Hawaii Administrative Rules › Title 3 - DEPARTMENT OF ACCOUNTING AND GENERAL SERVICES › State Procurement Office › Hawaii Public Procurement Code › Chapter 124 - PREFERENCES › Subchapter 9 - SMALL BUSINESS PREFERENCE RULES (INTERIM) › Section 3-124-73.1 - Implementation of Small Business Preference by Heads of Purchasing Agencies

Current through June, 2024
(a) Heads of purchasing agencies shall
					 implement the Hawaii Small Business Preference by doing the following:
(1) Step #1 - Identification of Relevant Size
					 Standard. Heads of purchasing agencies shall require that each procurement
					 proposed to meet an agency need include in the proposal documents the
					 identification of the applicable small business size standard set by the policy
					 board for the type of work to be solicited.
(2) Step #2 - Identification of Individual
					 Procurements for small business Set-Aside. Heads of purchasing agencies shall
					 review each proposed procurement and determine whether the procurement is
					 suitable for performance by businesses meeting the applicable small business
					 size standard. Factors to be considered in making the determination include
					 anticipated manpower requirements, bonding capacity, contractor financing
					 needs, and any other work and responsibility factors relevant to the individual
					 procurement.
(i) Procurements identified by
					 the policy board for small business utilization. Pursuant to HAR §
					 3-124-71, the Small Business Utilization Council recommends to the policy board
					 for its approval the identification of targeted areas of emerging industries,
					 geographic areas within the state, and under-utilized workforce resources where
					 government purchases from small businesses would promote the purposes of HRS
					 §
													103D-906.
					 If the proposed procurement falls within an industry or other targeted area
					 approved by the policy board for small business utilization and the work is
					 susceptible of performance by a small business, the head of purchasing agency
					 shall set the procurement aside for competition limited to small
					 businesses.
(ii) If the proposed
					 procurement does not fall within an area targeted for small business
					 utilization by the policy board but is susceptible of performance by a small
					 business, the head of the purchasing agency may set the procurement aside for
					 competition limited to small businesses. In exercising discretion to set aside
					 procurements not identified for small business utilization by the policy board,
					 the head of the purchasing agency shall consider whether the set aside of the
					 procurement will further the achievement of any small business utilization
					 goals and whether set aside will promote the development of future competition
					 for work of the nature required by the proposed procurement.
(3) Step #3 - Insertion of small
					 business set-aside solicitation provisions.
(a) For those procurements the head of
					 purchasing agency sets aside for small business utilization, the head of
					 contracting agency-shall direct insertion into the solicitation of the
					 provisions provided at HAR §§ 3-124-74(a) (1) , (2), (3) and
					 (7).
(b) For those procurements the
					 head of purchasing agency sets aside for very small businesses under such
					 criteria as the policy board may establish, the head of the purchasing agency
					 shall direct insertion into the solicitation of the provisions provided at HAR
					 §§ 3-124-74(a)(4)and (7).
(4) Step #4 - Identification of individual
					 procurements for full and open competition. If the head of the purchasing
					 agency determines the procurement is not susceptible of performance by a small
					 business, the head of the purchasing agency shall require that the successful
					 competitor for the procurement develop and implement a small business
					 utilization plan as a part of the competitive process. To impose this
					 requirement, the head of purchasing agency shall direct the insertion into the
					 solicitation of the provision at HAR § 3-124-74(a)(5). The Head of the
					 purchasing agency shall also direct the insertion of either the small business
					 subcontracting incentive clause or the liquidated damages clause at HAR
					 §§ 3-124-74(a)(6). The determination of which of these alternate
					 clauses is to be inserted into the solicitation shall be as directed by the
					 chief procurement officer or designee.
(5) Step #5 - Competition of All
					 Procurements. The Hawaii small business preference procedures operate solely to
					 identify the appropriate class of competitors for agency procurements. The
					 small business preference procedures do not release the agency from its
					 obligation to use competitive source selection requirements. Accordingly, heads
					 of purchasing agencies shall direct and require that all procurements set aside
					 for small business be processed in compliance with applicable source selection
					 procedures.