Prepared By
Division of Purchasing
City and County of Honolulu
CONTENTS
Purpose
Procurement by the Purchasing Division
Purchasing Methods
A. Advertised Competitive Sealed Bidding
B. Small Purchase Procurement
C. Emergency Procurement
D. Sole Source Procurement
E. Competitive Sealed Proposals
F. Professional Services Procurement
G. Procurement Exempt From Competition
Information on Bids
Address of Purchasing Division
Procurement Policy Regarding Vendors/Contractors
Sales Demonstrations
Government Regulations
Standard of Conduct
Taxes
Local Product Preference
Inspection, Testing, Sampling, Demonstration
Brochures
Notice of Award
Submittal and Payment of Invoice
Vendor's Performance Record
Questions Regarding this Handbook
PURPOSE
The purpose of this handbook is to help vendors/contractors
understand the procurement/contracting policies and procedures of the
City and County of Honolulu.
PROCUREMENT BY THE PURCHASING DIVISION
The Purchasing Division of the Department of Budget and Fiscal Services
solicits and makes awards for goods, services, and construction needed by
departments and agencies of the executive branch of the City and County of
Honolulu. An exception is that City departments and agencies may authorize
making small purchases and emergency awards of goods, services, and
construction. City agencies may also make purchases from price
schedules established by the Purchasing Division.
The purchase of goods, services, and construction is based on the
needs and requests of departments and agencies of the executive branch
of the City, including the Board of Water Supply.
PURCHASING METHODS
The Purchasing Division makes procurement and awards for goods,
services, and construction through competitive sealed bidding as
required by State law and rules. Exceptions to the requirement of
competitive sealed bidding are procurement awards made through
competitive sealed proposals, professional services procurement, small
purchases, sole source procurement, and emergency procurement allowed by
State law and rules.
A. Advertised Competitive Sealed Bidding
Purchase awards for goods, services, and construction of
twenty-five thousand dollars ($25,000) or more are made through competitive
sealed bidding after advertising in a local newspaper of general circulation.
However, when the use of competitive sealed bidding is determined
to be either not practicable or not advantageous, awards for the
purchase of goods, services and construction may be made through
solicitation of requests for proposals.
Bid documents for the purchase of goods, services, and
construction are issued through the Purchasing Division.
The bid document specifies the requirements or scope of work,
specifications and terms and conditions for the furnishing of goods,
services, or construction to meet the needs of City departments and
agencies. Bid specifications are prepared to be adequate and suitable
to meet the City's needs. Bidders must comply with the bid requirements
specified by the bid document. The requirements of the bid document
becomes the requirements of the contract for the purchase of goods,
services, or construction.
Award is made to the lowest responsible and responsive bidder
whose bid meets or exceeds the requirements set forth in the bid
document.
B. Small Purchase Procurement
Small purchases are purchases of under $25,000 for goods, services,
and construction.
In general, small purchases of under $5,000 for goods, services,
and construction are made by City departments and agencies; purchases of
$5,000 or more for goods, services, and construction are made by the
Purchasing Division.
Small purchases of under $2,000 may be made by City departments
and agencies if the purchase prices are fair and reasonable. For small
purchases of $2,000 or more, solicitations of a minimum of 3 price quotes
are needed, unless otherwise justifiable.
For small purchases of $5,000 to under $25,000 for goods, services,
and construction, the Purchasing Division solicits requests for quotations.
Request for quotation forms for specific goods, services, or
construction are available for pick up in the Purchasing Division.
C. Emergency Procurement
Emergency purchases of goods, services, or construction are made
whenever situations or conditions arise which create a threat to public
health, welfare or safety. Emergency purchases are made whenever a
serious need for goods, services, or construction cannot be met through
normal procurement methods and the lack of the goods, services, or
construction will seriously threaten the continued function of
government, the preservation of property, or the health or safety of any
person.
Emergency procurement is made with such competition as is
practicable under the circumstances. City departments and agencies are
authorized to make emergency awards.
D. Sole Source Procurement
Sole source purchases are made if the goods, services, or
construction needed has a unique feature, characteristic, or capability
essential for the City department or agency to accomplish its work and
when there is only one source available from which a particular good,
service, or construction may be obtained. Sole source purchases are
exempt from the normal competitive bid or proposal procedure of
acquiring goods, services, or construction needed and requested by City
departments and agencies.
Sole source awards are made through the Purchasing Division.
E. Competitive Seal Proposals
When the use of competitive sealed bidding is determined to be
either not practicable or not advantageous, awards for the purchase of
goods, services, and construction may be made through solicitation of
requests for proposals. Award under the request for proposal procedure
is made to the responsive and responsible offeror whose proposal is
determined to the most advantageous taking into consideration price and
the evaluation factors set forth in the request for proposals.
F. Professional Services
Professional services are services performed by persons licensed
as professionals by the State, or whose professions are listed in the U.
S. Office of Personnel Management's Qualification Standards Handbook.
Procurement of professional services is made through solicitation
of competitive sealed proposals or made through request for
qualifications on an annual basis and as needed, in accordance with
Hawaii Revised Statutes 103D-304.
G. Procurement Exempt From Competition
There are situations where procurement of goods and services by
competitive means is neither practicable nor advantageous to the City.
In such event, Hawaii Revised Statutes 103D-210 permits exemption form
competitive means. Examples of procurement exempt from competition are
purchases of works of art for public display, published books, maps,
periodicals, performances, including cultural and artistic
presentations.
INFORMATION ON BIDS
Notices of bid solicitations for goods, services, and construction
are advertised in the local newspaper, except for notices for small
purchases. Notices of requests for quotations for small purchases to be
awarded by the Purchasing Division are posted on the bulletin board in
the Purchasing Division.
Bid solicitation documents advertised in a local newspaper of
general circulation and requests for quotations for small purchases for
goods, services, and construction are available for pick up by vendors
in the Purchasing Division without charge, unless otherwise specified in
the solicitation. Plans and specifications for construction projects
mailed outside the island of Oahu are mailed via air freight collect.
Since bid solicitation documents and requests for quotations for
small purchases are not normally mailed out, vendors may visit the
Purchasing Division for information on bid solicitation documents and
requests for quotations available.
If after having taken out a bid document, you decide not to bid on
any of the items, submission of a "NO BID" with reasons noted would be
appreciated.
Bidders must submit their bids to the Purchasing Division on or
before the date and time specified by the bid document. Any bid
received after the date and time will be disqualified. Bids may be
mailed in, but bids received after the date and time specified for bid
opening will be disqualified. Bids may be faxed directly to the
Purchasing Division, but only if the bid solicitation document
specifically permits faxing of bids.
Any vendor who has the financial ability, experience, competence,
and capability to satisfactorily perform the contract may bid.
For "out-of-state" vendor/contractors, we recommend you designate
a local representative to represent you in the bid process including
picking up and returning the bid document. Construction plans and bid
documents mailed outside the island of Oahu will be mailed air freight
collect.
All competitive sealed bids are publicly opened and read aloud in
the Bid Room of the Purchasing Division on the date and time specified
by the bid document. Bid results are available for public inspection in
the Purchasing Division. BID RESULTS ARE NOT GIVEN OVER THE PHONE.
Any questions relating to bids should be directed to the
Purchasing Administrator.
The City solicits bids and makes awards to meet one-time purchases
of goods, services, and construction needed by City agencies. The City
also solicits bids and makes awards based on estimated requirements for
goods and services needed by City agencies over typically a one-year
period. Such awards based on estimated requirements result in the City
establishing a price schedule listing the goods and services needed over
the typical 1 year period. As the items of goods and services are
needed during the typical 1 year period, the City departments and
agencies call the contracted vendor and place purchase orders for the
items.
BID REQUESTS ARE NOT NORMALLY MAILED.
ADDRESS OF PURCHASING DIVISION
530 S. King Street, Room 115
Honolulu, Hawaii 96813
The Division of Purchasing is located on the ocean and Waikiki
side of City Hall (Honolulu Hale), Room 115. Business hours are 7:45
a.m. to 4:30 p.m., Monday to Friday.
PROCUREMENT POLICY REGARDING VENDORS/CONTRACTORS
The policy of the City is to allow vendors/contractors a fair and
equal opportunity to meet the City's needs for goods, services, and
construction.
It is also the policy of the City to prepare bid specifications
that will meet the needs of the City in procuring goods, services, or
construction.
The Director of Budget and Fiscal Services may require any
vendor/contractor to submit answers to questions to determine the bidder's
ability or qualifications to meet the City's needs for goods, services, or
construction called for by the bid solicitation.
SALES DEMONSTRATIONS
Suppliers of goods, services, and construction may conduct sales
demonstration, provide sales brochures, and offer trial goods, without
any obligation to the City. Any unauthorized action on the part of the
supplier shall be at the supplier's own risk, time, and expense.
GOVERNMENT REGULATIONS
All purchasing for the City must comply with State of Hawaii
procurement laws, rules and City ordinances. The City ordinances are
available at the Office of the City Clerk, Honolulu Hale, 530 S. King
Street. State procurement laws and rules are available for viewing at
the Division of Purchasing. Copies of State procurement rules may be
obtained at cost by inquiring at the State Office of Accounting and
General Services, 1151 Punchbowl Street, Room 416, Honolulu, Hawaii.
All construction projects must also comply with the City's Revised
General Provisions of Construction Contracts. The general provisions
are available for viewing at the Division of Purchasing.
Bidders for construction projects shall be properly licensed by
the State Contractors Licensing Board for the work for which they are
bidding. For contracts that are federally funded or partially federally
funded, federal regulations may apply.
STANDARD OF CONDUCT
No official or employee of the Division of Purchasing is permitted
to accept any personal gift in excess of $200, favor, or service from any
vendor under circumstances which can reasonably be inferred that the gift,
favor, or service is intended to influence the officer or employee in the
performance of such person's official duties. Your cooperation in
observing this standard of conduct is appreciated.
TAXES
Federal Excise Taxes are not to be included in any bid to the
City. An exemption certificate will be furnished upon request. All
other applicable taxes should be included in the bid unless specified
otherwise.
LOCAL PRODUCT PREFERENCE
State laws provide for preference to local bidders' products
qualified and registered on the Hawaii products list. The
responsibility for qualification rests upon the person desiring the
preference. To apply for preference for products manufactured or
produced in Hawaii, a person shall complete an application form issued
by the administrator of the State of Hawaii procurement office or
designee.
State law also provides for preference for printing, binding, and
stationery work performed with the State of Hawaii.
INSPECTION, TESTING, SAMPLING, DEMONSTRATION
Inspection, testing, sampling, or demonstration of goods and
services offered by vendors/contractors may be required prior to award.
BROCHURES
When bid solicitations require the submittal of brochures with the
bids, failure to submit such brochures may be sufficient cause for
rejection of bids.
NOTICE OF AWARD
State laws provide for preference to local bidders' products
qualified and registered on the Hawaii products list. The
responsibility for qualification rests upon the person desiring the
preference. To apply for preference for products manufactured or
produced in Hawaii, a person shall complete an application form issued
by the administrator of the State of Hawaii procurement office or
designee.
State law also provides for preference for printing, binding, and
stationery work performed with the State of Hawaii.
SUBMITTAL AND PAYMENT OF INVOICE
Payment for goods, services, and small purchase construction is
made following receipt of invoice and written verification by an
authorized City official that the goods, services, or construction have
been received in accordance with terms of a contract or purchase order.
Payment for advertised construction is made in accordance with the
general provisions of the construction bid document. Payment is made
within thirty (30) days following receipt of goods, services, or
construction and receipt of proper invoices.
For construction projects, payroll affidavits, monthly payment
estimates, and other payment documents should be submitted to the using
City agency. For all other contracts and purchase order awards,
invoices should be submitted to the fiscal office of the using agency.
VENDOR'S PERFORMANCE RECORD
A bidder whose performance is unsatisfactory on any City contract
or order may be suspended and debarred from consideration from award of
all public contracts. No bid or proposal shall be considered and no
award shall be made to any vendor/contractor who has been suspended or
debarred from bidding by the State or City.
QUESTIONS REGARDING THIS HANDBOOK
Any questions regarding policy and purchasing procedure should be
directed to the Purchasing Administrator at telephone (808) 523-4867.
