Decentralized Decision-Making in the University of Hawaii System



SECTION 27, Act 115, SLH 1998


“The president of the University of Hawaii shall submit to the legislature an annual report of decentralized decision-making in the university system no later than twenty days prior to the convening of each regular session until, and including the regular session of 2003.  The report shall also include the improving of communication and collaboration within the university system.”


Delegation and decentralization actions initiated and executed during the previous two years (copies of 1999, 2000 and 2001 reports to the Legislature are attached) have been continued, and additional measures of delegation and decentralization have been started/implemented.


1.  Delegation of purchasing authority.  The purchasing authority of deans/directors/provosts was increased from $4,000 to $25,000.  Additional changes to the procurement procedures have been submitted for Board of Regent approval.  These changes would increase purchasing authority from $25,000 to $100,000.


2.  A purchasing card system, implemented in March 2000 continues to reduce the amount of paper work in the procurement of small items substantially.  It is estimated that as much as $100 per transaction is saved under this system.  Individuals identified by deans/directors/provosts have been trained and issued cards.  Training and issuance of cards continues for additional personnel.  Beginning in August 2001, the University proceeded with full implementation of the Pcard program.  Currently, there are 225 cardholders making more than 600 transactions per month totaling more than $100,000 per month.  To date, University Pcard holders have made more than 7,000 transactions totaling more than $1,500,000. 


3.  The University co-developed an electronic request for quotation (RFQ) called SuperQUOTE.  The system uses email, an electronic form filler, and the Internet to connect buyers and sellers in a user friendly environment that simplifies the procurement process for both the buyer and seller.  With the new system, all registered vendors are notified of the request and can submit bids.  Based on an analysis of bid data, the University has benefited from more aggressive pricing and an average savings of 10.68% to 14.07%.  The City and County has been so impressed by the system that it decided to implement it on November 1, 2001.


4.   A reorganization has separated the Chancellor of the University of Hawai‘i at Manoa from the Presidency of the University of Hawai‘i.  This has resulted in a more direct channel of communication


5.      Open communications sessions for students, faculty and staff are held regularly by the President and the  respective Chancellors at all campuses.


6.      Work is progressing to revise the Administrative, Professional and Technical employees (APT) classification plan which would delegate selected decision making to Chancellors or designees.


7.      Work has started to revise the APT compensation plan to delegate initial hire salary placement above the minimum and special salary adjustments to Chancellors or designees.


8.      Negotiations have been initiated to delegate Steps 2 (UPW) and 3 (HGEA) Grievance Decision-making (steps prior to arbitration) to Chancellors or designees.