NOTICE OF PUBLIC HEARINGS
STATE PROCUREMENT OFFICE
STATE OF HAWAII
ON PROPOSED AMENDMENTS TO
HAWAII ADMINISTRATIVE RULES
TITLE 3, CHAPTER 122

Pursuant to the provisions of Chapters 91 and 103D, Hawaii Revised Statutes (HRS), notice is hereby given that the State Procurement Office will hold public hearings at the following islands, dates, times, and locations.

Island Date and Time Location
Oahu February 6, 2008 Keoni Ana Building Videoconference 9:00 a.m. Center
Keoni Ana Building
1177 Alakea Street, Room 302
Honolulu, Hawaii 96813

Hawaii February 6, 2008 Hilo Videoconference Center
9:00 a.m. Hilo State Office Building
75 Aupuni Street, Basement
Hilo Hawaii 96720

Maui February 6, 2008 Wailuku Videoconference Center
9:00 a.m. Wailuku Judiciary Building
2145 Main Street, First Floor
Wailuku, Hawaii 96793

Kauai February 6, 2008 Lihue Videoconference Center
9:00 a.m. Lihue State Office Building
3060 Eiwa Street, Basement
Lihue, Hawaii 96766

The State Procurement Office will receive testimony on proposed rule amendments to Chapter 3-122, Hawaii Administrative Rules (HAR). The proposed rule amendments are to implement the Hawaii Public Procurement Code (Code), Chapter 103D, HRS. The purpose of the Code is to promote economy, efficiency, effectiveness, and consistency in all procurements by the State and the several counties.

Proposed amendments to Chapter 3-122 relate to source selection and contract formation. Creates Subchapter 4.5 for the selection of providers for federal grants; and Subchapter 6.5 for multi-step bidding, which was originally in Subchapter 5. Implements SLH 2003, Act 52: (1) section 2 on pre-bid conferences for construction and design-build projects pursuant to competitive sealed bidding and proposals; (2) sections 4 and 5 on debriefing for non-selected offerors under competitive sealed proposals and for non-selected providers under professional services procurement; and (3) section 6 on producing documents demonstrating compliance with chapters 237, 383, 386, 392, and 393, HRS. Implements Act 216, SLH 2004, Part II to clarify the applicability of the requirements for incorporation or organization under the laws of the State or registering to do business in the State as a separate branch or division to all source selection methods. Requires that all requests for proposals assign a numerical rating system for evaluating proposals received; and adds a new rule prohibiting deputy directors or equivalent appointed positions from serving on review or selection committees for procurement of professional services. Implements Act 283, SLH 2006, which increased the threshold for small purchases from less than $25,000 to less than $50,000; amended the guidelines for the small purchases process; and established the use of an electronic procurement system. Implements Act 96, SLH 2006, which expanded the duties of the administrator to include the development of specifications to meet the statutory requirements relating to the procurement of environmentally preferable energy products, including the fuel-efficient vehicles and alternative fuels.

The exact change to be made and the reasons for the change. Historical Note. Clarifies that these rules replace rescinded interim rules previously adopted and effective on 7/25/02, 7/03/03, 11/15/03, 1/1/05, 4/18/05, 2/27/06, 10/09/06, and 9/04/07. Section 3-122-1 Definitions. Amends the reference to the definitions, as being in §103D-104, HRS; adds definitions for “award”, “best value” and “contract administrator”; moved “brand name specifications” in alpha order; clarifies “alternative procurement method”, “ contract price”, and “discussions”; deletes definitions for “formal bid or proposal”, “professional services”, “specification for common or general use item”, and “specifications” already provided by law or not necessary; amends definitions for “quotation” and “request for information”. Section 3-122-4 Multiple or alternate offers. Amends language to require the solicitation to specify its treatment of multiple or alternative offers, if allowed. Section 3-122-5 Procuring state produced goods, services, or construction. Repeals section, because of similar language in §3-128-7, HAR. Section 3-122-6 Conditioning offers upon other contracts not acceptable. Amends title from “Conditioning offers upon other awards not acceptable”; amends language to require rejection of an offer that is conditioned on the receipt of a contract, unless permitted in the solicitation. Section 3-122-9 Use of facsimile machines, electronic mail, or electronic procurement systems. Amends title from “Use of facsimiles”; amends reference to appropriate sections of the rules; and expands the language to allow vendors to submit procurement related documents electronically. Section 3-122-9.01 Disclosure of information. Amends title from “Disclosure of names of potential offerors”; amends language to clarify when a purchasing agency may disclose information on a solicitation. Section 3-122-9.02 Request for information. Amends title from “Request for information; formal or informal or both”; deletes the difference between a formal and informal request for information, and instead makes one process to request information. Section 3-122-12 Duties of the administrator. Added a hyphen to “post-consumer”; interim rule effective 10/9/06 amended language to reference the guidelines for purchasing energy-efficient vehicles as established by the department of business, economic development and tourism, pursuant to Act 96/SLH 2006. Section 3-122-13 Development of specifications. Interim rule effective 7/25/02 amended language to allow award based on “best value”; capitalized “State’s”; clarified that small purchase “brand name specifications” or “restrictive specifications” do not require Chief Procurement Officer approval; other changes for housekeeping purposes. Interim rule effective 10/9/06 pursuant to Act 96/SLH 2006, expanded language to include by reference the requirement for the acquisition of energy-efficient vehicles in accordance with the guidelines established by the department of business, economic development and tourism. Subchapter 4, Methods of Source Selection and General Guidance. Changes title from “Methods of source selection”; consolidates general guidance sections from subchapters 5, 6, and 7 into this subchapter. Section 3-122-16 Methods of source selection. Adds reference to new subchapters 4.5, Source Selection for Federal Grants, and 6.5, Multi-step Competitive Sealed Bidding. Section 3-122-16.01 Procurement dollar thresholds. New section incorporates repealed sections 3-122-19 and 3-122-42; removes the dollar threshold and references the dollar threshold of the HRS. Section 3-122-16.02 Preparation time for offer. New section incorporates section 3-122-23 which was amended by 7/3/03 interim rule change, and subsequently repealed; and incorporates deleted language from section 3-122-46. Requires bidder to respond with unpriced technical offer in a multi-step bid within a minimum of fifteen calendar days instead of a minimum of ten calendar days; requires a minimum of fifteen calendar days between the date of the mandatory pre-bid conference and the date set for receipt of bids for construction and design-build projects; and amends language on the public notice date in order to correspond with the changes made in section 3-122-16.03. Section 3-122-16.03 Public notice. New section incorporates sections 3-122-24 and 3-122-64 which were amended by 7/25/02 and 7/3/03 interim rules, and subsequently repealed. Removes requirement to publish the public notice in a newspaper of general circulation; makes publicizing the public notice on a purchasing agency or provider internet site a minimum requirement; clarifies the statewide and countywide requirements for the optional publication of public notice; requires information on pre-bid conferences for construction and design-build projects to be included in the public notice. Subsequent to the adoption of the interim rules, added reference to the new subchapters 4.5 and 6.5 in the section. Interim rule effective 10/9/06 amended subsection (d)(2)(B) to include notification by electronic mail. Section 3-122-16.04 List of potential offerors. New section incorporates repealed section 3-122-25 titled “Bidders lists”. No changes. Section 3-122-16.05 Pre-bid or pre-proposal conference. New section incorporates section 3-122-26 which was amended by 7/3/03 interim rule changes, and subsequently repealed. Allows agencies to hold a pre-bid or pre-proposal conference, but requires such conferences for construction and design-build projects. Requires information of any pre-bid or pre-proposal conference, and any mandatory attendance requirement, to be included in the solicitation or in an addendum if the decision to hold such a conference is made after the solicitation is issued. Requires agencies to furnish a summary of the conference sufficiently before bid opening; and to issue the summary by addendum. Section 3-122-16.06 Amendment and clarification to solicitation. New section incorporates repealed sections 3-122-27 and 3-122-48 to require agencies to issue clarifications by addenda, including 3-122-27(g) allowing clarification to be issued anytime up to the deadline for receipt of offers. Section 3-122-16.07 Pre-opening modification or withdrawal of offer. New section incorporates repealed sections 3-122-28 and 3-122-49. Interim rule effective 10/9/06 amended language to allow offerors to electronically notify the State of bid or proposal modifications and withdrawals to their submittals. Section 3-122-16.08 Late offer, late withdrawal, and late modification. New section incorporated sections 3-122-29, repealed, and 3-122-50, amended by 7/25/02 interim rule and repealed. No substantive changes. Section 3-122-16.09 Cancellation of solicitation and rejection of offer. New section incorporates repealed sections 3-122-32 and 3-122-56, and references the HRS. Subchapter 4.5 Source Selection for Federal Grants. New subchapter; includes sections 3-122-16.30 and 3-122-16.31. Section 3-122-16.30 Purpose. New section on purpose of subchapter 4.5. Section 3-122.16.31 Exception; request for interest. New section to allow use of a “Request for interest” process (described in this section) when time or economic situations preclude the use of other source selection methods in section 3-122-16. Subchapter 5 Competitive Sealed Bidding. Section 3-122-18 Applicability. Repealed, repetitious of section 3-122-17. Section 3-122-19 Dollar thresholds for competitive sealed bids. Repealed and replaced by section 3-122-16.01. Section 3-122-20 Conditions for use. Repealed, repetitious of section 3-122-16. Section 3-122-21 Preparing a competitive sealed bid. Interim rule effective 7/25/02 amended language to reference the HRS in subsection (a)(3)(A); deleted the duplicate provision, subsection (a)(9). Interim rule effective 7/3/03 amended language to require the invitation for bids to include information of any pre-bid conferences. Subsequent to the interim rules, section was amended to delete reference to 103D-328, and instead refer to section 103D-310(c). Subsection (a)(8)(B) was amended to require offers to include information on any joint contractor or subcontractor; references the HRS; and other non-substantive changes. Interim rule effective 10/9/06 amended subsections (a)(1)(B) and (a)(5) to include language for bid submittals submitted through an electronic procurement system. Section 3-122-22 Multi-step sealed bidding. To be repealed and replaced by subchapter 6.5. Section 3-122-23 Bidding time. To be repealed and replaced by section 3-122-16.02. Section 3-122-24 Public notice. Repealed and replaced by section 3-122-16.03. Section 3-122-25 Bidders lists. To be repealed and replaced by section 3-122-16.04. Section 3-122-26 Pre-bid conferences. To be repealed and replaced by section 3-122-16.05. Section 3-122-27 Amendments and clarifications to invitations for bids. To be repealed and replaced by section 3-122-16.06. Section 3-122-28 Pre-opening modification or withdrawal of bids. To be repealed and replaced by section 3-122-16.07. Section 3-122-29 Late bids, late withdrawals, and late modifications. To be repealed and replaced by section 3-122-16.08. Section 3-122-30 Receipt, opening, and recording of bids. Deletes language referencing multi-step bidding which is now included in new subchapter 6.5; and makes housekeeping changes. Section 3-122-31 Mistakes in bids. Interim rule effective 7/25/02 clarified “other material indicating the bidder’s intent to be bound” by specifying “bid security” and other material “with an original signature”; made a non-substantive change. Subsequent to the interim rule, section was amended to allow procurement officer to correct or waive the mistake without the concurrence of the chief procurement officer or head of the purchasing agency; made other non-substantive changes. Section 3-122-32 Cancellation of solicitations and rejection of bids. To be repealed and replaced by section 3-122-16.09. Section 3-122-33 Bid evaluation and award. Interim rule effective 7/25/02 removed language in subsection (h) repetitive of §103D-302, HRS and amended subsection (h) to allow sole responsive, responsible bids to be negotiated under §103D-302(h), HRS, when the sole bid exceeds available funds, and deleted subsections (d) and (f) that provide no real substance to the section. Subsequent to the interim rule, language was amended to require the posting of award and clarify that award shall be in writing. Section 3-122-35 Waiver to competitive sealed bidding process. Interim rule effective 7/25/02 allowed discussions with single bidder when funds are exceeded; made other housekeeping changes. Section 3-122-42 Dollar thresholds for competitive sealed proposals. To be repealed and replaced by section 3-122-16.01. Section 3-122-43 When competitive sealed bidding is not practicable or advantageous. Amends language for housekeeping purposes. Section 3-122-45 Determinations. Interim rules effective 7/25/02 amended the section to require the procurement policy board to issue the list of board-approved procurements by directive; made other housekeeping changes. Section 3-122-45.01 Evaluation committee. New section incorporates section 3-122-52(a). Interim rule effective 7/25/02 amended the section to define committee members; allow private consultants to serve on the committee; and require private consultants on the committee to sign an affidavit, the contract administrator to serve on the committee, the contract administrator or a designee to serve as chairperson, and the procurement officer or designee to serve as advisor. Section 3-122-46 Preparing a request for proposals. Interim rule effective 7/25/02 amended the section to include “best value factors” as an evaluation factor; and made housekeeping changes. Interim rule effective 7/3/03 amended section to require a minimum number of days between the pre-proposal conference date and the due date for proposals for construction and design-build projects. Subsequent to the interim rules, the following provisions were deleted: preparation time, included in section 3-122-16.02; public notice, included in section 3-122-16.03; pre-proposal conferences, included in section 3-122-16.05; and evaluation of proposals, included in section 3-122-45.01; and clarification was made that discussions may be conducted with “priority-listed offerors.” Section 3-122-48 Amendments to request for proposals. To be repealed and replaced by section 3-122-16.06. Section 3-122-49 Modification or withdrawal of proposals. To be repealed and replaced by section 3-122-16.07. Section 3-122-50 Late proposals, late withdrawals, and late modifications. To be repealed and replaced by section 3-122-16.08. Section 3-122-51 Receipt and registration of proposals. Interim rules effective 7/25/02 clarified that proposals and modifications are to be opened in the presence of two or more state officials and not necessarily procurement officials; and allowed agency to show the proposals to its private consultant if the consultant is either an evaluation committee member or has legitimate interest in the proposals. Section 3-122-52 Evaluation of proposals. Interim rules effective 7/25/02 amended subsection (a) to clarify who may be appointed to the evaluation committee, and to designate the role of the contract administrator and the procurement officer on the committee. Interim rule effective 11/15/03 deleted subsection (a) on evaluation committee and incorporated it in new section 3-122-45.01; and made a substantive change to subsection (b) to require a numerical rating system in which points are applied to each evaluation factor with written determination made part of the contract file for public inspection. Section 3-122-53 Discussions with offerors. Interim rules effective 7/25/02 deleted the term “responsive\u201D since it is not in §103D-303, HRS; replaced \u201Dmost advantageous\u201D with “best value” for clarity; and other non-substantive changes. Section 3-122-54 Best and final offers. Clarifies that any changes to the State’s requirements prior to the receipt of best and final offers shall be issued by addendum to only priority-listed offerors. Section 3-122-55 Mistakes in proposals. To be repealed, as the competitive sealed proposals process is conducive to handling mistakes. Section 3-122-56 Cancellation of solicitations and rejection of proposals. To be repealed and replaced by section 3-122-16.09. Section 3-122-57 Award of contract. Interim rule effective 7/25/02 deleted the word \u201Dresponsive\u201D since it is not in the HRS; required award of contract be made in a timely manner and by best value; amended subsection (b) to reference the HRS and the applicable HAR; and made other non-substantive changes. Interim rule effective 11/15/03 required the posting of award; and made a non-substantive change. Section 3-122-58 Public inspection. Interim rule effective 7/25/02 required the contract file to be made public upon award of the contract, instead of giving the agency the option of disclosing the information upon award or upon execution of the contract. Other changes clarified references to rules. Section 3-122-59 Waiver to competitive sealed proposal process. Interim rule effective 7/25/02 deleted the word \u201Dresponsive\u201D since it is not in the HRS. Section 3-122-60 Debriefing. Interim rule effective 7/3/03 created new section requiring debriefing upon request by non-selected offerors. Interim rule effective 11/15/03 allowed the procurement officer or designee to hold the debriefing and to determine whether to conduct individual or combined debriefings. Subchapter 6.5 Multi-step competitive sealed bidding. New subchapter for two-phase competitive sealed bidding process that was originally in subchapter 5 and later deleted, and combines the competitive sealed proposals process from subchapter 6 with the competitive sealed bidding process for use when low bid is desired but definitive specifications cannot be developed. Section 3-122-61.05 Purpose. New section on purpose for subchapter 6.5. Section 3-122-61.06 Preparing a multi-step invitation for bids. New section on unique requirements for the two-phase invitation for bids process. Section 3-122-61.07 Phase one. New section on requirements for phase one of the two-phase process. Section 3-122-61.08 Phase two. New section on requirements for phase two of the two-phase process. Subchapter 7 Procurement of Professional Services. Section 3-122-63 General provisions. Interim rule effective 7/25/02 changed title from “Procurement of professional services”; deleted sections already elsewhere in the law and reference to the cost or pricing data requirement not required by HRS; clarified the dollar value of amendments requiring the prior approval of the head of purchasing agency; and identified specific information as public information upon award of the contract. Interim rule effective 7/3/03 comported the section with HRS 103D-304. Section 3-122-64 Public notice for professional services. Interim rule effective 7/25/02 changed title from “Annual public notice for professional services.” Section was repealed, and included in section 3-122-16.03. Section 3-122-65 Procedures for procurement of professional services. Interim rule effective 7/25/02 repealed the section since it is in the HRS. Section 3-122-66 Waiver to requirement for procurement of professional services. Interim rule effective 7/25/02 amended subsections (a) and (b) to reference the HRS; and made other non-substantive changes. Section 3-122-67 Small purchases of professional services. Interim rule effective 7/25/02 amended the section to reference the HRS. Interim rule effective 7/3/03 excluded the small purchase of design professional services furnished by licensees under chapter 464, HRS. Section 3-122-68 Record of procurement actions. Interim rule effective 7/25/02 repealed the section as Act 43, SLH 2001, section 1 repealed the section’s basis, §103D-321, HRS. Section 3-122-69 Review and selection committees. Interim rule effective 7/3/03 created this new section identifying the requirements persons serving on the committees who are not employees of the purchasing agency. The interim rule was amended to prohibit deputy directors, or their equivalent appointed positions, to serve on review or selection committees. Section 3-122-70 Debriefing. Interim rule effective 7/3/03 created this new section requiring debriefing upon the request of non-selected providers of professional services. Interim rule effective 11/15/03 allowed the procurement officer or designee to hold the debriefing and to determine whether to conduct individual or combined debriefings. The interim rule also corrects a reference to the HRS. Subchapter 8, Small Purchases. Section 3-122-74 General provisions. Interim rule effective 7/25/02 changed the title from “Conditions for use”; amended subsection (a) to reference the HRS; and made other non-substantive changes. Interim rule effective 7/3/03 clarified that small purchases for design professional services to be provided by licensees under chapter 464, HRS, shall be procured pursuant to 103D-304, HRS. Section 3-122-75 Goods, services, and construction. Interim rule effective 7/25/02 amended reference to the HRS; allowed awards to be based on best value; and required the procurement policy board to establish procedures by directive. Interim rule effective 7/3/03 changed the title from “Goods and services”; allowed the award of small purchases of construction to be based on best value instead of low price. Interim rule effective 10/9/06 was made pursuant to Act 283/SLH 2006 and increased the small purchase dollar level to less than $50,000; amended small purchase procedures by designated dollar levels. Section 3-122-76 Construction. Interim rule effective 7/3/03 repealed section; and amended section 3-122-75 to address construction awards. Section 3-122-77 Procurement file and disclosure of information. Interim rule effective 7/25/02 deleted the details on when and what to include in the procurement file, and title changed from “Procurement file”. Interim rule effective 10/9/06 clarified when quotations from vendors shall be made available for public information. Section 3-122-78 Electronic procurement Interim rule effective 10/9/06 created this new section; required the use of an electronic procurement system for small purchases of $25,000 to less than $50,000 as of 7/1/07; and allowed the chief procurement officer further flexibility to determine the use of an electronic procurement system for small purchases under $25,000. Subchapter 9, Sole Source Procurement. Section 3-122-81 General provisions. Interim rule effective 7/25/02 changed title from “Conditions for use”; referenced the HRS; deleted rules repetitive of the HRS; and made other non-substantive changes. Section 3-122-82 Sole source approvals and amendments. Interim rule effective 7/25/02 incorporated repealed section 3-122-83; and changed title from “Requesting sole source approval”. Section 3-122-83 Amendments to sole source contracts. Interim rule effective 7/25/02 repealed section, and incorporated it in section 3-122-82. Section 3-122-84 Record of procurement actions. Interim rule effective 7/25/02 repealed the section because Act 43, SLH 2001, section 1 repealed the section’s basis, §103D-321, HRS. Subchapter 10, Emergency Procurement. Section 3-122-88 General provisions. Interim rule effective 7/25/02 changed the title from \u201DApplication”; referenced the HRS; and clarified when emergency procurement may be used. Section 3-122-89 Definition. Interim rule effective 7/25/02 repealed the section as the definition is in the HRS. Section 3-122-90 Procedures. Deletes cost or pricing requirement since it is not required by statute. Section 3-122-91 Record of procurement actions. Interim rule effective 7/25/02 repealed the section because Act 43, SLH, section 1 repealed this section’s basis, §103D-321, HRS. Subchapter 11, Cancellation of Solicitations and Rejection of Offers. Section 3-122-95 Cancellation of solicitations and rejection of offers. Interim rule effective 7/25/02 referenced the HRS. Section 3-122-96 Cancellation of solicitation. Interim rule effective 7/25/02 allowed a designee of the chief procurement officer to determine whether cancellation is in the public interest; and made other changes for housekeeping purpose. Section 3-122-97 Rejection of offer. Interim rule effective 7/25/02 amended this section for clarity and housekeeping purposes. Subsequent to interim rule, the title was changed from \u201DRejection of bids and proposals\u201D. Subchapter 12, Contract Not Binding Unless Funds Available. Section 3-122-102 Contract not binding unless funds available. Interim rule effective 7/25/02 deleted language repetitive of 103D-309, HRS; exempted lease contracts made pursuant to 3-122-147 and installment purchase payment contracts from the certification requirement but required the certification of funds for the initial fiscal period and allowed the succeeding fiscal periods of the contract to be subject to the availability of funds. Section 3-122-103 Contracts involving federal funds. Interim rule effective 7/25/02 repealed the section due to duplication of the HRS. Subchapter 13, Responsibility of Bidders and Offerors. Section 3-122-108 Qualification of offeror or prospective offeror. Interim rule effective 7/25/02 amended the title from “Qualification of bidders and offerors”; deleted the provision on the notice of intent to submit an offer because it is incorporated in the new section 3-122-111; referenced the HRS; and details the determination of nonresponsibility. Section 3-122-109 Questionnaire. Interim rule effective 7/25/02 amended this section to correct format. Section 3-122-110 Determination of nonresponsibility. Interim rule effective 7/25/02 repealed this section because it is included in §3-122-108. Section 3-122-111 Notice of intent to offer. Interim rule effective 7/25/02 created this new section to detail the notice of intent to submit an offer; and made the notice optional. Interim rule effective 10/9/06 allowed the electronic submittal of the notice of intent. Section 3-122-112 Responsibility of offeror. Interim rule effective 7/3/03 created this new section to implement SLH 2003, Act 52, section 6. Subsequent to the interim rule, the title was changed from “Compliance with all laws governing entities doing business in the State”; and the following were added: the requirement for certificates to be provided as proof of compliance; optional requirements for small purchases; requirements for final payment of a contract; and other changes for housekeeping purposes. Subchapter 14, Prequalification of Suppliers. Section 3-122-117 Prequalification of suppliers. To be repealed as it is not appropriate for the subchapter. Subchapter 15, Cost or Pricing Data. Section 3-122-121 Scope and application. Interim rule effective 7/25/02 amended the section for clarification and housekeeping purposes. Section 3-122-123 Requirement for cost or pricing data. Interim rule effective 7/25/02 amended this section for clarification and housekeeping purposes. Subsequent to the interim rule, this section was amended to allow the requirement for cost or pricing data or both for professional services pursuant to subchapter 7, to be at the option of the procurement officer. Section 3-122-124 Exceptions to the requirement for cost or pricing data. Interim rule effective 7/25/02 amended section for clarification and housekeeping purposes. Subsection 16, Types of Contracts. Section 3-122-136 Fixed-priced contract. Changes title from \u201DThe fixed-priced contract.\u201D Section 3-122-137 Cost-reimbursement contract. Changes title from \u201DThe cost-reimbursement contract.” Section 3-122-138 Cost-incentive contract. Changes title from \u201DThe cost- incentive contract.” Section 3-122-141 Labor hour contract. Corrects reference from ‘subsection’ to ‘section’. Section 3-122-145 Multiple award contract. Interim rule effective 7/25/02 allowed the CPO to determine whether the use of a multiple award contract is voluntary or mandatory and to require the solicitation to state the decision, and made other changes for clarification. Section 3-122-147 Lease contract. Interim rule effective 7/25/02 clarified when the competitive sealed bidding or proposal process is applicable; required certification of funds for lease contracts pursuant to section 3-122-102; and made other changes for housekeeping purposes. Section 3-122-148 Installment purchase payment contract. Interim rule effective 7/25/02 required certification of funds pursuant to section 3-122-102. Section 3-122-149 Multi-term contract. Interim rule effective 7/25/02 deleted provisions repetitive of the HRS; deleted unnecessary language and made clarifications. Subchapter 17, Approval of Accounting System. Section 3-122-155 Approval of accounting system. Interim rule effective 7/25/02 repealed the section due to duplication of the HRS. Subchapter 20, Finality of Determinations. Section 3-122-186 Finality of determinations. Interim rule effective 7/25/02 repealed this section due to duplication of the HRS. Subchapter 22, Retention of Procurement Records. Section 3-122-201 Retention of procurement records. Interim rule effective 7/25/02 amended to reflect that records retention guidelines and schedules are as approved by the applicable governmental body. Subchapter 23, Record of Procurement Actions. Section 3-122-211 Record of procurement actions. Interim rule effective 7/25/02 repealed the section because Act 43, SLH 2001, section 1 repealed this section’s basis, §103D-321, HRS. Subchapter 24, Bid Security, Contract Performance, and Payment Bonds. Section 3-122-222 Acceptable bid security, contract performance and payment bonds. Amended to correct the statutory references and delete “security or bond” for clarification. Section 3-122-223 Bid security. Interim rule effective 7/25/02 deleted the dollar threshold and referenced the HRS; deleted the requirement to obtain approval to require bid security for construction contracts under the small purchase limit. Section 3-122-224 Contract performance and payment bonds. Interim rule effective 7/25/02 deleted the dollar threshold and referenced the HRS; deleted the requirement to obtain approval to require performance and payment bonds for construction contracts under the small purchase limit; and clarified subsection (c). Section 3-122-225 Reduction of contract performance and payment bond amounts. Interim rule effective 7/25/02 incorporated repealed section 3-122-226, and made clarifications. Section 3-122-226 Reduction of contract performance and payment bond amounts during performance. Interim rule effective 7/25/02 repealed section; and consolidated it into section 3-122-225. Section 3-122-227 Payment claims against the bond. Corrects HRS reference.

Copies of the proposed rules are available to any interested person at the State Procurement Office, 1151 Punchbowl Street, Room 416, Honolulu, Hawaii 96813; or may be viewed at the State Procurement Office\u2019s website at http://www.spo.hawaii.gov/, click on “Statutes and Rules”.

One copy of the proposed rule amendments will be mailed to any interested person requesting a copy. For additional copies, a fee of ten cents per page plus postage, will be charged. The request may be made in writing to the Administrator, State Procurement Office, 1151 Punchbowl Street, Room 230-A, Honolulu, Hawaii 96813; by mail to P.O. Box 119, Honolulu, Hawaii 96810-0119; by facsimile to (808) 587-4703; or email to state.procurement.office@hawaii.gov .

All interested persons shall be afforded an opportunity to submit data, views, or arguments, at the time of the hearing; however, all comments must be submitted in writing by the date indicated below. All persons wishing to submit written statements must submit three (3) copies of the written statements to the Administrator, State Procurement Office, 1151 Punchbowl Street, Room 230-A, Honolulu, Hawaii 96813; by mail to P.O. Box 119, Honolulu, Hawaii 96810-0119; by facsimile to (808) 587-4703 by January 30, 2008; or email to state.procurement.office@hawaii.gov .

The hearing locations are wheelchair accessible. If special needs are required (i.e. sign language), please call Clarence Fukumoto at (808) 587-4707 by 4:30 P.M. by January 30, 2008.

AARON S. FUJIOKA
ADMINISTRATOR
(SB03513663 1/5/08) STATE PROCUREMENT OFFICE