CONSTRUCTION PROCUREMENT REQUIREMENTS

O C T O B E R 1 2 , 2 0 1 7

HRS 103D-203CHIEF PROCUREMENT

OFFICERS

This section of the procurement code designates chief procurement officers for State entities and counties. The state entities that have their own chief procurement officers are: 1) Judiciary2) Senate3) House of Representatives4) Office of Hawaiian Affairs5) University of Hawaii6) Department of Education7) Hawaii Health Systems Corporation

The administrator of the State Procurement Office (SPO) is the chief procurement officer for all remaining departments of the executive branch of the State.

HRS 103D-205AUTHORITY AND DUTIES OF THE CHIEF PROCUREMENT OFFICERS

For their respective jurisdictions, each chief procurement officer shall serve as the central procurement officer for their jurisdictions which includes, but is not limited to, the procurement and supervision of the procurement of all goods, services and construction.

ACT 87, SLH 2013(HB114 HD3 SD2 CD1)

During the 2013 Legislative session, a bill relating to University construction was introduced and passed and subsequently became Act 87, Session Laws of Hawaii (SLH) 2013.

ACT 87, SLH 2013

Amended HRS 103D-203 and provided that the chief procurement officer for the University is the President provided that the Administrator of the State Procurement Office (SPO) shall serve as the Chief Procurement Officer of the University (in place of the UH President) for construction and construction-related professional services furnished by licensees under chapter 464 (professional engineers, architects, surveyors and landscape architects).

ACT 87, SLH 2013

Pursuant to Act 87, the Administrator of the SPO issued:

1) Procurement Delegation Memorandum No. 2013-01 delegating procurement authority back to the UH President, with limitations, for construction and HRS 464 professional services (architects, engineers, etc.), but SPO has retained approval authority for Requests for Sole Source and Emergency Procurements for construction.

ACT 87, SLH 2013

2) In addition, UH and SPO entered into a Memorandum of Agreement (MOA) which set forth further requirements on UH when procuring construction and construction design-related professional services.

REVISIONS TO UH ADMINISTRATIVE PROCEDURES

FOR PROCUREMENT

To implement the new requirements imposed by the memoranda with respect to construction, a new section was created within the University’s Administrative Procurement Procedures (A8.200 – A8.295) addressing exclusively the procurement of professional services for licensees under HRS Chapter 464 (e.g. architects, engineers, etc.) and the procurement of construction services.

This section is Administrative Procedure 8.281 Construction and Professional Services in Support of Construction.

METHODS OF SOURCE SELECTION FOR CONSTRUCTION

1. Competitive Sealed Bidding

2. Competitive Sealed Proposals

3. Professional Services

4. Small Purchases

Procurement Authority for these methods of source selection for construction were delegated back to UH.

METHODS OF SOURCE SELECTION FOR CONSTRUCTION

5. Sole Source

6. Emergency Procurements

These methods of source selection were not delegated back to UH and SPO approval is required for all sole source and emergency procurements for construction.

SOLE SOURCECONSTRUCTION

Requesting Sole Source Approval

When requesting a sole source purchase in any dollar amount, the requisitioner must complete and submit the Notice & Request For Sole Source, Form SPO-001.

EMERGENCY PROCUREMENTCONSTRUCTION

Requesting Emergency Approval

Emergency expenditures regardless of dollar amount shall be submitted to the SPO for review and approval.

Form SPO-002, Emergency Procurement shall be used for this purpose.

Fiscal administrators are authorized to approve all emergency expenditures which must be made after normal working hours.For such purchases, Form SPO-002 should be completed and provided to the SPO as soon thereafter as reasonably possible.

METHODS OF SOURCE SELECTION FOR CONSTRUCTION

Exempt Procurements for Construction

Exempt procurements are not allowed for any construction services. Therefore, you may not use any of the exemptions listed in AP 8.220 or request an Exemption from Chapter 103D, HRS for construction services.

ADDITIONAL REQUIREMENTS FOR CONSTRUCTION PROCUREMENTS

1) Delegation of Procurement Authority

Procurement authority may be further delegated by the President to personnal, as designated procurement officers or authorized to conduct and participate in construction procurement activities.

Procurement activities includes small purchases, developing/drafting a solicitation, reviewing, approving, conducting, managing, and administering the procurement/contract.

UH Personnel that has not been provided this delegation of procurement authority may not conduct or participate in construction procurements/contracts.

ADDITIONAL REQUIREMENTS FOR CONSTRUCTION PROCUREMENTS

2) Education and Training

All procurement officers and personnel with written delegated procurement authority to conduct and or participate in the procurement process for construction are required to attend applicable SPO training workshops.

Training requirements as well as on-demand training can be found at:

http://spo.hawaii.gov/for-state-county-personnel/training/

SPO TRAINING WEBSITE

PROCUREMENT TRAINING REQUIREMENTS

ON DEMAND TRAINING

ADDITIONAL REQUIREMENTS FOR CONSTRUCTION PROCUREMENTS

3) Posting of Awards

Construction awards of $2,500 and greater shall be reported on the SPO Awards Reporting System.

For Small Purchase Procurements, Fiscal administrators are required to complete OPRPM Form 155 (Attachment 281.5) and submit to OPRPM within TWO (2) days of issuing a purchase order within their delegated purchasing authority over $2,500.

WHAT IS CONSTRUCTION?

“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.

CHAPTER 104, HRSWAGES AND HOURS OF

EMPLOYEES ON PUBLIC WORKS

Section 104-2, HRS: Applicability; wages, hours, and other requirements provides in pertinent part as follows:

This chapter shall apply to every contract in excess of $2,000 for construction of a public work project to which a governmental contracting agency is a party.

"Contract" includes but is not limited to any agreement, purchase order, or voucher in excess of $2,000 for construction of a public work project.

CHAPTER 444, HRSCONTRACTORS

Section 444-9, HRS, Licenses required provides:

No person within the purview of this chapter shall act, or assume to act, or advertise, as general engineering contractor, general building contractor, or specialty contractor without a license previously obtained under and in compliance with this chapter and the rules and regulations of the contractors license board.

If a specialty contractor’s license is required for your project, then it is considered construction.

HAWAII ADMINISTRATIVE RULES, TITLE 16, CHAPTER 77

CONTRACTORS

This section of the Hawaii Administrative Rules provides guidance on the specific types of licenses required for construction projects.

http://cca.hawaii.gov/hawaii-administrative-rules/

Click on “HAR Chapter 77 – Contractors”

QUESTIONS?