Administrative Procedure 8.281 Administrative Procedure 8.281

Title

I.  Purpose and Authority

II.  Policy

III.  Executive Summary

IV.  Definitions

• Office of Project Delivery;
• Community Colleges Facilities Planning and Construction Office;
• University of Hawai‘i at Hilo Facilities Planning and Construction Office;
• University of Hawai‘i, West O‘ahu Planning and Design Office; and
• the following University of Hawai‘i at Mānoa Offices:  Office of Campus Operations and Facilities, Student Housing Facilities Office and Campus Center Facilities Office.

V.  Delegation of Authority

VI.  Delegation and Training Requirements

Policy

Delegation Procedure

Training Procedure

VII.  Facilities Office Approval

1. All requests for Construction of a University-owned facility, 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.) Approval is not required for any construction related to a facility that is not owned by the University.


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

• Small Purchase of Goods, Services or Construction (HRS §103D-305)
• Competitive Sealed Bidding (HRS §103D-302)
• Competitive Sealed Proposal (HRS §103D-303)
• Professional Services (HRS §103D-304)
• Sole Source Procurement (HRS §103D-306)
• Emergency Procurement (HRS §103D-307)

• 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.

1. Purchases less than $5,000
• Campus Facility Office approval.
• No minimum number of quotations is required.
• Three (3) quotes are required for federally funded purchases $3,500 and over.
• For purchases over $1,500, a valid Contractor’s license issued by the Department of Commerce and Consumer Affairs is required for the work.
• Purchases of $2,000 and over shall comply with Chapter 104, HRS Wages and Hours of Employees on Public Works.
• Purchases of $2,500 and over, a compliant certificate of vendor compliance via HCE dated within the last six (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
• Campus Facility Office approval.
• No less than three (3) quotes shall be solicited. Refer to AP 8.285 when three (3) written quotes cannot be solicited or obtained.
• A valid Contractor’s license issued by the Department of Commerce and Consumer Affairs is required for the work.
• Shall comply with Chapter 104, HRS Wages and Hours of Employees on Public Works.
• 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
• Campus Facility Office approval.
• Based on the University’s specifications, adequate and reasonable competition shall be solicited via SuperQUOTE, the electronic on-line request for quotations system.
• Refer to AP 8.285 when three (3) written quotes cannot be solicited or obtained.
• A valid Contractor’s license issued by the Department of Commerce and Consumer Affairs is required for the work.
• Shall comply with Chapter 104, HRS Wages and Hours of Employees on Public Works.
• A compliant certificate of vendor compliance via HCE dated within the last six (6) months from the date of the purchase order.
• For purchases over $50,000, performance and payment bonds are required.

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 OPM 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 OPM Form 144 and route the signed form to FCO for approval;
3. Special contractual provisions; and
4. Plans (if applicable).

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.

• 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.

• 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.

• 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.

• 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 (Prof. Services), “Individual Evaluation Form,” and Form FCO-004, “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

• 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.

• 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”.

• 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.

• 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 understanding of the firm’s qualifications relevant to the Department’s requirement.
• The Selection Committee may 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.

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.

• 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.

• 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.

• 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.
• If the work does not appear on the list of Procurements approved for sole source in Chapter 3-122, HAR, the Department shall also submit a completed OPM Form 65, “Request for Sole Source” and OPM Form 110, “University of Hawai‘i Notice of Sole Source”. OPM Form 65 shall be signed by the Vice President or Vice Chancellor for the requesting Department.

1. 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.
2. If disapproved, the Department shall seek an alternative method of procurement for the requirement.

• 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.

• 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.

IX.  Contract Administration and Closeout

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

• A completed OPM Form 127b, “Completion Report,” for projects $25,000 and greater;
• a copy of the final payment; and
• HCE certificate of vendor compliance in accordance with HRS §103-53, and other contractual documents

Approved

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