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Administrative Procedure 8.281 Administrative Procedure 8.281

Title

Construction and Professional Services in Support of Construction

Administrative Procedure Chapter 8, Business and Finance
Administrative Procedure AP8.281, Construction and Professional Services in Support of
Construction
Effective Date:  October 2019
Prior Dates Amended:  July 2018, January 2018, May 2017
Responsible Office:  Office of the Vice President for Administration
Review Date:  October 2022
Notes of Revision/Approval Form:  October 2019 Notes, July 2018 Notes, January 2018 Notes, May 2017 Notes

I. Purpose and Authority

This Administrative Procedure sets forth the policy and procedures that govern University procurements of Construction and Professional Services in support of Construction.  This includes delegation of authority, training requirements, methods of Construction and Professional Services procurement, contract administration and closeout.  Under the authority of the President, this procedure outlines the management of Construction and Professional Services procurements through the Facilities and Contracts Office (FCO) which is a section of the Facilities Business Office (FBO).

II. Policy

University purchases of Construction and Professional Services in support of Construction shall ensure full and open competition and equitable treatment of potential sources in the procurement process by utilizing sound procurement procedures to ensure public funds are expended properly and in an ethical manner.

III. Executive Summary

This procedure delegates authority and sets forth the process for procuring Construction and Professional Services in support of University capital programs and facilities projects in a manner compliant with law. 

IV. Definitions

“Campus Facilities Office” means the University of Hawai‘i at Hilo Facilities Planning and Construction Office; University of Hawaii West Oahu Planning and Facilities Office; Community Colleges Facilities Planning and Construction Office; and the following University of Hawai‘i at Mānoa Offices:  Office of Campus Operations and Facilities or Office of Project Delivery (Mānoa Facilities Offices), Student Housing Facilities Office, or Campus Center Facilities Office.

“CPO” means the “Chief Procurement Officer” responsible for procuring or supervising the procurement of all goods, services, and Construction for their respective jurisdiction.  The Chief Procurement Officer for the University of Hawai‘i is the President. 

“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.  Examples include work such as painting, carpet installation/removal, window treatment installation/removal, signage and lighting.

“Department” means the department representative responsible for the project procurement and coordinating with FCO concerning the procurement, awarded contract, and post-award contract administration. 

“Departmental Facilities Office” means a facilities office at the University of Hawai‘i that is not a Campus Facilities Office.

“Fiscal Administrator” (FA) means the individual delegated purchasing authority for purchases under $25,000.  This individual has the responsibility to verify that procurements under their purchasing authority complies with the purchasing laws, rules and University policy.  The FA is the Procurement Officer for these purchases.

“FBO” means the Facilities Business Office which reports directly to the Vice President for Administration.  The FBO oversees the Facilities and Contracts Office (FCO).

“FCO” means the Facilities and Contracts Office which is overseen by the Facilities Business Office (FBO).

“HAR” or Hawai‘i Administrative Rules means the rules promulgated pursuant to requirements of the Hawai‘i Revised Statutes Chapter 91 which have the force and effect of law.

“HCE” means Hawai‘i Compliance Express which issues the certificate of vendor compliance as required under Section 103D-310, HRS to verify vendor compliance  with State Department of Taxation, Internal Revenue Service, State Department of Labor and Industrial Relations and State Department of Commerce and Consumer Affairs.

“HRS” or Hawai‘i Revised Statutes means the laws enacted by the Hawai‘i state legislature. 

“KFS” means Kuali Financial System which is the University of Hawai‘i’s financial system of record.

“OPM” means the Office of Procurement Management, formerly known as the Office of Procurement and Real Property Management (OPRPM).

“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.  See AP 8.245 for policy and procedures for the procurement of professional services not related to construction.

“SuperQUOTE” means the electronic online request for quotation system.  Information may be accessed at www.commercepoint.com.

V. Delegation of Authority

In accordance with Executive Policy 8.105, the Vice President for Administration and  designees are delegated authority to carry out the responsibilities relating to the procurement of goods, services, and construction for the University of Hawai‘i, consistent with applicable law and Board of Regents policies, and to execute contractual documents relating to such procurement actions.

The Vice President for Administration hereby delegates authority to the following designees to carry out responsibilities relating to the procurement of goods, services and Construction for the University of Hawai‘i and to execute contractual documents related to such procurement actions as indicated below:

FBO Facilities Contract Manager is hereby delegated authority, not to exceed one million dollars, relating to the procurement and execution of contractual documents for all University procurements of Construction and all Professional Services, and other contracts, in support of Construction.

Fiscal Administrators who have been delegated with construction procurement authority up to $25,000 will be responsible for all procurement and construction related requirements.

VI. Delegation and Training Requirements

Policy

Prior to conducting, approving, or participating in any procurement for Construction or Professional Services provided by licensees under HRS Chapter 464, University personnel shall have written delegated procurement authority and completed the applicable mandatory training for HRS Chapter 103D.

Delegation Procedure

Form SP0-036UH, “Procurement Delegation” shall be used for new delegations and for any changes to current personnel delegated procurement authority, and shall be submitted to FCO for signature by the President. Personnel are required to retain all procurement delegation submittal forms consisting of the Procurement Delegation Form SPO-036UH.  Instructions regarding how to complete the Form SPO-036UH can be found in the Form SPO-36UHi, “Instructions.”

Training Procedure

Procurement officers and personnel who conduct or participate in the procurement process are required to attend SPO training workshops applicable to the procurement method. Most of the training workshops are conveniently available online and “on-demand.” More information on training requirements can be found at http://spo.hawaii.gov/for-state-county-personnel/training/. Personnel shall maintain a record of their “Training Self-Certifications” for each completed training and forward a copy to FCO. 

FCO will be the responsible agency for maintaining delegation and training records required by this procedure.  Any questions concerning these requirements shall be directed to FCO.

VII. Facilities Office Approval

  1. All requests for Construction, regardless of the dollar amount, requires pre-approval by the Campus Facilities Office or an approved Departmental Facilities Office (see Paragraph (C) below) of the scope of work before procurement.  This includes any alteration of the facility.  (See the definition of “construction” for examples of construction work.)

  2. Upon receipt of approved plans, specifications and quotations from the appropriate Campus Facilities Office or an approved Departmental Facilities Office, fiscal administrators are authorized to issue purchase orders for Construction requirements within their purchasing authority. Purchases of Construction exceeding a fiscal administrator's purchasing authority should be directed to the appropriate Campus Facilities Office or approved Departmental Facilities Office for processing.

  3. If a Departmental Facilities Office has demonstrated sufficient expertise, responsibility, and staffing to process Construction projects at its own direction, the Mānoa Facilities Office may, with the concurrence of the Vice President for Administration, delegate responsibility to such Departmental Facilities Office to administer such Construction without review by the Mānoa Facilities Office through a signed Memorandum of Agreement (MOA), see MOA template.  The Mānoa Facilities Office will be kept informed of all Construction activities initiated by the Departmental Facilities Office.  FCO shall be advised in writing by the Mānoa Facilities Office of the terms and conditions of any such delegations.


VIII. Methods of Procurement

Policy

Professional Services for design professionals licensed under Chapter 464, HRS shall be procured utilizing the procurement methods described in HRS §103D-304 or HRS §103D-307, if applicable.

Construction shall be procured utilizing one of the five (5) procurement methods available under Chapter 103D, HRS and also in compliance with AP 8.285 Cost or Price Reasonableness. The procurement methods are listed below along with their statutory reference:

A. SMALL PURCHASES

POLICY

The small purchase method of procurement shall be used when:
  • The purchase has an estimated value of less than $250,000;
  • Requirements can be described in finite and specific detail;
  • The contract or purchase order will be awarded to the lowest responsive and responsible offeror;
  • The resulting contract or purchase order will be firm-fixed price or lump sum; and
  • Competition is readily available.

Purchases of Construction services utilizing the small purchase method of procurement shall be in accordance with HRS §103D-305, HAR Chapter 3-122,  Subchapter 8.  A Request for Quotation (RFQ) shall be issued, and shall include a purchase description and all terms and conditions applicable to the procurement.  The purchase order or contract shall be awarded to the lowest responsible and responsive bidder whose quotation meets the requirements and criteria set forth in the RFQ. 

Procedure

University personnel seeking to procure Construction utilizing the small purchase method of procurement shall coordinate the procurement with FCO. 

Step 1. Based on the dollar amount of the purchase, solicitation of quotations shall be made in accordance with the following requirements:

  1. Purchases less than $5,000
    1. Campus Facility Office approval.
    2. No minimum number of quotations is required.
    3. 3 quotes are required for federally funded purchases $3,500 and over.
    4. For purchases over $1,000, a valid Contractor’s license issued by the Department of Commerce and Consumer Affairs is required for the work.
    5. Purchases of $2,000 and over shall comply with Chapter 104, HRS Wages and Hours of Employees on Public Works.
    6. Purchases of $2,500 and over, a compliant certificate of vendor compliance via HCE dated within the last 6 months from the date of the purchase order.

  2. Purchases of $5,000 ($3,500 for federally funded purchases) to Less Than $15,000
    1. Campus Facility Office approval.
    2. Based on the University’s specifications and with adequate and reasonable competition, three written quotations should be obtained.  Refer to AP 8.285 when three written quotes cannot be obtained.
    3. A valid Contractor’s license issued by the Department of Commerce and Consumer Affairs is required for the work.
    4. Shall comply with Chapter 104, HRS Wages and Hours of Employees on Public Works.
    5. A compliant certificate of vendor compliance via HCE dated within the last 6 months from the date of the purchase order.

  3. Purchases of $15,000 to Less Than $250,000
    1. Campus Facility Office approval.
    2. Based on the University’s specifications, adequate and reasonable competition shall be solicited via SuperQUOTE, the electronic on-line request for quotations system.
    3. A valid Contractor’s license issued by the Department of Commerce and Consumer Affairs is required for the work.
    4. Shall comply with Chapter 104, HRS Wages and Hours of Employees on Public Works.
    5. A compliant certificate of vendor compliance via HCE dated within the last 6 months from the date of the purchase order.
    6. For purchases of $50,000 or more, performance and payment bonds are required.

If a purchase has an estimated value of $25,000 or more, University personnel may issue the RFQ, or may request FCO’s assistance in issuing the RFQ.

Step 2.  If the purchase is $25,000 or more, the procurement shall be submitted to FCO for review, as follows:

  1. If an RFQ has been issued, the following documents shall be attached in KFS:
    1. Purchase Order completed to the extent possible;
    2. Copy of the RFQ issued, including:
      1. Technical specifications
        1. Brand name or specifications restrictive of competition shall not be used without prior approval.  University personnel shall utilize OPRPM Form 144, “Sole Brand Justification” and route the signed form to FCO for approval;
      2. Plans (if applicable);
      3. Terms and conditions including, but not limited to, Contractor license, bonds, and insurance required;
      4. All attachments included with the RFQ;
    3. Summary of the quotations received;
    4. Copy of all quotations received; and
    5. Signed quotation from the vendor that the RFQ was awarded to.

  2. If the Department is requesting FCO’s assistance in issuing the RFQ on its behalf, the following documents shall be emailed to fbo@hawaii.edu:
    1. Form FCO-001, “Request for Procurement Services”
    2. Technical Specifications
      • Brand name or specifications restrictive of competition shall not be used without prior approval.  University personnel shall utilize OPRPM Form 144 and route the signed form to FCO for approval;
    3. Special contractual provisions; and
    4. Plans (if applicable).

Step 3.  FCO Review

  1. If an RFQ has been issued, FCO will review the solicitation to ensure compliance.  If FCO finds that the RFQ was completed properly, FCO will:
    1. Obtain insurance and bonds from the awarded vendor (if applicable);
    2. Obtain a current certificate of compliance for the awarded vendor; and
    3. Issue the purchase order or contract to the vendor.

  2. If the Department is requesting FCO’s assistance in issuing the RFQ on its behalf, FCO will prepare and issue the RFQ on SuperQUOTE; receive all quotations; and forward all quotations to the Department for review once the RFQ closes.

    The Department shall review the quotations received, and prepare a purchase order in KFS to recommend award.

    FCO will:
    1. Obtain insurance and bonds from the awarded vendor (if applicable);
    2. Obtain a current certificate of compliance for the awarded vendor; and
    3. Issue the purchase order or contract to the vendor.

B. Competitive Sealed Bidding

Policy

Competitive sealed bidding is the most commonly utilized method of procurement and is most appropriate when:

  • Requirements can be described in finite and specific detail;
  • The contract will be awarded to the lowest responsive and responsible bidder;
  • The resulting contract will be firm-fixed price or lump sum;
  • Competition is readily available; and
  • Discussions with bidders is not necessary to select the winning bid.

Purchases of Construction services utilizing the competitive sealed bidding method of procurement shall be in accordance with HRS §103D-302 and HAR Chapter 3-122, Subchapter 5.  Invitation for Bids (IFB) shall be issued, and shall include a purchase description and all contractual terms and conditions applicable to the procurement.  The contract shall be awarded to the lowest responsive and responsible bidder whose bid meets the requirements and criteria set forth in the IFB.

Procedure

University personnel seeking to procure Construction utilizing the competitive sealed bidding method of procurement shall coordinate the procurement with FCO.

Step 1. The Department should obtain proper approvals and the Fiscal Administrator should identify availability of fund(s) by signing the Form FCO-001, “Request for Procurement Services”.

Step 2.  Departments shall email the Form FCO-001, and all required documents to fbo@hawaii.edu.

Step 3.  FCO will review the bid package and, if sufficient, shall advertise the bid in accordance with HAR §3-122-16.02(a)(1), for a minimum of ten (10) calendar days in the electronic procurement system.  Any deficiencies in the bid package will be coordinated with the Department.

Step 4.  For Construction projects with a total estimated contract value of $500,000 or more,  the Department shall hold a pre-bid conference at least fifteen days prior to the bid due date pursuant to HAR §3-122-16.05.

Step 5.  FCO shall coordinate all questions received from bidders with the Department.  FCO shall issue any answers or changes to the IFB via an addendum through the electronic procurement system.

Step 6.  FCO shall review all bids for conformance with the IFB and other legal requirements and forward the results to the Department seeking recommendation of award.

Step 7.  The Department shall review the bid results and shall submit the Form FCO-007, “Recommendation to Award,” and shall email all documents required for contract award to fbo@hawaii.edu for action. The Department’s Fiscal Administrator will record the contract in KFS to create the Purchase Order and provide a copy with the package.
If the Department seeks to cancel the IFB they shall document such cancellation by submitting the Form FCO-007 by email to fbo@hawaii.edu

Step 8.  Upon receipt of the Form FCO-007, FCO shall post the public notice of award, coordinate contract execution, encumber funds and distribute copies to the appropriate personnel.
FCO shall be the sole point of contact for any bidder protest.  Any protest received shall be immediately forwarded to FCO.
FCO shall issue the contract Notice to Proceed after coordination with the Department.

Step 9.  FCO will record and upload pertinent contract information into the University’s Project Tracking System.

C. Competitive Sealed Proposals

Policy

Use of the competitive sealed proposals method of procurement is most appropriate when:

  • The primary consideration in determining award may not be price;
  • The contract may be other than a firm fixed-price type;
  • The scope, plans, specifications, and/or delivery requirements for the goods, services, or Construction cannot be sufficiently described in the solicitation;
  • Oral or written discussions with offerors may be needed to gain a better understanding of the technical and price aspects of their proposals;
  • After discussions, priority-listed offerors may need the opportunity to revise their proposals, including price; or
  • In order to determine the most advantageous offering to the University, a comparative evaluation wherein the allocation of point values between price, and other non-price factors such as quality, schedule and contractual considerations may be required as set forth in the RFP.

Purchases of Construction services utilizing the competitive sealed proposals method of procurement shall be in accordance with HRS §103D-303 and HAR Chapter 3-122, Subchapter 6.  Construction projects may be solicited through a Request for Proposals (RFP) including projects using the design-build project delivery method. Award shall be made to the responsible offeror whose proposal is determined in writing to provide the best value to the University taking into consideration price and the evaluation criteria established in the RFP.

Procedure

University personnel seeking to procure Construction utilizing the competitive sealed proposals method of procurement shall coordinate the procurement with FCO.

Step 1. The Department should obtain proper approvals and the Fiscal Administrator should identify availability of fund(s) by signing the Form FCO-001, “Request for Procurement Services”.

Step 2. Departments shall email the Form FCO-001, and all required documents to fbo@hawaii.edu.

Step 3.  FCO will review the proposal package and, if sufficient, shall advertise the proposal via the University electronic procurement system, in accordance with HAR §3-122-16.02(b)(2), for a minimum of thirty (30) calendar days, unless the Procurement Officer makes a written determination that a shorter time will provide for adequate competition.

Step 4.  For Construction projects with a total estimated contract value of $100,000 or more, the Department shall hold a pre-proposal conference at least fifteen days prior to the proposal submission date pursuant to HAR §3-122-16.05.

Step 5.  FCO shall coordinate all questions or requests for clarification received from offerors with the Department.  FCO shall issue any answers or changes to the RFP via an addendum utilizing the University’s electronic procurement system.

Step 6.  FCO shall time stamp all proposals received in response to the RFP via the University electronic procurement system until the due date and time. FCO shall return any proposals received after the due date and time stated in the RFP unopened.

Step 7.  FCO shall not open proposals publicly but shall open them in the presence of two or more state officials.  Once opened FCO shall prepare a register of proposals pursuant to HAR §3-122-55.

Step 8.  FCO shall review all proposals for conformance with the RFP and other legal requirements.  Proposals shall be forwarded to the Evaluation Committee for review.

Step 9.  The Evaluation Committee may conduct discussions with responsible offerors for the purpose of clarification to assure full understanding of, and responsiveness to, the solicitation requirements.   
  • Prior to entering into discussions with offerors the Evaluation Committee shall establish a priority list of offerors. To generate the priority list, proposals shall be classified initially as acceptable, potentially acceptable, or unacceptable.
  • All responsible offerors who submit acceptable or potentially acceptable proposals are eligible for the priority list.  When numerous offers are submitted the Evaluation Committee may rank proposals and limit the priority list to at least three responsible offerors submitting acceptable or potentially acceptable proposals.

Step 10:  Proposal revisions are permitted after submissions and prior to award for the purpose of obtaining best and final offers (BAFO). FCO will issue requests for BAFO solely to priority-listed offerors via addendum.  Any subsequent requests for BAFOs shall be pre-approved by the Procurement Officer.

Step 11.  The Evaluation Committee shall evaluate proposals based solely on the evaluation factors and assign point values as set forth in the RFP.
  • Evaluation factors not specified in the RFP shall not be considered.
  • In evaluating the price as an evaluation factor, all applicable preferences shall be applied to the proposals first.  After the preferences are applied, the lowest-priced proposal shall receive the maximum points allowable for the cost factor.  The points allocated to higher-priced proposals should be equal to the lowest proposal price multiplied by the maximum points available for price, divided by the higher proposal price.
  • Evaluation Committees may use Form FCO-003 (RFP), “Individual Evaluation Form,” and Form FCO-004 (RFP), “Summary Evaluation Form,” to document Evaluation Committee results.
  • Once the Evaluation Committee has completed the evaluation and scoring of proposals they shall forward their results to FCO for review

Step 12.  FCO will review documentation provided by the Evaluation Committee for accuracy, sufficiency and conformance with HRS §103D-303.  FCO will notify the Department if any issues or discrepancies are found. If the results of the Evaluation Committee are sufficient FCO will notify the Department and seek recommendation to award. 
Step 13.  The Department shall submit the Form FCO-007, “Recommendation to Award,” and all required documents to FCO for action. Cost and pricing data requirements shall be in accordance with HRS §103D-312.  If the Department seeks to cancel the RFP they shall document such cancellation by submitting the Form FCO-007 by email to fbo@hawaii.edu.
The Department’s Fiscal Administrator will record the contract information in KFS to create the Purchase Order and provide a copy with the package.

Step 14.  Upon receipt of the Form FCO-007, FCO shall post the public notice of award, coordinate contract execution, encumber funds and distribute copies to the appropriate personnel. 
  • FCO will notify the Department should any Offeror request a debriefing in accordance with HRS §103D-303(h).
  • FCO shall be the sole point of contact for any offeror protest. Any protest received shall be immediately forwarded to FCO.
  • FCO shall issue the Notice to Proceed to the awarded offeror after coordination with the Department.

Step 15.  FCO will record and upload pertinent contract information into the University’s Project Tracking System.
 
D. Procurement of Professional Services in Support of Construction

Policy

At a minimum, before the beginning of each fiscal year, the University shall solicit providers of Professional Services to submit statements of qualifications in accordance with HRS §103D-304 and HAR Chapter 3-122, Subchapter 7 for the purpose of establishing a list of qualified professionals.  Selection and ranking of qualified firms shall be in accordance with the selection criteria specified in HRS §103D-304(e) and any other criteria the selection committee determines, in writing, as relevant to the Department’s needs.  Contracts shall be negotiated with the first ranked firm, including a rate of compensation which is fair and reasonable and based upon the estimated value, scope, complexity, and nature of the services to be rendered.
Professional Services furnished by licensees under HRS Chapter 464 shall be procured utilizing the Professional Services procurement method.  Procurement of Professional Services in support of Construction furnished by professionals other than those specified in HRS Chapter 464 may use this method or any other applicable procurement method.  Professional services may be procured utilizing the emergency procurement method only when all elements of an emergency are met.  See, Paragraph F Emergency Procurement below.

Procedure

University personnel seeking to procure Professional Services utilizing the Professional Services method of procurement shall coordinate the procurement with FCO.

Step 1.  Prior to the beginning of each fiscal year, FCO shall gather professional service requirements from University Departments.  FCO shall prepare the yearly notice and post the public notice to the appropriate websites.  The notice will remain open and continuous throughout the fiscal year. 

Step 2.  Review Committee
The President, or designee, shall designate a Review Committee consisting of no less than three persons with sufficient education, training, licenses or credentials for the Professional Services required. 
  • FCO shall document the Review Committee, along with their relevant qualifications, on the Form SPO-044, “Review/Selection Committee Approval,” for the President, or designee, approval.
  • FCO shall ensure Review Committee members execute an attestation of their impartiality and independence on the Form SPO-024, “Attestation Serving on an Evaluation, Review, or Selection Committee”.

Step 3.  Professional Services providers will submit their qualifications questionnaire and letter of interest electronically to be effective for that fiscal year.

Step 4.  FCO will forward a list of the qualifications questionnaires received to the Review Committee for evaluation. 

Step 5.  The Review Committee shall evaluate the statements of qualifications for the purpose of compiling a list of qualified professionals. Recommendations for approval shall be forwarded to FCO for inclusion on the list of qualified professionals.  Once established, Professional Services may be procured from the list of qualified professionals developed by the Review Committee.

Step 6.  Selection Committee
When a Department identifies a need for Professional Services during the fiscal year, the Department shall email the executed Form FCO-001, “Request for Procurement Services,” and all required documents to fbo@hawaii.edu.  The Form FCO-001 shall identify the proposed selection committee members and provide the following documents, as applicable:
  • Completed and signed Form SPO-024 for each proposed Selection Committee member.
  • Short biography of qualifications, credentials and experience relevant to the project for each proposed committee member.

Step 7.  Upon receipt of the Form FCO-001, FCO shall route the Form SPO-044 and Forms SPO-024 to the President, or designee, for approval of the proposed Selection Committee.  FCO will notify the Department upon approval of the Selection Committee.

Step 8.  The Selection Committee shall convene and evaluate the firms on the list and submit the ranking of professionals to FCO. 
  • The Selection Committee should utilize combined Form FCO-003 (Prof. Services), “Individual Evaluation Form,” and Form FCO-004, “Summary Evaluation Form,” to document the Selection Committee results.
  • The Selection Committee may seek expressions of interest or presentations from firms on the qualified list to obtain a better understand of the firm’s qualifications relevant to the Department’s requirement.
  • The Selection Committee should utilize the Form FCO-005, “Selection Committee Memorandum for File,” documenting the evaluation and ranking of a minimum three qualified firms.
  • The Selection Committee shall email the selection documents to fbo@hawaii.edu.
  • FCO shall prepare the Form FCO-006, “Request for Approval of Consultant Selection and Approval to Conduct Contract Negotiations,” to seek delegation of authority, from the President, or designee, to enter into negotiations with the first-ranked firm.
  • FCO will notify the Department of the determination.

Step 9.  The President, or delegated negotiator, shall negotiate a contract with the first-ranked firm in accordance with HRS §103D-304(h).  If agreement cannot be made on scope, schedule, or rate of compensation the negotiator shall request FCO to formally terminate negotiations with the first-ranked firm and commence negotiations with the second-ranked firm and so on until agreement is made. 

Step 10.  Upon completion of negotiations, the Department or delegated negotiator shall email the Form FCO-007, “Recommendation to Award” to fbo@hawaii.edu, and include the following documents, as applicable:
  1. Estimated cost including funding sources.
  2. Copy of Consultant’s fee proposal.
  3. Copy of negotiated contract document.
  4. OPM Form 95 “Determination of Cost or Price Reasonableness,” including selected consultant’s proposal, certified cost/pricing data, if applicable, and summary of negotiations.

The Department’s Fiscal Administrator will record the contract information in KFS to create the Purchase Order and provide a copy with the package.

Step 11.  FCO will review documentation provided by the Department for accuracy, sufficiency and conformance with HRS §103D-304.  FCO will notify the Department if any issues or discrepancies are found. If the Selection Committee results and documentation are sufficient FCO will award the contract. 

Step 12.  Upon receipt of the Form FCO-007, FCO shall post the public notice of award, coordinate contract execution, encumber funds and distribute copies to the appropriate personnel. 
  • FCO will notify the Department should any professional service provider request a debriefing in accordance with HRS §103D-304(k).
  • FCO shall be the sole point of contact for any protest. Any protest received shall be immediately forwarded to FCO.
  • FCO shall issue the Notice to Proceed to the awarded consultant after coordination with the Department.

Step 13.  FCO will record and upload pertinent contract information into the University’s Project Tracking System.

E. Sole Source

Policy

Sole source purchases of Construction shall only be utilized when the requirement meets the conditions of HRS §103D-306 and HAR Chapter 3-122, Subchapter 9.  Sole source Construction procurements may only be made when:
  • The requirement appears on the list of procurements approved for sole source in accordance with HAR §3-122-81; or
  • The requirement has a unique feature, characteristic, or capability essential to the Department to accomplish its work; and
  • The requirement is available from only one supplier or source.

Procedure

University personnel seeking to procure Construction utilizing the sole source method of procurement shall coordinate the procurement with FCO.

Step 1. The Department should obtain proper approvals and the Fiscal Administrator should identify availability of fund(s) by signing the Form FCO-001, “Request for Procurement Services”.

Step 2.  Departments shall seek approval for a sole source procurement by completing OPRPM Form 65, “Request for Sole Source”; OPRPM Form 110, “University of Hawai‘i Notice of Sole Source” and Form FCO-001. OPRPM Form 65 shall be signed by the Vice President or Vice Chancellor for the requesting Department.  These forms shall be emailed to fbo@hawaii.edu for review, recommendation and processing.  Please include the following documents:
  • A requisition and Purchase Order completed to the extent possible or a requisition for encumbrance purposes if a contract is to be issued;
  • A written quotation from the contractor which shall include total price, method of delivery, freight costs, delivery time, insurance, all applicable taxes, and discounts, if any; and
  • OPM Form 95, “Determination of Cost or Price Reasonableness” to verify that price offered is considered fair and reasonable, and certified cost and pricing data in accordance with HRS §103D-312.

Step 3.  FCO will seek approval from the President, or designee as “Department Head”. Once approval has been obtained, FCO will notify the Department. 

Step 4.  FCO will post the form to the procurement website for seven (7) days to allow Contractors the opportunity to review and object to the request for sole source.
  • If in that time no objections are received, FCO will review the justification for the sole source and, if approved, execute the contract or purchase order.
  • If disapproved, the Department shall seek an alternative method of procurement for the requirement.

Step 5.  The Department shall email the Form FCO-007, “Recommendation to Award,” and all required documents to FCO for action.

The Department’s Fiscal Administrator will record the contract in KFS to create the Purchase Order and provide a copy with the package.

Step 6.  Upon receipt of the Form FCO-007, FCO shall post the public notice of award, coordinate contract execution, encumber funds and distribute copies to the appropriate personnel. 

Step 7.  FCO shall issue the Notice to Proceed to the awarded Contractor after coordination with the Department.

Step 8.  FCO will record and upload pertinent contract information into the University’s Project Tracking System.

Step 9.  Departments shall forward to FCO a signed OPRPM Form 111, “University of Hawai‘i Amendment to Notice of Sole Source,” in the same manner as above for any amendments to the original sole source contract. Extensions to existing sole source contracts shall be processed as a new request.

F. Emergency Procurement

Policy

Emergency purchases of Construction and Professional Services shall only be utilized in accordance with HRS §103D-307 and HAR Chapter 3-122, Subchapter 10 and shall only address the immediate needs brought about by the emergency condition. Lack of planning or the potential loss of funds do not constitute an emergency condition.

Emergency procurements may only be made when all the following conditions are met:
  • A situation of an 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 by the President.
  • The emergency condition generates an immediate and serious need for goods, services, or Construction that cannot be met through normal procurement methods and the government would be seriously injured if the purchasing agency is not permitted to employ the means it proposes to use to obtain the goods, services, or Construction.
  • Without the needed good, service, or Construction, the continued functioning of government, the preservation or protection of irreplaceable property, or the health and safety of any person will be seriously threatened.

Procedure

University personnel seeking to procure Construction and/or Professional Services in support of Construction utilizing the emergency method of procurement shall coordinate the procurement with FCO.

Step 1. Prior to award, or if time does not permit, as soon as practicable thereafter, the Department shall seek approval for an emergency procurement by completing OPRPM Form 152, “University of Hawai‘i Request for Emergency Procurement”, and Form FCO-001, “Request for Procurement Services”.  OPRPM Form 152 shall be signed by the Vice President or Vice Chancellor for the requesting Department.  Both forms shall be emailed to fbo@hawaii.edu for review, recommendation and processing.  Please include the following documents:
  • A requisition and Purchase Order completed to the extent possible or a requisition for encumbrance purposes if a contract is to be issued; and
  • A quotation or invoice from the contractor/consultant.

Step 2.  FCO will seek approval from the President. 

Step 3.  If approved, FCO will notify the Department and, coordinate contract execution or purchase order, encumber funds and distribute copies to the appropriate personnel.

If disapproved, the FCO will provide further guidance to the Department.

The Department’s Fiscal Administrator will record the contract in KFS to create the Purchase Order and provide a copy with the package.

Step 4.  FCO will record and upload pertinent contract information into the University’s Project Tracking System.

IX. Contract Administration and Closeout

Policy

After contract award, the University will administer purchases of Construction and Professional Services in a manner to ensure the contract is performed satisfactorily and in a timely manner while ensuring the financial interests of the University are protected. Change orders should be within the scope of the contract and should benefit the University by improving work and or learning environments.  Excess funding should not be a reason to perform additional work.  The FA is responsible for the close-out of contracts for purchase orders less than $25,000.

Procedure

Step 1.  FCO shall be responsible for post-award contracting actions including, but not limited to, the actions listed below for contracts executed by FCO or any other project on a case by case basis.

  1. Issuance of:
    • Notice to Proceed
    • Contract change order(s) and/or modification(s)
    • Extension to the contract term or period of performance
    • Stop work order or suspension
    • Cure notice
    • Show cause letter
  2. Contract novation, name change, or assignment
  3. Imposition of liquidated damages
  4. Terminations for convenience
  5. Terminations for default
  6. Claims or other legal actions
  7. Contractor debarment or suspension

Departments may contact FCO at any time during the contract period of performance with any questions, concerns, or if other support is needed regarding the contract.

Step 2.  Departments shall coordinate all contract change orders and/or modifications affecting cost and/or schedule with FCO by emailing the Form FCO-001, “Request for Procurement Services” and required documents relevant to the action required to fbo@hawaii.eduForm FCO-001 is not required for change orders for projects managed in the University’s Project Tracking System.

Step 3. Upon receipt of the Form FCO-001 or change order notification from the University’s Project Tracking System, FCO shall coordinate execution of the change order or modification (if required), encumber funds and distribute copies to the appropriate personnel.

Step 4.  FCO shall record the contract modification or change order by amending the Purchase Order in KFS.

Step 5.  Prior to contract close out, the Department shall complete and submit an evaluation of the Contractor or Consultant for projects $250,000 and greater, and submit to FCO.  FCO will closely coordinate the maintenance and accessibility of vendor evaluations for use in future procurements. 

Step 6.  When contract performance is completed and accepted by the University, Fiscal Administrators shall email the following to fbo@hawaii.edu to close the contract file:
  • A completed OPRPM Form 127b, “Completion Report,” for projects $25,000 and greater; and
  • HCE certificate of vendor compliance in accordance with HRS §103-53, and other contractual documents


Approved

Signed
Jan Gouveia
October 23, 2019
Date
VP for Admin

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