional items are entered on the requisition, use the instructions listed above
until all items are entered. The “Grid” menu at the top of the screen is useful for
adding or deleting lines from the requisition on multi-item entries. Once all items
have been entered, click on the “Document Defaults” tab at the top of the form.
7. The “+” or “-” to the left of the item block either opens or closes the account number
line(s). The magnifying glass opens an “item extension” page, which duplicates the
document defaults screen so that individual items can be awarded to different
vendors.
14.23 Document Defaults:
This screen is used for entering the “bill to” and “ship to” addresses, which will be printed
on the purchase order, as well as inputting the vendor number (if known) and inserting the
contract number (if applicable). If different addresses are required, they are to be listed
separately in the Item Description section. The user must enter a “ship to” and “bill to”
address by entering the location abbreviation for each. If unknown, all available addresses
are shown in the drop-down.
14.24 Delivery Dates:
The system lists options for both “desired” and “required” delivery dates. Use only the
“required” date if there is a specific date by which the item(s) are needed. The requisition
must be entered with adequate time for the Purchasing Division to complete the
procurement process and allow for shipping (and in some cases manufacture).
14.25 FOB Point:
The term “DESTINATION” shall always be included in this field. The following field, “ship
via” is not used.
1. When purchasing equipment and goods internationally, care must be taken to
confirm each parties responsibilities, and understand the different international
shipping terms, such as but not limited to DAP (Delivered at Place) and DAT
(Delivered at Terminal)(preferred). The shipping method may also determine who
is responsible for additional charges, such as customs fees.
2314.26 Instructions:
There are two identical instruction fields. The fields are limited to sixty characters each
and are to be used for special instructions for the vendors, which will show up on all
purchase orders issued. Examples include the name and phone number of a contact
person to coordinate delivery, special delivery instructions such as “deliver weekdays
before 11:00 a.m.”, etc.
14.27 In most instances the vendor name and their addresses for the purchase order are inserted
by the Purchasing Division. In certain instances (usually where a small purchase vendor
refuses to ship anything without a physical purchase order), the user may enter a
“confirming requisition” and enter their own vendor number.
14.28 Submitting Contract Requisitions:
Contract requisitions are requisitions, which the using department has authority to enter
into directly for the procurement of goods or services. Examples include professional
services, sole source and delegated procurements. This does not include requisitions, for
which the department expects the Purchasing Division to conduct formal bids for and enter
into the necessary contract.
14.29 The contract is drafted and submitted to the vendor for signatures along with any other
contract requirements (insurance, bonding, corporate resolutions, etc.). A contract routing
form is completed and, if funds are to be encumbered for the contract, a contract requisition
is entered in the Eden system using the department’s contracts queue (the departmental
abbreviation plus “cntr”). The requisition number assigned is entered on the Contract
routing form and the contract documents are routed in accordance with the attached
routing form.
14.30 Departments and Agencies are to indicate in the notes section if State or Federal funds
are being used for the purchase of goods or services.
14.31 If a contract does not require funds to be encumbered, a requisition in the Eden system is
not to be entered.
14.32 Annual Dates for Submitting Requisitions:
To allow for the Purchasing Division to combine purchases of similar items in a bid
proposal or requisition, departments and agencies are to submit their requisition(s) based
on an annual schedule provided in August of each fiscal year.
15.0 INVOICE PAYMENTS
15.1 Invoices are to be paid utilizing one of these four payment procedures using the Eden
system:
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