State Procurement Office
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COMPETITIVE SEALED
BIDDING PART II
Procurement Training
Procurement Training
For
State and County Purchasing Personnel
HAR Chapter 3-122, Subchapter 5
HRS Section 103D-302
State Procurement Office
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Publicizing your IFB
State Procurement Office
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Public Notice § 3-122-16.03
Public Notice and Release of the IFB
Public notice of the IFB is done for the
purpose of securing competition. A copy of
the
solicitation
shall
be
made
available
for
the
solicitation
shall
be
made
available
for
public inspection and pick up at the office of
the Procurement Officer issuing the
solicitation.
State Procurement Office
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Procurement notices for IFB shall be posted
on the SPO Procurement Notice Website at:
http://hawaii.gov/spo/notices
If the agency desires, additional posting in other
publications such as the newspaper can be
publications such as the newspaper can be
done as an option.
The public notice shall include:
1. Brief description of the goods, services or construction;
2. If for a federal grant contract, the title of grant
application and services being sought;
3. Where and when solicitation will be available;
State Procurement Office
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4. Phone number or e-mail address where interested
parties may request a copy;
5. How long the solicitation will be available;
6. If applicable, notice of intention to offer deadline;
7. If applicable, Pre-bid Conference information;
8. If Request for Interest (HAR 3-122-16.31), a
statement that the request is to select a provider;
statement that the request is to select a provider;
and
9. If Multi-Step IFB, general statement that bid is a
multi-step and due date(s) of unpriced technical
and priced offer.
State Procurement Office
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Important Note:
A copy of the public legal notice printed
from the website and a completed
attestation form must be included in the
contract file. A fillable SPO Form 20 is
available on the SPO website for this
purpose.
If the deadline is changed, the date in
the PNS must also be changed.
State Procurement Office
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State Procurement Office
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State Procurement Office
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State Procurement Office
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State Procurement Office
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Solicitation Notice to Vendors
HRS § 3-122-16.04 List of potential offerors.
A list may be compiled to provide the procurement
officer with the names of businesses that may be
officer with the names of businesses that may be
interested in competing for various types of contracts.
Businesses that fail to respond to solicitations or
notices of availability may be removed from the list.
State Procurement Office
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State Procurement Office
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Example of a Vendor Tracking Log
State Procurement Office
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Deadlines for IFB Submittal
§3-122-16.02 Preparation Time for Offer.
The minimum time period between the first date of the
public notice and the opening date (except for
construction, including design-build projects):
IFB (Single Step) – 10 calendar days
Multi-Step IFB- Phase I: 15 calendar days (< days if PO
makes a determination. Phase II: 10 calendar days.
Construction IFB- 15 calendar days between the pre-bid
conference and the opening date.
State Procurement Office
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What to do if changes are
needed in your IFB?
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 16
Changes/ Clarifications to Solicitation. §3-122-16.06
An addendum is issued for amendments and
clarifications (i.e., quantity, purchase
descriptions, delivery schedule, scope of work,
etc.) to solicitations prior to bid openings.
Offerors may be required to acknowledge
receipts of addendums issued; and
Shall be issued to all prospective offerors
known to have received a solicitation or
Notice of Intent .
State Procurement Office
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Addendum Example
Addendum
Example
State Procurement Office
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Addendum
Example
State Procurement Office
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Modification/Withdrawal of Offers
HRS §3-122-16.07
Bids may be modified/withdrawn prior to bid
opening by:
Submitting a written notice with the change to
the receiving office;
Submitting a written notice and change by
facsimile provided original documents are
received within 2 working days of receipt of
facsimile.
State Procurement Office
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Late Offer/Withdrawal/Modification
§3-122-16.08
Any notice of withdrawal, modification, or
actual bid is late when received by the
receiving office after the established due date
and time except when received before
contract award and would have been timely
contract award and would have been timely
but for the action or inaction of personnel
within the procurement activity.
Late bids, request for modification will not be
considered for award and returned unopened
with a letter stating the reason for its return.
State Procurement Office
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A late withdrawal request shall be
responded to with reason for non-
acceptance. Unless due to an obvious
mistake, etc. § 3-122-31
Records
of
each
late
offer,
late
Records
of
each
late
offer,
late
modification or late withdrawal and any
related correspondence shall be made a
part of the procurement file.
State Procurement Office
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DEADLINE FOR BID
SUBMITTAL
State Procurement Office
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Receipt of Bids HRS § 3-122-30
Receipt, Opening and Recording of Bids-Upon receipt by the
receiving Office, each bid and modification shall be time-
stamped but not opened and stored in a secured place until
the time and date set for opening.
Bids and modifications shall be opened publicly, in the
presence
of
one
or
more
witnesses,
at
the
time,
date,
and
presence
of
one
or
more
witnesses,
at
the
time,
date,
and
place designated in the IFB.
The name of each bidder, the bid prices, and any other inform
ation shall be read aloud.
State Procurement Office
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Sample of Stamp Envelop
State Procurement Office
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The name and addresses of the required witnesses shall also be
recorded at the opening. The opened bids shall be available for
public inspection at the time of bid opening.
If the bidder designates trade secrets or other proprietary data to be
confidential the procurement officer or designee shall examine the
bids to determine the validity of any requests. If both parties do not
agree to the disclosure of data, then the Attorney General or
agree to the disclosure of data, then the Attorney General or
Corporation Counsel shall make the determination in writing. All
bidder who were present at the opening shall be so notified in writing
and the material shall be made available provided there is not
protests under chapter 3-126.
The prices, makes and models, or catalogue number of items
offered, shall be publicly available regardless of any designation to
the contrary.
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 26
Witness by:______
State Procurement Office
Competitive Sealed Bidding SPO 100
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CANCELLATION OF AN IFB
CANCELLATION OF AN IFB
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 28
IFB Cancellation- Prior to Deadline
May be cancelled or an offer rejected in whole
or in part pursuant to section HRS 103D-308.
Reasons for cancellation prior to opening, §3-122-96:
Agency no longer requires the goods, services, or
construction;
Agency can no longer reasonably expect to fund the
procurement;
Proposed amendments to the solicitation would be of a
magnitude that a new solicitation is desirable; or
CPO or designee determines that cancellation is in the
public interest.
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 29
Cancellation After Opening but Prior to
Award
The goods, services, or construction being
procured are no longer required;
Ambiguous or otherwise inadequate
specifications were part of the solicitation;
The
Solicitation
did
not
provide
for
The
Solicitation
did
not
provide
for
consideration of all factors of significance to
the agency;
Prices exceed available funds and not
appropriate to adjust quantities to come within
available funds;
State Procurement Office
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SPO (Rev 12/13) 30
All otherwise acceptable offers received are at
clearly unreasonable price;
There is a reason to believe that offers may
not have been independently arrived at in
open competition, may have been collusive or
submitted in bad faith; and
submitted in bad faith; and
A determination by the CPO or designee that
a cancellation is in the public interest.
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 31
A Notice of Cancellation shall be sent to all
businesses solicited and include:
Identification of the solicitation;
Brief explanation of the reason(s) for
cancellation; and
Where appropriate, an explanation that an
opportunity will be given to compete on any
re-solicitation for any future procurements of
similar goods, services, or construction.
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 32
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 33
Bid Evaluation
Offerors that are non-responsive
Mistakes in Bids
Award to the Lowest Responsive Responsible Offeror
Award to the Lowest Responsive Responsible Offeror
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 34
Rejection of Offers
Offeror is non-responsible as determined by
HAR subchapter 13 (Responsibility of Bidders
and Offerors). A person who does not have the capability in
all respects to perform fully the contract requirements, and the
integrity and reliability which will assure good faith performance.
Offer is
non
-
responsive
(does not conform to
Offer is
non
-
responsive
(does not conform to
solicitation by failure to meet the requirements
of the specifications or permissible alternates
or other acceptability criteria). A person who has
submitted a bid which does not conform in all material respects
to the IFB.
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 35
Upon determination of non-responsibility,
the offeror shall be notified in writing and
the decision shall be final unless the
offeror applies for administrative hearing
pursuant to HAR Section 3-126-42.
Offers
that
have
been
rejected
or
a
Offers
that
have
been
rejected
or
a
solicitation which has been cancelled but
which the offers have been opened shall
be retained in the procurement file. Any
unopened offers shall be returned to the
offerors upon request or otherwise
disposed of.
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 36
Rejection letter
September 17, 2008
Mr. Kevin Wong
Triple F. Distributing Inc.
1845 Auiki Street
Honolulu, Hawaii 96819-3100
SUBJECT: Invitation for Bids No. IFB-09-017-O
Furnishing and Delivering Coarse Paper Products on Oahu
Dear Mr. Wong:
Thank you for your response to the subject solicitation which opened September 3, 2008. Please be
advised that your offer for Item No. 2, 8 and 10 will not be considered for award because the
samples received (if any) did not have proper identification and no specifications or brochures were
received when requested. Refer to Special Provisions, section 9.6, Samples.
LINDA LINGLE
GOVERNOR
PROCUREMENT POLICY BOARD
DARRYL W. BARDUSCH
LESLIE S. CHINEN
DARYLE ANN HO
KEITH T. MATSUMOTO
RUSS K. SAITO
PAMELA A. TORRES
AARON S. FUJIOKA
ADMINISTRATOR
STATE OF HAWAII
STATE PROCUREMENT OFFICE
P.O. Box 119
Honolulu, Hawaii 96810-0119
Tel: (808) 587-4700 Fax: (808) 587-4703
www.spo.hawaii.gov
SSSSSSSSSSSSSSSSSSS
received when requested. Refer to Special Provisions, section 9.6, Samples.
9.6 Samples. When requested by the State, the bidder shall submit at his own expense,
within five (5) working days from date of the State's request, detailed specifications,
brochures, and sample(s) of the item(s) bid, properly identified. Failure to do so shall be
cause for rejection of the bid. Any sample submitted for testing purposes will become the
property of the State and will not be returned to the bidder. The State shall be the sole judge
as to the suitability of the item, and its decision will be final.
Offeror shall identify all samples by brand name and product or model number, exactly as
offered in the IFB in order for product to be acceptable.
When the product bid is a private label product, a permanent pre-printed impression on the
container or the product itself must identify the product, or a label affixed by the manufacturer
that will identify the product, will be acceptable. The mere attaching of an adhesive label by
the bidder will not be considered positive identification.
Any sample of a private label product failing to meet this identification requirement will not be
considered for award. No changes or clarification of product identification will be considered.
Offeror is advised, however, that the mere meeting of product identification or labeling
requirements does not mean that the product itself meets specifications and is acceptable.
Please direct any questions regarding this matter to Wendy Orita at (808) 586-0563, fax (808) 586-
0570, or e-mail: wendy.[email protected]ov.
Sincerely,
Ruth E. Yamaguchi
Procurement Officer
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 37
Mistakes in Bids
HAR § 3-122-31
An obvious mistake may be corrected or
withdrawn or waived by the Offeror to the extent
it is not contrary to the best interest of the
purchase agency or to the fair treatment of
purchase agency or to the fair treatment of
other bidders.
A mistake discovered before the deadline for
receipt of bids may be corrected or withdrawn
as provided in section 3-122-16.07.
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 38
A mistake discovered after the deadline for
receipt of bids but prior to award may be
corrected or waived if:
§3-122-31(c)
Attributable to arithmetical error and the PO can correct the
mistake;
If mistake is minor informality which does not affect price, quantity,
quality, delivery, or contractual conditions, the PO may waive or
allow bidder to request correction by providing documentation of
that mistake (i.e., typographical errors, transposition errors; failure
to provide an original signature but only if unsigned bid or
photocopy is accompanied by other material indicating the
bidder’s intent to be bound).
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 39
A mistake discovered after the deadline for
receipt of bids but prior to award may be
corrected or waived if:
Can be withdrawn if mistake is attributable to an
obvious error which shall affect price, quantity,
quality, delivery, or contractual conditions
provided:
Bidder requests withdrawal by submitting documentation that
demonstrates a mistake was made; and
The PO prepares a written approval or denial in response to the above
request.
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 40
A mistake discovered after award may be
corrected or withdrawn if CPO or HOPA makes
a written determination that it would be
unreasonable not to allow the mistake to be
remedied or withdrawn.
remedied or withdrawn.
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 41
Bid Evaluation and Award
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 42
Bid Evaluation and Award HAR 3-122-33
Award shall be made to the lowest responsive,
responsible bidder and based on criteria set
forth in IFB. The solicitation may require the
submission of samples, descriptive literature,
technical data, or other material to verify
technical data, or other material to verify
product acceptability.
It may also provide for inspecting or testing of a
product for characteristics as quality or
workmanship; examination of elements as
appearance, finish, taste, or feel; or any other
examinations to determine whether the product
conforms to any other purchase description
requirements.
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 43
Evaluation is to determine if a bidder’s offer is
acceptable as specified in the IFB and not
whether a product is superior to another. Any
offering not meeting acceptability requirements shall
be rejected as nonresponsive.
The award shall be posted on the Procurement
Reporting System (PRS) within (7) working days.
Review Procurement Circular No. 2010-01, Posting Procurement Awards, Notices and
Solicitation (PANS)
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 44
In the event all bids exceed available funds, the
HOPA may under certain conditions (time or
economic considerations) negotiate with the
lowest responsible, responsive bidder to reduce
the scope of work to bring the bid within the
the scope of work to bring the bid within the
available funds. §103D-302(h)
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 45
Tie Bids § 3-122-34
Low tie bids are bids from responsive,
responsible bidders that are identical in price
meet all requirements and criteria of the bid.
At the discretion of the PO, award may be made
in any manner to resolve tie bids, including but
not limited to:
not limited to:
award to business providing goods produced
or manufactured in the State or to a business
that maintains a business in the State;
award to bidder who received the previous
award;
award may be made by drawing lots.
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 46
Abstract
A record showing the following information
shall be made a part of the procurement file:
The IFB number;
A description of the good, service, or
construction; and
A listing of all the bidders and prices
submitted.
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 47
Example of Abstract
BID ABSTRACT
IFB-09-022-SW, Inventory Decals
release: 9/24/08; open: 10/8/08
ps: wendy
Item
No.
1
STATE OF HAWAII INVENTORY DECALS
a 100 thru 500 26,800 ea. $ 3.23 $ 865.64 $ 5.30 $ 1,420.40 $ 29.00 $ 7,772.00
b 600 thru 1,000 10,500 ea. $ 3.23 $ 339.15 $ 8.29 $ 870.45 $ 8.50 $ 892.50
c 1,100 thru 2,000 14,800 ea. $ 3.23 $ 478.04 $ 6.95 $ 1,028.60 $ 6.75 $ 999.00
d 2,100 thru 5,000 28,400 ea. $ 3.23 $ 917.32 $ 5.18 $ 1,471.12 $ 5.25 $ 1,491.00
e 5,100 thru 7,000 100 ea. * $ 3.23 $ 3.23 $ 439.01 $ 439.01 $ 4.50 $ 4.50
f 7,100 thru 10,000 100 ea. * $ 3.23 $ 3.23 $ 439.01 $ 439.01 $ 4.35 $ 4.35
Quantity Differential**
Estimated
Quantity
Whitlam Label Company Novavision, Inc.Seton Identification Products
Price per
100
Estimated Total
Price
g 10,100 thru 15,000 100 ea. * $ 3.23 $ 3.23 $ 439.01 $ 439.01 $ 4.25 $ 4.25
h 15,100 thru 25,000 100 ea. * $ 3.23 $ 3.23 $ 439.01 $ 439.01 $ 4.15 $ 4.15
i 25,100 thru 50,000 100 ea. * $ 3.23 $ 3.23 $ 439.01 $ 439.01 $ 3.95 $ 3.95
j 50,100 thru 75,000 100 ea. * $ 3.23 $ 3.23 $ 439.01 $ 439.01 $ 3.75 $ 3.75
k 75,100 thru 100,000 100 ea. * $ 3.23 $ 3.23 $ 439.01 $ 439.01 $ 3.50 $ 3.50
$
2,622.76
$
7,863.64
$
11,182.95
2
130 ea. $ 0 $
0.00
$ 7.88 $
1,024.40
$ 0.00 $
0.00
3
50 ea. $ 0 $
0.00
$ 3.28 $
164.00
$ 10.00 $
500.00
$
2,622.76
$
9,052.04
$
11,682.95
Seton Temp-Chem Decals
M1684
ESTIMATED TOTAL SUM BID PRICE (Item No. 1, 2, 3):
Change in Bar Code or
Human Readable
Sequences
Change in Color to
"State of Hawaii"
Brand Name and Model
No. of pressure sensitive
adhesive (3M adhesive
or equal):
ESTIMATED TOTAL PRICE (Item No. 1, a thru k):
3M polyester material with
adhesive
Flexcon; V-344 permanent
acrylic
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 48
Single Offer to an IFB § 3-122-35
If there is only one responsive, responsible
offeror for an IFB, the award may be made
to the single offeror provided:
The PO determines that the price is fair and reasonable;
Other prospective bidders had reasonable opportunity to
respond; or there is not adequate time for resolicitation.
Conduct an alternative procurement method, not limited to
direct negotiations with the sole bidder first.
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 49
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 50
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 51
No Bids Received for IFB §3-122-35
If there is no bids received or there are no
responsive, responsible bidders for an IFB, an
alternative procurement method may be done
provided it is not practicable or advantageous to
issue a new solicitation due to time constraints,
issue a new solicitation due to time constraints,
competition in the marketplace, costs to re-
solicit.
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 52
Documentation for the alternative procurement
shall:
State the reasons for selection and length of
contract period;
Receive prior approval of the CPO; and
Be a part of the contract file upon award.
Be a part of the contract file upon award.
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 53
SPO -15
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 54
SPO-15
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 55
Protests of Solicitation / Award
HRS § 103D-701
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 56
Protests, HRS § 103D-701
Any actual or prospective bidder, offeror, or
contractor who is aggrieved in connection with a
solicitation or award may protest to the CPO or
a designee specified in an IFB.
The protest must be submitted in writing within 5
The protest must be submitted in writing within 5
working days after the posting of award of the contract
on the PRS (requirement of HRS 103D-302 or 103D-
303) if no request for debriefing has been made, as
applicable. and
Further, no protest based on the content of the IFB
shall be considered unless submitted prior to date for
receipt of offers.
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 57
Protest Continued
The CPO or designee may resolve a protest
concerning award or on a solicitation prior to an
administrative proceeding or action in court. If
a protest cannot be resolved by mutual
agreement (resolution by agency and aggrieved
agreement (resolution by agency and aggrieved
protestor), the CPO or designee shall promptly
issue a decision in writing to either uphold or
deny the protest.
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 58
Protest Continued
The decision shall:
State the reasons for the action (uphold or
denial); and
Inform the protestor of their right to an
administrative proceeding.
administrative proceeding.
A copy of the decision shall be provided (mailed
or otherwise furnished) immediately to the
protestor and any other party intervening
(attorney for protestor).
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 59
Sample Protest letter
May 28, 2010
[Protestor]
[address]
Dear Mr. /Ms. / Mrs. xxxxxxx:
Subject: Protest of [RFP/IFB number]
[ Title of solicitation ]
This is in response to the protest of subject solicitation submitted on behalf of your client [ vendor name, if represented by attorney firm ]. After careful review and consideration of the written
submittals, the arguments therein, and discussions with the affected agencies, it would be in the State’s best interest to cancel the subject solicitation. [ Edit this section as need to fit circumstances of
Procurement Officer’s determination to deny or sustain protest; if denied, reasons for denial ]
Consequently, the protest is denied, and this decision is final and conclusive. Pursuant to HRS §103D-709, and as amended by ACT 175, SLH 2009, this decision may be appealed by filing a request for
administrative review along with a cash or protest bond within seven (7) calendar days from issuance of this letter to:
Office of Administrative Hearings
Department of Commerce and Consumer Affairs
335 Merchant Street, Suite 100
Honolulu, HI 96813
The Procurement Officer of the [ dept / agency ] also shall be notified within seven calendar days after the issuance of this decision, if a request for an administrative review will be filed.
ACT 175, SLH 2009, requires the following. The protestor may request an administrative review only when all of the following are met:
1. The subject contract is conducted pursuant to HRS §§ 103D-303 competitive sealed proposals;
2.
The estimated value of the contract is:
2.
The estimated value of the contract is:
(1) Less than $1,000,000, and the protest concerns a matter that is greater than $10,000; or
(2) $1,000,000 or more, and the protest concerns a matter that is equal to no less than ten per cent of the estimated value of the contract; and
3. A cash or protest bond is submitted with the request in the amount of:
(1) $1,000 for a contract with an estimated value of less than $500,000;
(2) $2,000 for a contract with an estimated value of $500,000 or more, but less than $1,000,000; or
(3) One-half (1/2) percent of the estimated value of the contract if the estimated value of the contract is $1,000,000 or more; but in any event the bond amount shall not exceed $10,000.
In both items 2 and 3, the ‘estimated value’ means: for procurements pursuant to HRS §103D-303, the amount of the responsible offeror’s proposal that is determined to be the most advantageous.
If the protestor prevails in the DCCA administrative proceeding, the cash or protest bond shall be returned. If the protestor does not prevail, the cash or protest bond will be deposited into the general
fund. Bonds forms are available at http://hawaii.gov/spo,click on ‘Forms for Vendors, Contractors, and Services Providers’ under the ‘QuickLinks’ menu.
Questions on this letter may be directed to [dept contact person / phone no. / email ].
Sincerely,
[ name ]
Procurement Officer
cc: [if applicable]
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 60
Protest
The decision shall be final and conclusive
unless any person adversely affected by the
decision commences an administrative
proceeding under HRS section 103D-709
(Hearings Officer by the DCCA). Review Act 173 SLH 2012
In the event of a timely protest, no further action
In the event of a timely protest, no further action
shall be taken on the solicitation or award of the
contract until the CPO makes a written
determination that award of the contract without
delay is necessary to protect the substantial
interests of the State.
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 61
Protest
In addition to any other relief, when a protest is
sustained and the protestor should have been
awarded the contract but is not, then the
protestor shall be entitled to actual costs
reasonably incurred in connection with the
reasonably incurred in connection with the
solicitation, including bid or proposal
preparation costs but not attorney’s fees.
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 62
Protest
No action shall be taken on a solicitation or
award of a contract while a proceeding is
pending, if the procurement was previously
stayed under HRS 103D-701(f).
The Hearings Officer shall decide whether the
determination of the CPO or designee were in
accordance with the Constitution, statutes, rules,
and terms and conditions of the solicitation or
contract, and shall order such relief as may be
appropriate in accordance with HRS 103D.
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 63
Time Limitations on Actions
Requests for administrative review of a decision (Responsibility
of Offeror, protest) made by the CPO or designee shall be
made directly to the office of administrative hearings of the
DCCA within 7 calendar days of the issuance of a written
determination by the CPO or a designee. ACT 173, SLH2012
DCCA will decide on contracts that are less than 1M and the
protest concerns a matter that is > $10K
OR
the contract is
protest concerns a matter that is > $10K
OR
the contract is
more than $1M an the protest concerns a matter that is = or >
10% of the est. value of the contract.
Requests for judicial review under HRS 103D-710, shall be
filed in the supreme court within 10 calendar days after the
issuance of a written decision by the DCCA Hearings Officer. (
ACT 173, Circuit court make a decision within 30 days from the
filing of the judicial review)
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 64
Procurement Circular 2012-03
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 65
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 66
HRS §103D-310 Responsibility of offerors
§103D-310 Responsibility of offerors. (a) Unless the policy board, by rules, specifies otherwise, before submitting
an offer, a prospective offeror, not less than ten calendar days prior to the day designated for opening offers, shall give
written notice of the intention to submit an offer to the procurement officer responsible for that particular
procurement.
(b) Whether or not an intention to bid is required, the procurement officer shall determine whether the prospective
offeror has the financial ability, resources, skills, capability, and business integrity necessary to perform the work. For
this purpose, the officer, in the officer's discretion, may require any prospective offeror to submit answers, under oath,
to questions contained in a standard form of questionnaire to be prepared by the policy board. Whenever it appears
from answers to the questionnaire or otherwise, that the prospective offeror is not fully qualified and able to perform
the intended work, a written determination of nonresponsibility of an offeror shall be made by the head of the
purchasing agency, in accordance with rules adopted by the policy board. The unreasonable failure of an offeror to
promptly supply information in connection with an inquiry with respect to responsibility may be grounds for a
determination of
nonresponsibility
with respect to such
offeror
.
The decision of the head of the purchasing agency shall
determination of
nonresponsibility
with respect to such
offeror
.
The decision of the head of the purchasing agency shall
be final unless the offeror applies for administrative review pursuant to section 103D-709.
(c) All offerors, upon award of contract, shall comply with all laws governing entities doing business in the State,
including chapters 237, 383, 386, 392, and 393. Offerors shall produce documents to the procuring officer to
demonstrate compliance with this subsection. Any offeror making a false affirmation or certification under this
subsection shall be suspended from further offerings or awards pursuant to section 103D-702. The procuring officer
shall verify compliance with this subsection for all contracts awarded pursuant to sections 103D-302, 103D-303, 103D-
304, and 103D-306, and for contracts and procurements of $2,500 or more awarded pursuant to section 103D-305;
provided that the attorney general may waive the requirements of this subsection for contracts for legal services if the
attorney general certifies in writing that comparable legal services are not available in this State.
(d) Information furnished by an offeror pursuant to this section shall not be disclosed to any person except to law
enforcement agencies as provided by chapter 92F. [L Sp 1993, c 8, pt of §2; am L 1997, c 352, §§10, 23; am L 2003, c 52,
§6; am L 2004, c 216, §4; am L 2005, c 211, §1; am L 2011, c 190, §2]
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 67
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 68
Contract Template
Use AG-03 Form, CONTRACT FOR GOODS OR
SERVICES BASED UPON COMPETITIVE SEALED
BIDS.
BIDS.
Use AG-05 Form for CONTRACT SUPPLEMENT
http://www4.hawaii.gov/StateForms/Internal/ShowInt
ernal.cfm?&ShowAll=Yes
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 69
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 70
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 71
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 72
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 73
Example of Notice of Award
Subject: Notice of Award
This is to inform you that you are awarded a contract for the subject solicitation. The award
is conditioned upon your:
1) Executing the attached contract per the accompanying Instructions; and
2) Furnishing certificate
(s) of insurance for the coverage(s) specified in the
"Liability Insurance" clause of the Special Provisions of the solicitation.
Should you have any questions on the execution of the contract, please contact , phone
no. (808) 586- .
Please return th
e agreement, fully executed, to the State Procurement Office within ten (10)
days from receipt of this notice.
After the contract is signed by the State, you will receive a "Notice to Proceed" that will
designate the official starting date. This notice o
f award is issued as the first step in the
award process. For a variety of reasons, the State may find cause for cancellation of the
award, thus the State of Hawaii is not liable for any work, contract, costs, expenses, loss of
profit, or any damages what
soever incurred by your company until the contract has been
fully executed by the State of Hawaii and the Notice to Proceed issued.
Sincerely,
RUTH E. YAMAGUCHI
Procurement Officer
State Procurement Office
Attach.
c:
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 74
Example of Notice to Proceed
LINDA LINGLE
GOVERNOR
PROCUREMENT POLICY BOARD
DARRYL W. BARDUSCH
LESLIE S. CHINEN
DARYLE ANN HO
GREGORY L. KING
RUSS K. SAITO
PAMELA A. TORRES
AARON S. FUJIOKA
ADMINISTRATOR
STATE OF HAWAII
STATE PROCUREMENT OFFICE
NOTICE TO PROCEED
DATE:
STATE OF HAWAII
STATE PROCUREMENT OFFICE
DATE:
TO:
FROM: Procurement Officer
SUBJECT:
The official commencement date to proceed with your work or delivery is.
Delivery:
Liquidated Damages:
We will consider request(s) for extension of completion of time only when submitted in writing,
with full justification, to the State Procurement Office prior to expiration of completion date.
Further, any changes to the contract must be processed through the State Procurement Office.
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 75
PREFERENCES
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 76
PREFERENCES
HAWAII PRODUCTS
(Ref. ACT 175, SLH 2009, eff. 7/1/09)
PRINTING, BINDING, AND STATIONERY WORK
(HRS §103D-1003 and HAR 3-124 Subchapter 2)
RECIPROCAL
(HRS §103D-1004 & HAR 3-124, Subchapter 3)
RECYCLED PRODUCTS
(HRS § 103D-1005 & HAR 3-124, Subchapter 4)
SOFTWARE DEVELOPMENT BUSINESSES
(HRS § 103D-1006 & HAR 3-124, Subchapter 5)
TAX PREFERENCE
(HRS §103D-1008 & HAR 3-124, Subchapter 7)
QUALIFIED COMMUNITY REHABILIATATION PROGRAMS
(HRS § 103D-1009 & HAR 3-124, Subchapter 8)
BIOFUEL
(HRS §103D-1012)
SET-ASIDE FOR SMALL BUSINESS
(HRS §103D-906
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 77
HAWAII PRODUCTS
PURPOSE - Promote the use of Hawaii Products mined, excavated,
manufactured , raised, or grown in Hawaii and registered on the Hawaii Products List.
APPLICATION - All bids and proposals when a Hawaii Product is
available.
PROCEDURE - Vendors submit an application.
Based on the amount of Hawaii input, products are awarded either a Class I, or II
Based on the amount of Hawaii input, products are awarded either a Class I, or II
registration. List of vendors and products are sent out via email to departments. Or a
self-certification application is submitted by the offeror.
EVALUATION PROCEDURE -Price of the Hawaii
Product shall be decreased by the applicable 10% and 15%
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 78
PRINTING, BINDING, AND
STATIONERY WORK
PURPOSE - Promote the use of printing, binding, and stationery work,
performed within the State of Hawaii.
APPLICATION
-
All bids for printing, binding, and stationery work.
APPLICATION
-
All bids for printing, binding, and stationery work.
PROCEDURE - Vendor shall indicate that all work will be performed in-
state, including all prep work, presswork, bindery work, and any other production
related work to include all shipping and storage costs.
EVALUATION PROCEDURE- The amount of the bid
performed out-of-State shall be increased by 15%.
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 79
RECIPROCAL
PURPOSE - Ensure fair competition for Hawaii businesses when competing
against bidders from States that apply preferences.
APPLICATION - All bids when determined by the Chief Procurement
Officer.
EVALUATION PROCEDURE
-
When applied, the amount
EVALUATION PROCEDURE
-
When applied, the amount
of the reciprocal preference shall be added to the out-of-state bidder’s price. The
amount of the reciprocal preference shall equal to the preference the out-of-state bidder
would be given in their own State. If Hawaii has a preference comparable to the out-
of-state bidder’s state, the preference shall be the amount the out-of-state preference
exceeds the Hawaii preference.
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 80
RECYCLED PRODUCTS
PURPOSE - Encourage the use of recycled products by State and county
agencies.
APPLICATION - All bids when it is required or stated in the
solicitation. Recycled office paper and printed material is mandatory for State agencies.
PROCEDURE - The bid shall contain the percentage of recycled content
required to qualify for the preference. Bidders desiring the preference shall certify the
required to qualify for the preference. Bidders desiring the preference shall certify the
recycled content of their product by submitting SPO Form-8, Certification of Recycled
Content.
EVALUATION PROCEDURE - When applied, where a bid
contains both recycled and non-recycled products, the price of the recycled products
shall be decreased by at least 5%.
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 81
SOFTWARE DEVELOPMENT
BUSINESSES
PURPOSE -Promote the use of Hawaii software development businesses.
APPLICATION - All bids or proposals for software development.
PROCEDURE - An offeror desiring the preference shall have a minimum
of 80% of its workforce for the development of the software residing in Hawaii. The
of 80% of its workforce for the development of the software residing in Hawaii. The
offeror shall submit SPO Form-09, to certify they meet the requirements of a Hawaii
Software Development Business.
EVALUATION PROCEDURE - The price of the non-Hawaii
software development business shall be increased by 10%.
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 82
TAX PREFERENCE
PURPOSE -To ensure fair competition for bidders paying the Hawaii General
Excise and Hawaii Use Tax.
APPLICATION - All bids subject to the Hawaii General Excise and
applicable Use Tax.
PROCEDURE
-
Any tax paying bidder may qualify for the preference by
PROCEDURE
-
Any tax paying bidder may qualify for the preference by
submitting a tax clearance certificate or Hawaii Compliance Express Certificate of
Vendor Compliance.
EVALUATION PROCEDURE -The price of the tax exempt
bidder shall be increased by the applicable Hawaii General Excise and Use Tax.
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 83
QUALIFIED COMMUNITY
REHABILIATATION PROGRAMS
PURPOSE - Promote the use of goods and services provided by qualified
community rehabilitation programs located in Hawaii.
APPLICATION - All bids and proposals for goods and services but
excluding construction.
PROCEDURE
-
PROCEDURE
-
Offerors desiring the preference shall be listed on the
Partners in Employment Program as maintained by the State Procurement Office.
EVALUATION PROCEDURE - The price submitted by a
non-qualified community rehabilitation program shall be increased by 5%.
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 84
BIOFUEL
PURPOSE - Promote the use biodiesel or biofuel for diesel
engines or boilers.
APPLICATION - All bids for diesel fuel or boiler fuel.
$.05 per gallon of 100% biodiesel. For blends containing both
$.05 per gallon of 100% biodiesel. For blends containing both
biodiesel and petroleum-based diesel, the preference shall be
applied only to the biodiesel portion of the blend.
PROCEDURE - To be determined.
EVALUATION PROCEDURE – Increase the price
of the non-biodiesel or non-biofuel by five cents per gallon.
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 85
SET-ASIDE FOR SMALL
BUSINESSES
PURPOSE - Promote the growth and development of
small businesses.
APPLICATION - All solicitations set-aside for
award to small businesses.
PROCEDURE - To be determined.
EVALUATION PROCEDURE - To be determined.
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 86
Conducting Invitations for Bids
State Procurement Office
Conducting Invitations for Bids
Pursuant to HRS Section 103D-302 and
HAR Chapter 3-122, Subchapter 5
on the
Hawaii eProcurement System
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 87
What is HePS/HIePRO?
HePS is the electronic procurement system for
the State of Hawaii, a system for issuing
solicitations, receiving responses, and issuing
notices of award.
Vendor registration
Electronic Solicitations
E-mail Notification
Submission of Electronic Responses
Electronic Award
Searchable
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 88
HIePRO Helps Meet the
Requirements of Procurement for Public Agencies
We must be Open/Transparent.
Our ‘shareholders’ are everyone: the taxpayers,
legislators, advocates, providers, interested parties, etc.
We must be Fair to all qualified vendors.
Level playing field.
We ARE Accountable.
Audit trail - Document, document, document!
Established procedures must be followed consistently:
Statutes, rules, procurement circulars, establish
procedures and guidelines.
ABA Model Procurement Code.
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 89
State Procurement Office
Competitive Sealed Bidding SPO 100
SPO (Rev 12/13) 90
The State Procurement Office
Hawaii eProcurement System
HIePRO
More information including: buyer and vendor FAQs,
http://hawaii.gov/spo click ‘Hawaii eProcurement System HePS’
Questions? Contact us:
Mara Smith: 587-4704 mara.smith@hawaii.gov
Bonnie Kahakui: 587-4702 bonnie.a.kahakui@hawaii.gov
Wendy Orita: 586-0563 wendy.m.orita@hawaii.gov
