(a) This chapter shall apply to all procurement contracts made by governmental bodies whether the consideration for the contract is cash, revenues, realizations, receipts, or earnings, any of which the State receives or is owed; in-kind benefits; or forbearance; provided that nothing in this chapter or rules adopted hereunder shall prevent any governmental body from complying with the terms and conditions of any other grant, gift, bequest, or cooperative agreement.
Terms Used In Hawaii Revised Statutes 103D-102
Bequest: Property gifted by will.
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.
Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
Entitlement: A Federal program or provision of law that requires payments to any person or unit of government that meets the eligibility criteria established by law. Entitlements constitute a binding obligation on the part of the Federal Government, and eligible recipients have legal recourse if the obligation is not fulfilled. Social Security and veterans' compensation and pensions are examples of entitlement programs.
Forbearance: A means of handling a delinquent loan. A
Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
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
Governmental body: means any department, commission, council, board, bureau, authority, committee, institution, legislative body, agency, government corporation, or other establishment or office of the executive, legislative, or judicial branch of the State, including the office of Hawaiian affairs, and the several counties of the State. See Hawaii Revised Statutes 103D-104
Grant: means the furnishing of assistance, whether financial or otherwise, to any person to support a program authorized by law. See Hawaii Revised Statutes 103D-104
Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
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
Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
Trustee: A person or institution holding and administering property in trust.
(b) Notwithstanding subsection (a), this chapter shall not apply to contracts by governmental bodies:
(1) Solicited or entered into before July 1, 1994, unless the parties agree to its application to a contract solicited or entered into prior to July 1, 1994;(2) To disburse funds, irrespective of their source:
(A) For grants as defined in § 42F-101, made by the State in accordance with standards provided by law as required by article VII, section 4, of the state constitution; or by the counties pursuant to their respective charters or ordinances;(B) To make payments to or on behalf of public officers and employees for salaries, fringe benefits, professional fees, or reimbursements;(C) To satisfy obligations that the State is required to pay by law, including paying fees, permanent settlements, subsidies, or other claims, making refunds, and returning funds held by the State as trustee, custodian, or bailee;(D) For entitlement programs, including public assistance, unemployment, and workers’ compensation programs, established by state or federal law;(E) For dues and fees of organizations of which the State or its officers and employees are members, including the National Association of Governors, the National Association of State and County Governments, and the Multi-State Tax Commission;(F) For deposit, investment, or safekeeping, including expenses related to their deposit, investment, or safekeeping;(G) To governmental bodies of the State;(H) As loans, under loan programs administered by a governmental body; and(I) For contracts awarded in accordance with chapter 103F;(3) To procure goods, services, or construction from a governmental body other than the University of Hawaii bookstores, from the federal government, or from another state or its political subdivision;(4) To procure the following goods or services which are available from multiple sources but for which procurement by competitive means is either not practicable or not advantageous to the State:
(A)Services of expert witnesses for potential and actual litigation of legal matters involving the State, its agencies, and its officers and employees, including administrative quasi-judicial proceedings;(B) Works of art for museum or public display;(C) Research and reference materials including books, maps, periodicals, and pamphlets, which are published in print, video, audio, magnetic, or electronic form;(D) Meats and foodstuffs for the Kalaupapa settlement;(E) Opponents for athletic contests;(F) Utility services whose rates or prices are fixed by regulatory processes or agencies;(G) Performances, including entertainment, speeches, and cultural and artistic presentations;(H)Goods and services for commercial resale by the State;(I) Services of printers, rating agencies, support facilities, fiscal and paying agents, and registrars for the issuance and sale of the State’s or counties’ bonds;(J) Services of attorneys employed or retained to advise, represent, or provide any other legal service to the State or any of its agencies, on matters arising under laws of another state or foreign country, or in an action brought in another state, federal, or foreign jurisdiction, when substantially all legal services are expected to be performed outside this State;(K) Financing agreements under chapter 37D; and(L) Any other goods or services which the policy board determines by rules or the chief procurement officer determines in writing is available from multiple sources but for which procurement by competitive means is either not practicable or not advantageous to the State; and(5) Which are specific procurements expressly exempt from any or all of the requirements of this chapter by:
(A) References in state or federal law to provisions of this chapter or a section of this chapter, or references to a particular requirement of this chapter; and(B) Trade agreements, including the Uruguay Round General Agreement on Tariffs and Trade (GATT) which require certain non-construction and non-software development procurements by the comptroller to be conducted in accordance with its terms.(c) Notwithstanding subsection (a), this chapter shall not apply to contracts made by:
(1) Any regional system board of the Hawaii health systems corporation; or(2) The Kaho’olawe island reserve commission, except as provided by section 6K-4.5.(d) Governmental bodies making procurements which are exempt from this chapter are nevertheless encouraged to adopt and use provisions of this chapter and its implementing rules as appropriate; provided that the use of one or more provisions shall not constitute a waiver of the exemption conferred and subject the procurement or the governmental body to any other provision of this chapter.
