REVISED UHREVISED UHADMINISTRATIVEADMINISTRATIVE

PROCEDURESPROCEDURESFORFOR

PROCUREMENTPROCUREMENT

(APM 8.200-8.295 (APM 8.200-8.295 [INTERIM])[INTERIM])

EFFECTIVE

JANUARY 1, 2005

REPEAL OF STATUTORY REPEAL OF STATUTORY EXEMPTION FROM HRS 103DEXEMPTION FROM HRS 103D

Effective January 1, 2005 (Act 216, 2004 Session Laws), UH procurement procedures must be consistent with HRS 103D and Hawaii Administrative Rules on procurement issued by DAGS (HAR 3-120 to 3-132)

UH President will be re-established as University’s chief procurement officer (CPO) for purposes of HRS 103D (HRS 103D-203)

VP for Budget and Finance/Chief Financial Officer will replace the VP for Administration in the UH Procurement Procedures

EXEMPT EXEMPT PROCUREMENTSPROCUREMENTS

APM SECTIONAPM SECTIONA8.220.10A8.220.10

EXEMPT PROCUREMENTSEXEMPT PROCUREMENTS

Exemptions covering purchases of particular types of goods and services must be expressly provided by HRS 103D or by HAR as approved by the State Procurement Policy Board

Statutory Exemption for UHM/UHH Conference Center Revolving Fund expenditures eliminated

EXEMPT PROCUREMENTSEXEMPT PROCUREMENTS(continued)(continued)

Only statutory exemptions for particular University funds are Community Colleges Conference Center, Commercial Enterprises, and Alumni Activities

UH President can approve exemptions for specific purchases from HRS 103D procurement procedures on a case by case basis (OPRPM Form 138)

EXEMPT PROCUREMENTSEXEMPT PROCUREMENTS(continued)(continued)

Proposed amendment to exempted contracts must be approved by UH President (OPRPM Form 149)

Notice of proposed exemption or amendment to an exempted contract to be posted for 7 days to permit the submission of public objections (OPRPM Forms 150 and 151)

OPRPM Form 138 (Rev. 01/2005)

REQUEST FOR EXEMPTION FROM CHAPTER 103D, HRS

TO: OFFICE OF PROCUREMENT AND REAL PROPERTY MANAGEMENT

FROM: (Department/Program)

Pursuant to APM Section A8.220, the Department requests a procurement exemption to purchase the following: Description of goods, services, or construction:

Estimated Cost: $

(1) Explanation describing how procurement by standard competitive means is either not practicable or not advantageous to the University;

(2) Details of the process or procedures to be followed in selecting the vendor to ensure as

fair and open competition as practicable;

(Attach Additional Sheets if Necessary)

- 1 -

(3) A description of the Department’s internal controls and approval requirements for the exempted procurement; and

(4) A list of Department personnel, by position title, who will be involved in the approval

process and administration of the contract:

Direct questions to: Phone:

I CERTIFY THAT THE INFORMATION PROVIDED ABOVE IS TO THE BEST OF MY KNOWLEDGE, TRUE AND CORRECT.

Full Name of Principal Investigator, Department Head, or Administrator

Signature Date

Full Name of Fiscal Officer Signature Date

FOR OPRPM USE ONLY

OPRPM COMMENTS:

________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ This exemption should be considered for inclusion of the listing of exempt procurements

provided in APM A8.220: Yes _____ No _____.

_____ APPROVED _____ DENIED

________________________________________________________ PRESIDENT, UNIVERSITY OF HAWAI‘I DATE

- 2 -

OPRPM Form 149 (01/2005)

REQUEST FOR AMENDMENT TO EXEMPTION FROM CHAPTER 103D, HRS, CONTRACT

TO: OFFICE OF PROCUREMENT AND REAL PROPERTY MANAGEMENT

FROM: (Department/Program)

Pursuant to APM Section A8.220, the Department requests an amendment to a contract issued under a previously approved procurement exemption. Purchase Order No./Contract No. ________________________

Name of Contractor: ___________________________________________ Description of goods, services, or construction: Original Contract Price: $ Amended Contract Price: $

(1) The scope of work for the contract will be revised as follows:

(Attach Additional Sheets if Necessary)

- 1 -

(2) Explanation of the reasons that the amendment is necessary:

Direct questions to: Phone:

I CERTIFY THAT THE INFORMATION PROVIDED ABOVE IS TO THE BEST OF MY KNOWLEDGE, TRUE AND CORRECT.

Full Name of Principal Investigator, Department Head, or Administrator

Signature Date

Full Name of Fiscal Officer Signature Date

FOR OPRPM USE ONLY

OPRPM COMMENTS:

________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________

____ APPROVED ____ DENIED

________________________________________________________ PRESIDENT, UNIVERSITY OF HAWAI‘I DATE

- 2 -

OPRPM Form 150 (01/2005)

UNIVERSITY OF HAWAI‘I

NOTICE OF EXEMPTION FROM CHAPTER 103D, HRS

The President, University of Hawaii, is in the process of reviewing the request from (Department/Campus)

______________________________________________________ for exemption from Chapter 103D, HRS, for the following goods, services, or construction:

Vendor: (If known) Address:

Term of Contract: From: To: Cost: (If known)

Direct any inquiries to: Department: Phone Number: Contact Name/Title:

Address: Fax Number:

Date Posted: ____________

Submit written objections to this notice to issue an exemption from Chapter 103D, HRS, within seven (7) calendar days from the date posted to:

Office of Procurement and Real Property Management 1400 Lower Campus Road, Room 15 Honolulu, Hawai‘i 96822

OPRPM Form 151 (01/2005)

UNIVERSITY OF HAWAI‘I NOTICE OF AMENDMENT TO EXEMPTION FROM CHAPTER 103D, HRS, CONTRACT

Purchase Order No. / Contract No. __________________________

Name of Contractor: _____________________________________________ Description of goods, services, or construction:

The scope of work for the contract is revised as follows: Original Contract Price: $ Amended Contract Price: $

Direct any inquiries to: Department: Phone Number: Contact Name/Title: Address: Fax Number:

Date Posted: _______________

Submit written objections to this notice of intent to amend a procurement exemption contract within seven (7) calendar days from the date posted to:

Office of Procurement and Real Property Management 1400 Lower Campus Road, Room 15 Honolulu, Hawai‘i 96822

EXEMPT PROCUREMENTSEXEMPT PROCUREMENTS

The following procurements are exempt under HRS 103D:

1) Disbursement of funds for, or subsidies, or purchases of services as defined in Sections 42F-101, HRS and 103F-101, HRS;

2) Payments to or on behalf of public officers and employees for salaries, fringe benefits, professional fees, or reimbursements provided for by administrative procedure;

3) Payment of obligations that the University is required to pay by law, including paying fees, permanent settlements, subsidies, or other claims, making refunds, and returning funds held by the University as trustee, custodian, or bailee;

EXEMPT PROCUREMENTS EXEMPT PROCUREMENTS (continued)(continued)

4) Disbursement of funds for entitlement programs, including public assistance, unemployment, and workers compensation programs, established by state or federal law;

5) Payment of dues or fees of professional organizations of which the University or its officers and employees are members as provided in these procedures;

6) Disbursement of funds for deposit, investment, or safekeeping, including expenses related to their deposit, investment, or safekeeping;

7) Disbursement of funds to governmental bodies of the State of Hawaii;

EXEMPT PROCUREMENTS EXEMPT PROCUREMENTS (continued)(continued)

8) Disbursement of funds as loans, under loan programs administered by the University a governmental body;

9) Procurement of goods, services, or construction from a governmental body, including other than the University of Hawaii bookstores, from the federal government, or from another a state or its political subdivisions, and foreign governments;

10) Procurement of goods and services for the Office of Intercollegiate Athletics of the University of Hawaii at Manoa with moneys from the University of Hawaii at Manoa intercollegiate athletics revolving fund;

11) Services of expert witnesses and all other expenses related to for potential and actual litigation of legal matters involving the University or its officers and employees, including administrative and quasi-judicial proceedings;

12) Works of art for museum or public display;

13) Research, reference, and educational materials including books, maps, periodicals, and pamphlets, which are published or available in print, video, audio, magnetic, or electronic form, including web-based databases;

14) Opponents for athletic contests;

EXEMPT PROCUREMENTS(continued)

EXEMPT PROCUREMENTS EXEMPT PROCUREMENTS (continued)(continued)

15) Utility services whose rates or prices are fixed by regulatory processes or agencies;

16) Performances, including entertainment, speeches, and cultural and artistic presentations;

17) Goods and services for commercial resale by the University;

18) Services of printers, rating agencies, support facility providers, fiscal and paying agents, and registrars for the issuance and sale of the University's bonds;

EXEMPT PROCUREMENTS EXEMPT PROCUREMENTS (continued)(continued)

19) Travel arrangements purchased by the University of Hawaii for its intercollegiate athletics programs;

20) Services of lecturers, speakers, trainers, and scriptwriters;

21) Subgrants and subcontracts to organizations directed by the funding agency (Refer to Section A8.290);

22) Materials, supplies, and foodstuffs purchased for use by students in instructional programs when the type or amount required must be determined as part of the course curriculum;

EXEMPT PROCUREMENTS EXEMPT PROCUREMENTS (continued)(continued)

23) Affiliation agreements with hospitals and other health care providers required for University of Hawaii clinical education programs;

24) Purchases made under cooperative purchasing agreements in which the University participates with other educational institutions and/or other governmental purchasing jurisdictions;

25) Educational material used in University courses, libraries, and employee training including textbooks, workbooks, visuals, kits, guides, and tests, in print, video, audio, magnetic, or electronic form;

EXEMPT PROCUREMENTS EXEMPT PROCUREMENTS (continued)(continued)

26) Insurance or insurance broker services;

27) Animals and plants;

28) New or used items which are advantageous and available on short notice through an auction, bankruptcy, or foreclosure;

29) Food and fodder for animals;

30) Rental of hotel facilities Facility costs for conferences, meetings, and training sessions;

EXEMPT PROCUREMENTS EXEMPT PROCUREMENTS (continued)(continued)31) Advertisements in specialized

publications, such as in ethnic or foreign language publications, and trade publications, professional publications;

32) Professional consultant services as required under Chapter 658, HRS;

33) Services for the publication of scholarly and educational books and journals which shall be limited to:

a) Manuscript evaluation, copy

editing, proofreading, indexing,

design, manuscript clean-up,

page make-up, and typesetting;

EXEMPT PROCUREMENTS EXEMPT PROCUREMENTS (continued)(continued)

33) (continued)

b) Design, production, and printing

of promotional materials, and

commission sales representation;

c) Warehouse storage and fulfillment

services, and

d) Editorial and production services,

including printing and binding,

when full publication services are

required for projects too difficult

or too time consuming to

produce in-house;

34) Interpreter services;

EXEMPT PROCUREMENTS EXEMPT PROCUREMENTS (continued)(continued)35) Publication of scholarly papers in

specific professional journals;

36) Medical services for injured student athletes. These services include but are not limited to:

a) Treatment by out-of-state

medical health professionals

when athletes are on the road

for games;

b) Treatment for a difficult to

diagnose and/or longstanding

medical condition by a series of

medical health professionals by

referrals;

EXEMPT PROCUREMENTS EXEMPT PROCUREMENTS (continued)(continued)

36) (continued)

c) Treatment by a physician when

athlete is referred by the team

physician or by any one of the

volunteer physicians;

d) In-patient or out-patient surgical

services performed by a

physician assigned to an athlete

by a hospital; and

e) Treatment by a family physician

as requested by a student

athlete;

37) Medical services for research

projects;

EXEMPT PROCUREMENTS EXEMPT PROCUREMENTS (continued)(continued)

38) Procurement of repair services when dismantling is required to assess the extent of repairs;

39) Radio and television airtime, print and other media when selection is to be made by current audience/reader demographics;

40) Registration fees for conferences, seminars, etc.;

EXEMPT PROCUREMENTS EXEMPT PROCUREMENTS (continued)(continued)

41) Legal services of attorneysServices of attorneys employed or retained to advise, represent, or provide other legal service to the University, on matters arising under the laws of another state or foreign country, or in an action brought in another state, federal, or foreign jurisdiction, when substantially all legal services are expected to be performed outside this State;

42) Rental of booth space for exhibits at conventions and trade shows when organized by a single sponsor;

EXEMPT PROCUREMENTS EXEMPT PROCUREMENTS (continued)(continued)

43) Consultant services to study or review University programs and/or operations; and Specific procurements expressly exempt from any or all of the requirements of Chapter 103D, HRS, by reference in state or federal law to provisions of Chapter 103D; and

44) Procurement of goods and services from the University of Hawaii Bookstores. Any other goods or services which the State Procurement Policy Board determines in writing is available from multiple sources but for which procurement by competitive means is either not practicable or not advantageous.

COMPETITIVESEALED BIDDING

APM SECTION A8.235

AND

COMPETITIVE SEALED PROPOSALSAPM SECTION A8.240

CCOMPETITIVE BIDDINGOMPETITIVE BIDDING

Advertised bidding threshold for UH purchases (currently at $100,000 for most purchases) will be $25,000

Alternative procedure for Procurement of Commodity Goods and Services (via SuperQUOTE) eliminated

COMPETITIVE BIDDINGCOMPETITIVE BIDDING(continued)(continued)

Preferences will be applicable to UH IFBs and RFPs to promote Hawaii businesses in competing for UH contracts. Examples of such preferences are:

Hawaii Products;

Hawaii Printing and Binding Work;

Recycled Products;

Hawaii Software Development

Business; and

Hawaii Taxpayers

COMPETITIVE BIDDINGCOMPETITIVE BIDDING(continued)(continued)

For competitive requests for proposals, award of contract is to be posted for five days and non-selected offerors may request debriefing by UH personnel on basis for contract award

PROFESSIONAL SERVICES

APM SECTION A8.245

PROFESSIONALPROFESSIONALSERVICESSERVICES

These services would include architects, engineers, accountants, and attorneys

Annual public notice to invite statements of qualifications from interested persons in particular professions

Review and selection committees to be established

PROFESSIONAL SERVICESPROFESSIONAL SERVICES(continued)(continued)

Selection criteria to be used and relative weighting of such criteria for evaluation purposes established by HRS 103D (1. Experience 2. Past Performance 3. Ability to perform in required time)

Contracts over $5,000 to be posted electronically within 7 days of award and remain posted for one year

Non-selected professional service providers may request debriefing by UH personnel on reasons for non-selection

SOLE SOURCE

APM SECTION A8.255

SOLE SOURCESOLE SOURCE

Sole source procurements below $25,000 may be approved by fiscal officers within the limits of delegated purchasing authority (not subject to posting)

Requests for sole source procurement of $25,000 or more to be submitted to OPRPM for approval by UH President as CPO (OPRPM Form 65)

SOLE SOURCESOLE SOURCE(continued)(continued)

Proposed sole source purchases required to be posted for a period of 7 days prior to purchase to permit submission of possible objections (OPRPM Form 110)

Amendments to sole source contracts which change original scope or increase contract price by 10% or more require new request, 7 day posting (OPRPM Form 111), and approval by President as CPO

SOLE SOURCESOLE SOURCE(continued)(continued)

The annual renewal of a sole source contract for services must be submitted as a new request

List of pre-approved sole source procurements to be consistent with HARs

OPRPM Form 65 (Rev. 01/2005)

Request for Sole Source PURPOSE: This form must accompany requests for the sole source procurement of goods, services or construction (purchases from price lists excepted). The purpose of sole source justification is to show that competitive procurement is impractical because only one product or service can meet a specific need and that one product or service is available from only one source. Therefore, an equitable evaluation of comparable products or services, must be made and documented by the requestor which shows that rejection of other products or services is based solely on their failure to meet that need. In cases where no other comparable source can be identified, a technical description of the product or service requested and a listing of those companies which were considered as alternate sources must be provided. Sole source justification cannot be based on quality or price because quality can be a subjective evaluation based on opinion and price considerations should be evaluated via competitive quotations.

INSTRUCTIONS: 1) Type this form. 2) Complete all sections. 3) Provide full explanations, complete descriptions, and/or list all relevant reasons as requested. 4) Sign and date the form. 5) Improperly completed, and/or unsigned forms may be returned to the sender. 6) Reference Administrative Procedure A8.255.

To: ______________________________ Date: _________________ Name of Fiscal Officer

From: ______________________________ Telephone No.: ____________ Name of Principal Investigator, Department Head, Administrator

Dept.: _____________________________________________________

Contractor: _____________________________________________________ Subject: Sole Source Justification (APM, Section A8.255)

Description ______________________________________________

Amount ________________________________________________

Prior Sole Source Reference No.(s), if any: _____________________________

Statement:

Sole Source procurement is provided for in APM, Section A8.255, when there is only one source for the required goods, services or construction. I am requesting sole source procurement based on the following criteria. (Attach additional sheets as necessary):

I. The requested goods, services or construction have unique or special design/performance features, characteristics or capabilities which are essential and required in order to accomplish my objective. Both A and B portions of this category must be answered.

A. These features and reasons why each is essential to my needs are:

Continued on back

B. In addition to the goods, services or construction requested, I have contacted other suppliers and considered their product or service of similar capabilities. I find their product or service unacceptable for the following reasons (identify companies contacted, model number, if applicable, and specific technical deficiency):

II. If sole source approval is deferred or denied, it will have the following impact on the program/project:

III. The requested product or service is available only from:

__________________________________________________________ _____________________________________________________________ Certification: I certify that the information provided herein is true and correct to the best of my knowledge.

_________________________________________ Full Name of Principal Investigator, Department Head, or Administrator

_________________________________________ ________________ Signature Date

APPROVED / DISAPPROVED:

_________________________________________ ________________ Fiscal Officer / Director, Office of Procurement and Real Property Management (if applicable) Date

APPROVED / DISAPPROVED:

_________________________________________ ________________ President, University of Hawai‘i (if applicable) Date

OPRPM Form 110 (Rev. 01/2005)

Date Notice Posted ________________ (OPRPM use only)

UNIVERSITY OF HAWAI‘I

NOTICE OF SOLE SOURCE Item(s) to be purchased: Description and quantity of item(s): Qty. Description Party to be awarded:

Address:

City: State: Zip Code:

Date Contract to be issued: (OPRPM use only)

Procurement Specialist: (OPRPM use only)

ANY PERSON WISHING TO FILE WRITTEN OBJECTIONS TO THE ISSUANCE OF THE CONTRACT SHALL FILE THEIR OBJECTIONS WITH THE UNIVERSITY OF HAWAI‘I, OFFICE OF PROCUREMENT AND REAL PROPERTY MANAGEMENT, 1400 LOWER CAMPUS ROAD, ROOM 15, HONOLULU, HAWAII 96822, WITHIN SEVEN (7) CALENDAR DAYS FROM THE DATE THIS NOTICE WAS POSTED.

OPRPM Form 111 (Rev. 01/2005)

Date Notice Posted ___________________ (OPRPM use only)

UNIVERSITY OF HAWAI‘I

NOTICE OF AMENDMENT TO SOLE SOURCE CONTRACT Purchase Order No./Contract No.: _________________

Item(s) purchased: ___________________________________________ Description of the proposed amendment: Party to be awarded: __________________________________________

Address: __________________________________________________

City: __________________ State: ______________ Zip Code: _________

Date Contract to be issued: ______________________________________ (OPRPM use only)

Procurement Specialist: _____________________________ (OPRPM use only)

ANY PERSON WISHING TO FILE WRITTEN OBJECTIONS TO THE ISSUANCE OF THE AMENDMENT TO SOLE SOURCE CONTRACT SHALL FILE THEIR OBJECTIONS WITH THE UNIVERSITY OF HAWAI‘I, OFFICE OF PROCUREMENT AND REAL PROPERTY MANAGEMENT, 1400 LOWER CAMPUS ROAD, ROOM 15, HONOLULU, HAWAII 96822, WITHIN SEVEN (7) CALENDAR DAYS FROM THE DATE THIS NOTICE WAS POSTED.

EMERGENCY PROCUREMENT

APM SECTION A8.260

EMERGENCY EMERGENCY PROCUREMENTPROCUREMENT

Fiscal Officers authorized to approve emergency expenditures less than $25,000 and falling within their purchasing authority.

EMERGENCY EMERGENCY PROCUREMENTPROCUREMENT

(continued)(continued)

Emergency procurement can be considered when:

1) Situation of unusual andcompelling urgency existswhich threatens healthand safety; and

2)Situation creates an immediate need for goods, services, or construction that cannot be met through normal procurement methods

EMERGENCY EMERGENCY PROCUREMENTPROCUREMENT

(continued)(continued)

Emergency purchases exceeding $25,000 to be submitted to OPRPM for approval by UH President as CPO (OPRPM Form 152)

OPRPM Form 152 (01/2005)

UNIVERSITY OF HAWAI‘I REQUEST FOR EMERGENCY PROCUREMENT

TO: Office of Procurement and Real Property Management

FROM: ___________________________________________________ (Department/Program) Pursuant to APM Section A8.260, the Department requests approval for this emergency procurement. Date: After the fact: Yes No Nature of the Emergency: Vendor: Amount:

Description and purpose of goods, services, or construction to be purchased:

Reason for Vendor Selection:

Direct questions to: _________________________ Phone: ______________

I certify that the information provided above is, to the best of my knowledge, true and correct.

____________________________ _________________________

Full Name of Principal Investigator, Signature Date Department Head, or Administrator Approved:

____________________________ _________________________

Full Name of Fiscal Officer Signature Date

OPRPM Notes:

APPROVED DISAPPROVED ____________________________ President, University of Hawai‘i Date

SMALL PURCHASES

APM SECTION A8.250

SMALL PURCHASESSMALL PURCHASES Dollar threshold for small

purchases will be reduced to purchases less than $25,000

SuperQUOTE can still be used for solicitation of quotations for small purchases

Dollar Amount Type of Quotations Solicited

0 - $2,500.00 Electronic quotations via SuperQUOTE are recommended but not required.

$2,500.01 - $100,000

$24,999.99

All electronic quotations via SuperQUOTE.

SPECIALIZED PURCHASING

APM SECTION A8.265

SPECIALIZED SPECIALIZED PURCHASINGPURCHASING

Purchases of goods/services from UH Bookstores formerly treated as exempt procurements

HRS 103D expressly provides that purchases from UH Bookstores are excluded from the exemption for purchases from other governmental bodies

Effective January 1, 2005, purchases from UH Bookstores will be subject to competitive solicitation requirements set forth in the UH Small Purchase Procedures (A8.250)

CONTRACT ADMINISTRATION

APM SECTION A8.275

CONTRACT CONTRACT CERTIFICATIONSCERTIFICATIONS

Presently, UH is required to obtain a tax clearance from prospective contractors prior to entering into contracts of $25,000 or more

Under HRS 103D, UH will be required to secure the following additional certifications from prospective contractors:

1) Certificate of Compliance with State labor laws (worker’s compensation,unemployment insurance, etc.) issued by DLIR; 2) Certificate of Good Standing issued by DCCA; and

3) Certificate of Compliance for final payment

CONTRACT CONTRACT CERTIFICATIONSCERTIFICATIONS

(continued)(continued)

The foregoing certifications will need to be secured for contracts as required by HARs (3-122-112)

PROCUREMENT PROTESTS/PROCUREMENT PROTESTS/CONTRACT DISPUTESCONTRACT DISPUTES

Protests concerning a UH procurement action or disputes arising under UH contracts/ purchase orders should be referred to OPRPM if unable to be resolved informally

Such protests/disputes to be decided in accordance with HRS 103D and HAR 3-126

PROCUREMENT PROTESTS/PROCUREMENT PROTESTS/CONTRACT DISPUTESCONTRACT DISPUTES

(continued)(continued)

If a protest is denied by UH, the protestor will have the right to request a hearing with DCCA to contest the denial. No further action can be taken with respect to the procurement until the protest is resolved and/or the decision of the DCCA hearings officer is issued

Contract disputes subject to judicial review in circuit court within 6 months of decision

STANDARDS OF CONDUCT

APM SECTION A8.220.3

PROCUREMENTPROCUREMENTVIOLATIONSVIOLATIONS

HRS 103D/HAR 3-131 apply

Parceling – artificial/intentional division or fragmentation of the purchase of similar or related items into purchases of smaller quantities in order to evade competitive procurement requirements

Civil/Criminal penalties apply for intentional actions which individual knows are contrary to procurement laws and procedures

THE END