(a) A procurement officer shall purchase goods, services, and construction from responsible sources at fair and reasonable prices. A procurement officer shall make a written determination whether a price is fair and reasonable for each contracting action, including change orders and contract modifications that adjust prices. In establishing whether a price is fair and reasonable, the procurement officer shall obtain:
Terms Used In Hawaii Revised Statutes 103D-312
Change order: means a written order signed by the procurement officer, directing the contractor to make changes which the changes clause of the contract authorizes the procurement officer to order without the consent of the contractor. See Hawaii Revised Statutes 103D-104
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. See Hawaii Revised Statutes 103D-104
Contract: means all types of agreements, regardless of what they may be called, for the procurement or disposal of goods or services, or for construction. See Hawaii Revised Statutes 103D-104
Contract: A legal written agreement that becomes binding when signed.
Contract modification: means any written alteration in specifications, delivery point, rate of delivery, period of performance, price, quantity, or other provisions of any contract accomplished by mutual action of the parties to the contract. See Hawaii Revised Statutes 103D-104
Goods: means all property, including but not limited to equipment, equipment leases, materials, supplies, printing, insurance, and processes, including computer systems and software, excluding land or a permanent interest in land, leases of real property, and office rentals. See Hawaii Revised Statutes 103D-104
Procurement: means buying, purchasing, renting, leasing, or otherwise acquiring any good, service, or construction. See Hawaii Revised Statutes 103D-104
Procurement officer: means any person authorized to enter into and administer contracts and make written determinations with respect thereto. See Hawaii Revised Statutes 103D-104
Services: means the furnishing of labor, time, or effort by a contractor, not involving the delivery of a specific end product other than reports which are merely incidental to the required performance. See Hawaii Revised Statutes 103D-104
(1) Certified cost or pricing data for every contract to which subsection (c) applies; and(2) Other data as necessary to perform a cost or price analysis of the data and determine a fair and reasonable price, regardless of whether subsection (c) applies to the contract.(b) The policy board may adopt rules, pursuant to chapter 91, to establish an order of preference in the type of data required under subsection (a) (2).(c) A contractor, except as provided in subsection (e), shall submit cost or pricing data and shall certify that, to the best of the contractor’s knowledge and belief, the cost or pricing data submitted is accurate, complete, and current as of a mutually determined specified date before the date of:
(1) The pricing of any contract awarded by competitive sealed proposals or pursuant to the sole source procurement authority, where the total contract amount is expected to exceed an amount established by rules adopted by the policy board; or(2) The pricing of any change order or contract modification that is expected to exceed an amount established by rules adopted by the policy board. The requirement of this paragraph shall apply regardless of whether the original contract award did not require certified cost and pricing data.(d) Any contract, change order, or contract modification under which a certificate is required shall contain a provision that the price to the State, including profit or fee, shall be adjusted to exclude any significant sums by which the State finds that the price was increased because the contractor furnished cost or pricing data that was inaccurate, incomplete, or not current as of the date agreed upon between the parties.(e) The requirements of this section, except for the requirements of [subsection] (c) (2), shall not apply to original contract awards:
(1) Where the original contract price is based on adequate price competition;(2) Where the original contract price is based on established catalog prices or market prices;(3) Where the original contract prices are set by law or rule; or(4) Where it is determined in writing in accordance with rules adopted by the policy board that the requirements of this section may be waived, and the reasons for the waiver are stated in writing; provided that the requirements for price and costing data required under subsection (a) (2) shall not be waived without the approval of the chief procurement officer; provided further that the chief procurement officer shall not delegate this authority.
