News & Events

SPO Congratulates Erwin Wright of Kauai County on Nomination for Procurement Professional Excellence Award

SPO Administrator Sarah Allen congratulated Erwin Wright, the Specifications and Procurement Specialist VI for the Division Purchasing, on being nominated for the 2016 Procurement Professional Excellence Award.  Erwin has committed 20 years of his professional life to the Division of Purchasing, and has a total of 31 years of service to the County of Kauai.   He has brought the best of procurement and technology to help move the Division of Purchasing achieve a higher degree of effectiveness and efficiency. Erwin has also presented himself as a man of great vision and perspective with regard to understanding the critical importance of moving toward the various technological enhancements and resources that are available in the 21sty century.

Erwin was nominated by Ernie Barreira, Assistant Chief Procurement Officer/Budget Chief of the Division of Purchasing for the County of Kauai. The certificate presentation took place at the Kauai County’s Mo’ikeha Building. Pictured from left to right: Sarah Allen, Raina Bautista, Jason Coloma Erwin Wright, Ernie Barreira, Carrie Moses, and Kristi Mahi.  Congratulations Erwin!

 

SPO Lauds Passage of Legislation for Small Business Initiative 

The SPO is happy to report that the Legislature passed a bill to establish a temporary small business initiative, small business advisory group, and small business office within the State Procurement Office.   HB 1382 HD1 SD1 CD1, which  is awaiting signature by Gov. David Y.Ige, will help local small businesses, especially those owned by veterans, Native Hawaiians and women, secure state contracts.  Mahalo to Pacific Business News on the article about this legislation.

Link to PBN article: SPO Seeks to Help Small Businesses

Link to HB 1382 HD1 SD1 CD1:  http://www.capitol.hawaii.gov/session2017/bills/HB1382_CD1_.PDF

SPO Successes and Initiatives For Improved Procurement 

2016_10 SPO Fall Newsletter with Successes_sja_rab_FINAL.pub (ReThe State Procurement Office continues to work on a number of initiatives to move toward better, easier, and faster procurement for State Departments/Agencies and all Counties, with the end goal of saving taxpayer dollars.  Please read SPO Successes and Initiatives for details.

Since January 2014, the SPO has achieved many goals and achievements, which were made possible with the help of procurement/purchasing staff, vendors, stakeholders, and legislators.  The SPO thanks all those who have partnered with us on these achievements.

 

 

 Governor extends emergency proclamation for Maui County

Proclamation paves way for disaster relief following September storms

Gov. David Ige signed an extension to the emergency proclamation originally signed on September 16, 2016, to provide relief for disaster damages, losses and suffering following September’s heavy rains and flooding on Maui. The proclamation also serves to protect the public health, safety and welfare of the people of Maui County and to maintain the strength, resources and economic life of the community. The proclamation expires 60 days after it was signed on November 15, 2016, or by a separate proclamation, whichever occurs first.

The supplementary proclamation can be found at Governor’s Supplementary Proclamation.

For the latest information from the Hawai‘i Emergency Management Agency (HIEMA) please go to:

Website: https://dod.hawaii.gov/hiema/

Facebook: https://www.facebook.com/HawaiiEMA/timeline

Twitter: https://twitter.com/HawaiiEMA

Inaugural SPOCon A Successspocon-logo-small

Mahalo to the more than 110 state and county procurement/purchasing personnel, vendors who have statewide contracts, various speakers,  ‘Olelo Community Media, and Governor David Y. Ige for making SPOCon 2016 a success.  SPOCon, a one-day training event held on October 21, 2016, at the Hilton Waikiki Beach included

Please click on each topic for a link to the handout and see SPOCon 2016 Program for the complete program.

‘Olelo Community Media will air SPOCon in various portions on Channel 49 or online at http://www.olelo.org/olelo49/ throughout the month of November.  Click here for airdates.

SPO shared with the attendees on the initiatives to move towards better, easier, and faster procurement for State Departments, Agencies and Counties. To read details about the SPO’s work and future initiatives, please read the SPO Fall Newsletter.

One of the highlights of SPOCon was the award luncheon, which announced the Inaugural Hawaii Procurement Professional Excellence Award. Greg King, Central Purchasing Agent for the County of Maui, was presented the award by Governor David Y. Ige and State Procurement Office Administrator Sarah Allen.  Greg was selected from seven nominees who were recognized by their departments for being extremely hard-working, dedicated and passionate professionals in government procurement.

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Gov. David Y. Ige and SPO Administrator Sarah Allen present the 2016 Procurement Professional Excellence Award to Gregory King during an award luncheon.

The other nominees for 2016 (pictured below) who were also recognized are as follows:

  • Debra Gagne, Office of Enterprise Technology Services (2nd from left)
  • Susan Gray-Ellis, Department of Business, Economic Development and Tourism (3rd from left)
  • Tammy Lee, Department of Transportation (5th from left)
  • Lois Mow, Department of Education (6th from left)
  • Krystal-Lee Tabangcura, Department of Business, Economic Development and Tourism (seventh from left)
  • Erwin Wright, County of Kauai, Department of Finance

2016-Professional-Award-Nominees

They have each demonstrated a continued pursuit of excellence in government procurement and contracting for their respective agencies. They are each looked to for guidance and leadership in procurement. Their commitment, motivation, and vision are only outweighed by their character and pride in public service.

Greg has been in public service for 24 years.  He is in charge of procurement and contracting for all of the agencies in the County of Maui and supervises a staff of six procurement and contract staff in the Purchasing Division.  The Purchasing Division is involved with all goods, services, and construction procurement for the County of Maui.

During FY16, Greg’s team processed over $84 million in goods, services and construction, and 25,000 pCard transactions. Their cost avoidance measures were estimated at $1.2 million.

As Maui County’s Central Purchasing Agent, Greg educated the County Council and the County auditor on the overall value and savings generated by the pCard program. Greg has conducted numerous training sessions for various county groups on procurement policy and procedures and is an instructor in the County Supervisor training academy sponsored by the County of Maui Personnel Division.

Greg carries himself with impeccable leadership and professionalism and is sought out for guidance and direction by his colleagues at both the county and state levels.  He has been appointed to the Procurement Policy Board numerous times.  As a member of the PPB, Greg assists the State Legislature in reviewing and passing rules developed by the State Procurement Office as a result of new legislation passed by the Legislature. He is currently the chair of the PPB, a position he held since 2012, and in the past he has served as a member from 2000 to 2008, and as chair from 2005 to 2008.

Greg is also a member of the National Institute of Government Procurement and earned his Certified Public Procurement Officer designation in 2016, and is the Treasurer of the Alaska-Hawaii Government Procurement Association, which was incorporated in July 2016.

In addition to having a full-time job, Greg is a dedicated member of his community. He has volunteered in various community activities over the years, including the Leukemia Society, the American Heart Association, Community Work Day, Maui Academy of Performing Arts, and the Alzheimer’s Association.

Congratulations to Greg on being named the recipient of the 2016 Hawaii Procurement Professional Excellence Award.

Governor Signs Emergency Proclamation

Gov. David Ige signed a pre-landfall emergency proclamation on Tuesday, as the state prepares for possible impacts from hurricanes Madeline and Lester. The proclamation authorizes the expenditure of state monies for quick and efficient relief of disaster-related damages, losses and suffering resulting from the storms.

“As always, our top priority is protecting the health, safety and overall welfare of our residents and visitors. During this time, I ask residents and visitors to closely follow emergency instructions as we prepare for the storm. I urge you to take immediate steps to protect your families, loved ones, employees and property. The state is monitoring the storms and standing by to support the counties,” said Gov. Ige.

The disaster emergency relief period begins on August 30 and continues through September 9, 2016.

The emergency proclamation can be found at Governor’s Proclamation – Hurricanes Madeline & Lester.

For the latest information from the Hawai‘i Emergency Management Agency (HIEMA) please go to:

Website: https://dod.hawaii.gov/hiema/

Facebook: https://www.facebook.com/HawaiiEMA/timeline

Twitter: https://twitter.com/HawaiiEMA

SPO Holds Cost & Pricing Training on Kauai, Hawaii Island and Maui

Acting Assistant Administrator Mara Smith greets the audience of 40+ in Kahului.

Acting Assistant Administrator Mara Smith greets the audience of 40+ in Kahului.

In July, the SPO visited Kauai, the Big Island of Hawaii and Maui and provided training more than a collective total of 180 state and county personnel on

Contract Management and Procurement Pricing. Mara Smith, Acting Assistant Administrator and Training Director for the SPO, spoke on Contract Management, emphasizing the need for a well thought out plan and how to manage a successful contract. Sarah Allen, SPO Administrator, provided a briefing on how pricing effects each stage in the procurement life-cycle.

SPO Administrator Sarah Allen awaits her turn for training on Cost & Pricing in Kahului.

SPO Administrator Sarah Allen at training on Cost & Pricing in Kahului.

Mahalo to all who coordinated training on their respective island:

  • Ernest “Ernie” Barreira, Assistant Chief Procurement Officer/Budget Chief, Division of Purchasing, Dept. of Finance, County of Kauai;
  • Jeff Dansdill, Purchasing Agent, Purchasing Division, Department of Finance, County of Hawaii
  • Greg King, Purchasing Agent, Purchasing Division, Department of Finance, County of Maui

The SPO plans to hold other training events on the neighbor islands next summer.

 

 

Pictured from left to right: Lisa Miura, Mara Smith, Sarah Allen, Jeff Dansdill, Carey Ann Sasaki and Owen Kano worked together to bring a training session to Hilo. Mahalo to Jeff and Lisa for coordinating this event.

Pictured from left to right: Lisa Miura, Mara Smith, Sarah Allen, Jeff Dansdill, Carey Ann Sasaki and Owen Kano worked together to bring a training session to Hilo. Mahalo to Jeff and Lisa for coordinating this event.

Surplus Online Auction Featured on KHON2 News 

Mahalo to Marisa Yamane of KHON2 for featuring the Surplus Online Auction on its newscast on July 12, 2016.  That story gave a great boost to and created more awareness about the auction site, which sells off small items recovered from local airports in partnership with the Transportation Security Administration.  The money raised from the weekly auction helps fund the Surplus Property Office for salaries, accounting, and other expenses, since the office is self-sufficient.

The story can be viewed on the KHON2 website: Items confiscated at Hawaii airports now up for sale.

 

Governor Extends Emergency Homeless Proclamation

Gov. David Y. Ige today signed a fifth supplemental proclamation on homelessness, which will remain in effect until August of this year. The supplemental proclamation provides an additional 60 days in which to continue the state’s cross-sector collaboration and coordinated efforts with the counties.

“The state has taken strides forward in creating a truly client-centered system among federal, state, county and community organizations,” said the Governor’s Coordinator on Homelessness Scott Morishige. “We are seeing unprecedented alignment of services and a commitment to the common goal of connecting people to permanent, stable housing as quickly as possible.” Morishige made the statement from the Maui Landlord Summit, where he outlined progress in the state’s unified response to homelessness:

Section 8 Landlords Recruited

The Maui Landlord Summit is the fourth in a series of state-supported events aimed at increasing government-assisted housing inventory. It serves to introduce potential landlords to homeless service providers and government agencies providing landlord support. The summit dispels misperceptions about Section 8 and the Housing First program, and is a collaborative effort between the State of Hawai‘i, County of Maui and Maui’s nonprofit service providers.

100 Homeless Families to be Housed

The Hawai‘i Public Housing Authority (HPHA) board has approved emergency rules to establish a special rental subsidy program, which will make available approximately $600,000 to quickly move at least 100 homeless families statewide into housing. HPHA Executive Director Hakim Ouansafi said, “With partnership with local nonprofits, this program is specifically focused on homeless families, where we expect to have an immediate, noticeable and lasting impact across generations.”

Scott Morishige underscored the importance of the developments: “These are two examples of community partnerships the state is forging to effectively and quickly address homelessness.  We are looking at new and creative ways for the community to pool funds, leverage resources, and work in alignment across all sectors to house and stabilize people experiencing homelessness.”

Over the past week, representatives from the United States Interagency Council on Homelessness and the National Governors Association have been in Hawai‘i as the Governor’s office has convened cross-sector meetings with stakeholders from every county and every sector.

 

SPO’s Top Procurement Initiatives

The State Procurement Office (SPO) recognizes the need to improve Procurement across the State. There are four major areas, which if focused on, will greatly aid the success of procurements in cost savings, improved efficiencies and innovation.

What and how the state purchases has great impact on our economy. We need to make the most of what we have. For Hawaii to catch up we need training and development of our procurement workforce for all state agencies and departments. We also need to be an incubator of Acquisition innovation and leverage these cutting-edge ideas to enhance the overall business environment and economic growth of Hawaii.

Click here to read more about the SPO Strategic Plan.

Cost & Pricing Case Study & Training
A Case Study on the Cost/Price Analysis of Voting Equipment and Election Services

Mahalo to all who attended the Cost & Pricing Case Study and Training on Friday, May 13, 2016.  The SPO is also grateful to Nancy Evans Tudor, CPA, for sharing her knowledge and experience on reviewing the award of a contract for voting equipment and election services in 2008.  A video will be made available as an on-demand training this summer.
This training covered:
  • Overview of analyzing a proposal Tools on how to determine if a proposal price is fair and reasonable
  • Different types of comparatives
  • Analysis of historical costs, prior invoices, the current market, and other data
  • Past Experience of Proposal Analysis
  • Questions & Answers

Presented by Nancy Tudor, CPA
Managing Member, Tudor Wilson & Associates CPAs, LLC
Former IRS Auditor, Small Business Administration Accountant Advocate Hawaii 1998, and Provider of Taxation Services

LINKS:

Nominations Open for the Hawaii Procurement Professional Excellence Award

The SPO is now accepting nominations for the Hawaii Procurement Professional Excellence Award in recognition of

  • Noteworthy contributions to procurement include extraordinary business leadership or the design, development or execution of a procurement program or project that furthers an Agency’s / Department’s mission. Such contributions also include performance of any single task that merits special recognition because of its contribution to meeting a contract cost, schedule and performance goals.
  • Noteworthy contributions to contracting policy include the development of a management policy, regulation, data system or other task that significantly enhances the economy, efficiency and effectiveness of an agency’s acquisition system.

For more information, please download the application form.

Deadline: Submit PDF of form by June 17, 2016, 4:30 pm to state.procurement.office@hawaii.gov

 

Governor Signs Second Emergency Proclamation to Address Homelessness

Gov. David Ige signed a second emergency proclamation, which supplements his proclamation of October 16, 2015 and paves the way for additional and continued efforts and assistance to properly ease the homeless emergency that exists in Hawaii. The proclamation expands the homeless emergency response efforts to include efforts at the county level.

SPO Administrator to Provide Procurement Update 

To learn about the latest procurement developments, please join SPO Administrator Sarah Allen for a  on Tuesday, November 17, 2 to 3:30 pm in Room 423 of the Hawaii State Capitol.  This is open to government contractors, legislators, legislative staff, attorneys and community members.  Mahalo to the Hawaii Procurement Institute for organizing this event.

state-capitol-legislature-1

SPO Shares Top Procurement Initiatives

The State Procurement Office (SPO) recognizes the need to improve Procurement across the State. There are four major areas, which if focused on, will greatly aid the success of procurements in cost savings, improved efficiencies and innovation.

What and how the state purchases has great impact on our economy. We need to make the most of what we have. For Hawaii to catch up we need training and development of our procurement workforce for all state agencies and departments. We also need to be an incubator of Acquisition innovation and leverage these cutting-edge ideas to enhance the overall business environment and economic growth of Hawaii.

The SPO recommends four areas of focus in this strategic initiative:
1.Procurement Tools
2.Procurement Workforce
3.Business Development
4.Knowledge Management

Click here to read more about the SPO Strategic Plan.

Governor Ige Signs Supplemental Proclamation to Help Coordinated Outreach Efforts

Gov. David Ige today signed a supplemental proclamation that paves the way for coordinated outreach efforts by service providers and the enforcement of park rules.

Since Gov. Ige signed the Oct. 16 emergency proclamation that was specifically tailored and time-limited to meet specific needs across the state – service providers say 130 homeless individuals have relocated to Kaka‘ako Waterfront Park and Kewalo Basin Park. An estimated 90 individuals (two-thirds) are now at Kaka‘ako Waterfront Park and an estimated 40 individuals (one-third) are now at Kewalo Basin Park.

This population has consistently been offered shelter and services during the continued outreach in the area. Since Oct. 16th, 11 additional individuals from Kaka‘ako have been placed in shelters or permanent housing. However, despite multiple efforts, many individuals decline help.

Homeless campers are violating park rules on closure times. The supplemental proclamation supports a coordinated response that includes continued education of the homeless population regarding the availability of services and compassionate relocation efforts.

There is no additional funding connected to this supplemental proclamation. The governor signed the Oct. 16 emergency proclamation after state agencies identified $1.3 in funding to be allocated to existing homelessness programs that promote permanent housing. (A breakdown is attached to this email).

Enforcement of park closure hours is set to begin as early as November 12th. Over the next two weeks, the state will make every effort to inform and educate the homeless population through outreach by sheriff’s deputies, Hawai‘i Community Development Association staff and service providers who will canvass the parks and provide notices of park closure times and enforcement. Additional signage detailing park closure hours will also be posted.

The state continues to monitor the availability of shelter space as it prepares to enforce closure hours at Kewalo Basin and Kaka‘ako Waterfront Parks.

Governor Ige Signs Emergency Proclamation to Address Homelessness Statewide

Gov. David Ige signed an emergency proclamation that enables the state to quickly funnel money toward the facilitation of: (1) rapid construction of a temporary shelter for homeless families; (2) the immediate extension of existing contracts for homeless services; and (3) an immediate increase in funding for programs that promote immediate housing.

The proclamation suspends, among other statutes and regulations, Chapters 103D and 103F, Hawaii Revised Statutes, to the extent necessary for the purpose of establishing a temporary transitional shelter and facilitating contracting with private providers of homeless services.

SPO in the News

Mahalo to the Star-Advertiser for a well-written article, “Tightening the screws”.  The SPO is already at work on developing procurement initiatives and educational programs for procurement staff.

Construction Precluded from Exemption

The SPO wishes to remind all state departments, agencies and jurisdictions that construction is precluded from exemption under Hawaii Revised Statutes 103D-102(b)(4)(L).  For more information, please refer to SPO 15-355.

SPO Responds to pCard News Article

In response to the Star-Advertiser article entitled, “pCard Program: Can’t Say Good Buy,” dated April 8, 2015, the State Procurement Office (SPO) would like to provide the following information concerning the integrity and oversight of the pCard Program.  The initial pCard program contract was awarded by the State Procurement Office in 2002, re-solicited in 2009 and awarded in 2010.

Unlike reported in the article, the pCard is not a procurement method, but rather, an alternate form of payment for authorized purchases only. It does not change the competitive procurement process.  Employees must comply with all procurement rules & policies, including, but not limited to:

  • Hawaii Procurement Code, HRS 103D
  • Hawaii Administrative Rules, HAR3-122.
  • Departmental policies and procedures.
  • State of Hawaii Purchasing Card Program Procedures and Cardholder Agreement

Benefits of the pCard Program to the State & Counties:

The pCard program increases efficiency for the State and Counties by reducing the amount of purchase orders and processing of individual invoices as well as reducing the amount of individual checks to vendors – one monthly check to the financial institution.

The pCard program reduces expenses; savings of $69 (2014) per transaction over the traditional purchase order (FY2004 – 85,907 vs FY2014 – 12,970)

Goods and services are received faster using the pCard program, and it significantly reduces late payment fees (interest charges assessed if payment made after 30 days)

Rebates are received based on the State’s net purchasing volume (approx. $7.5 million (cumulative) since 2004).

Benefits of the pCard Program to Businesses

The benefits of the pCard Program to businesses include expedited payment to the vendor from within 30 days versus within 3 days. There is no credit risk to business, improved business cash flow and the program reduces costs by eliminating invoicing, accounts received, and deposits.

Protections found in pCard Contract and Program Structure:

The pCard program was designed with various elements of protection and accountability.  All pCards are issued with an authorized employee name and photograph imbedded onto the card.  This is important to minimize identify theft and maximize accountability.  Questionable transactions can be traced to a specific employee to verify purchases made for official government purpose.   This sole element provides great protection to the State because, if any impropriety is found, the person named on the card may be held legally and personally responsible for that transaction.  Absent outright theft of the card, under this program, it is always very clear who is responsible for making the purchase.  Additionally with individual named cards, the State can take advantage of MasterCard Zero Liability Protection Plan and First Hawaiian Banks zero liability policy, which protects the State from fraud and misuse (subject to program terms & conditions).

Another protection found in the program consists of state-wide merchant category blocks.  The following are a few, of the many, categories that are part of the standard statewide blocks:  food, restaurants, gasoline, hotel, cash withdrawals, entertainment, and personal services. The statewide blocks apply to every card issued.  These blocks are imbedded onto the cards by the bank and can only be unblocked by the bank.  Only the Chief Procurement Office and the department/jurisdiction pCard Administrator can approve a request to unblock any of the pre-established blocks. The bank requires written confirmation of any approved request before a code is unblocked. So, the protections of the mandatory blocks are supplemented with a procedure that provides a clear audit trail of accountability of who requested a certain code be unblocked along with the responsible official who approved and requested the bank to unblock the code.

Various other controls are available to all departments/jurisdictions.  Velocity limits control the number of transactions which can be within a specific period of time.  A cardholder may be limited to making a maximum number of transactions per day, week, month, or within a billing cycle. Dollar limits per transaction limits how much can be spent at one time per transaction (can vary by merchant) and sets limits on the amount that can be spent in a specific period of time ranging from daily to monthly.   pCard Administrators have access to cardholder’s transactions 24/7 to for unusual activity.

Contrary to the audit conducted in 2010, as mentioned in the article, SPO has not taken a “largely hands-off approach as Administrator.”  To ensure the integrity of the program, SPO has required that each department utilizing the pCard program designate a “pCard Administrator” charged with maintenance, administration, and monitoring of the cards used in their department.  To support the pCard Administrators, SPO has created policy manuals, on-demand training, continued policy guidance and on-call support. SPO has the responsibility to provide all the information necessary for departments and jurisdictions to conduct pCard activities to best meet its operational needs. SPO does not dictate departmental or jurisdictional policies and procedures, and does not interfere with their operation and management control or their resources.  Departments and jurisdictions know best what controls and processes are appropriate to meet their needs within its available resources; and responsible and accountable for every expenditures and pCard transaction.

In the interest of accessibility and transparency all of these documents and trainings can be found at the SPO website available to employees and the general public.  It must be noted that in response to the 2010 audit of the pCard program the SPO provided an eighteen-page response to that report in which the SPO talks to this program working successfully despite the constraints in resources.

SPO Reminds State Employees and Contractors about Ethics

The SPO (SPO) reminds State/County employees and all contractors/vendors doing business with the government about ethics.

 

For all State/County Employees who are part of procurement, Hawaii Revised Statutes §103D-101 states:

All public employees shall conduct and participate in public procurement in an ethical manner.  In conducting and participating in procurement, public employees shall

(1)     Act as a fiduciary and trustee of public moneys;

(2)     Remain independent from any actual or prospective bidder, offeror, contractor, or business;

(3)     Act only in the public interest;

(4)     Abide by the statutes and administrative rules relating to public procurement;

(5)     Identify and maximize efficiencies in the public procurement process;

(6)     Encourage economic competition

(7)     Avoid the appearance of unethical behavior;

(8)     Avoid social interactions with any actual or prospective bidders during the procurement process;

(9)     Maintain confidentiality to ensure a fair procurement process;

(10)  Remain impartial in dealings with any actual or prospective bidders; and

(11)  Identify and eliminate any conflicts of interest.

Please print Ethics Reminder for State Employees for posting.

 

A friendly reminder for contractors and vendors

Hawaii Revised Statutes §103D-101 states:

Any vendor taking part in the conduct of public procurement shall act in good faith to practice purchasing ethics and display business integrity. This includes:

(1) Avoiding the intent and appearance of unethical behavior or business practices;

(2) Refraining from any activity that would create the appearance of impropriety or conflicts of personal interest and the interests of the State or counties;

(3) Identifying and eliminating any conflicts of interest; and,

(4) Ensuring that all persons are afforded an equal opportunity to compete in a fair and open environment.

Please print Ethics Reminder for Contractors for posting.

SPO Presents “Study on Past Performance Consideration in Hawaii Contracting” and Legislative Initiatives

The State Procurement Office (SPO) submitted its Study on Past Performance Consideration in Hawaii Contracting, with its Appendices, in response to House Concurrent Resolution 176 (SLH 2014), to the State Legislature.   We are grateful to all who participated in this past performance study in 2014. Without this participation, this report would not have been able to capture the many issues and opportunities on past performance in Hawaii government contracting.

The SPO also submitted three legislative initiatives.

A Bill for An Act Relating to Procurement of Professional Services authorizes the Procurement Policy Board (PPB) to adopt administrative rules to provide an effective procurement process when a review committee receives less than three qualified submittals to provide professional services under specific selection criteria. Procurement officers will be authorized to proceed with an alternative method of procurement with less than three qualified persons.

This is a result of the Hawaii Supreme Court decision in Asato v. Procurement Policy Board (2014), which invalidated HAR §3-122-66.  The Court found that there was legislative intent to require a “minimum of three persons” to respond to a solicitation for procurement of professional services under HRS §103D-304.

In October 2014, the PPB voted to repeal HAR §3-122-66 through interim rules pursuant to HRS §103D-202.

A Bill for An Act Relating to Responsibility under the State Procurement Code increases accountability and transparency in state procurement by clarifying that past performance is part of responsibility determination and a procurement officer must consider relevant and recent contractor past performance prior to an award for any state contract.

This also provides a legislative mandate for the PPB to adopt administrative rules to implement past performance accountability measurements and clarify appropriate applications of past performance information.

A Bill for An Act Relating to Communications during Procurement addresses the problem of offerors being left out of the pool of potential awardees because of situations such as an apparent clerical error or unclear relevancy of information provided by an offeror, which currently prevents the offeror from progressing into the pool of responsible offerors eligible to proceed with “discussions.”

The SPO prepared a Legislative Brief as a summary of its proposals presented to the 2015 State Legislature.  The SPO looks forward to working with the State Legislature on these initiatives.

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Legislative Briefing Looks at Procurement Policy Issues

Tuesday, January 13, 2015, 10:30 am, Hawaii State Capitol, Room 423

The SPO and Hawaii Procurement Institute invites you to learn about procurement policy issues that may be considered in the 2015 Legislative Session, such as past performance and acquisition planning.  Invited speakers include SPO Administrator Sarah Allen and Department of Accounting and General Services Comptroller Douglas Murdock.

RSVP by emailing hpiexec@gmail.com or calling (808) 447-1840.

 

SPO Publishes Winter 2014 Newsletter

The SPO Winter 2014 Newsletter, BuyLine, features important articles about Procurement Rule Changes and Small Business input, as well as an informative article about Agile Acquisition.

 

Invitation to Participate in Survey about Hawaii Small Business Set-Aside

The State Procurement Office (SPO) would like to invite small businesses to participate in a short survey about the Hawai‘i small business set-aside.  A small business set-aside is a way for the State to support small business by setting aside certain State contracts, projects, or purchases for competition among qualified small businesses only.  The SPO has begun to facilitate a process aimed at building a solid foundation for the implementation of Hawai‘i’s small business set-aside, and this survey is one aspect of that process.

The Hawai‘i small business set-aside law (HRS §§103D-901 thru -906; Act 50/SLH 2005), currently does not have implementing administrative rules; initial interim rules expired in 2011 without any further guidance.  The SPO has begun to move forward with an initial process to facilitate the development of new administrative rules by working with stakeholders within the small business community and governmental departments.  These meetings and discussions, as well as research done by the SPO related to this matter, have led to the development of this  survey.

The survey is intended to function as a way to engage with a broad range of small business stakeholders and to identify some of the key issues facing small business in Hawai‘i.  The SPO wants this initiative to include input from a broad range of small business community and departmental stakeholders in order to build a solid foundation for the drafting and implementation of the small business set-aside rules.  Your opinions and experiences in small business are important to this process.  The survey contains questions specific to small business owners as well as to prime contractors, sub-contractors, government, and small business advocates. Associations, please distribute this letter and the survey to your membership, and ask them to participate by completing the survey and telling the SPO some of what they know about small business in Hawai‘i.

The Small Business Set-Aside Survey is found at https://www.surveymonkey.com/s/HISmallBiz. It should take only about 30 minutes to complete and will provide invaluable information to the SPO during this process.  Please complete the survey by close of business on Friday, January 2, 2015.  The answers are anonymous; any identifiable information a participant chooses to provide will be for SPO internal use in relation to the small business set-aside initiative and will be kept confidential.

Governor Signs Emergency Proclamation in Anticipation of Tropical Storm Ana

Gov. Neil Abercrombie signed an Emergency Proclamation in anticipation of the arrival of Tropical Storm Ana, which is forecast to impact the state this weekend, possibly as a hurricane.

The proclamation, which includes all of the main Hawaiian Islands, allows the state to draw upon funds for protective measures. It also allows easier access to emergency resources at the state and federal levels, along with the suspension of certain laws as needed for emergency purposes.

“Now is the time for all of us to prepare for Ana,” said Gov. Abercrombie. “The best way the state can prepare is through this proclamation, which allows us to respond quickly to any potential impacts.”

The disaster emergency relief period for the proclamation begins October 16, 2014, and continues through October 24, 2014.

Recommended preparedness actions may be found on the Hawaii Emergency Management Agency website at scd.hawaii.gov. Residents are also encouraged to enroll in local notification systems and monitor local radio and television broadcasts.

 

Governor Presents “Team of the Year” Award to SPO’s HIePRO Team

DAGS’ HIePRO Team of Mara Smith, Bonnie Kahakui and Stacey Kauleinamoku, was named State Team of the Year on Friday, October 3, 2014. To increase the level of transparency through which the state procures goods and services, the team developed the State of Hawaii eProcurement system for issuing solicitations, receiving responses and issuing notices of award. As of April 2014, 156 procurements had been awarded on HIePRO, totaling more than $8.6 million, with an estimated cost savings of more than $1.3 million.

 “These individuals have selflessly given of themselves to enrich the lives of those they serve,” Gov. Abercrombie added. “Their accomplishments perpetuate the aloha spirit and make our state a special place to live and work.”

The Team of the Year, Manager of the Year and Employee of the Year were selected from 51 exceptional individual and group nominees. A volunteer selection committee of five prominent members of the community carefully reviewed nomination packets and rated them according to defined categories. The committee then presented their recommendations for the three awards to Gov. Abercrombie.

Congratulations, Mara, Bonnie and Stacey!

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Governor Signs Supplemental Emergency Proclamation in Preparation of Lava Flow Crossing Highway 130

On September 22, 2014, Gov. Neil Abercrombie signed a supplemental emergency proclamation to include the repair, restorations, rebuilding, or reestablishment of Chain of Craters Road, for use as an alternate emergency route should the June 27th lava flow cross Highway 130 near Pahoa and isolate communities in lower Puna from the rest of Hawaii County.

“Even though the lava flow appears to have slowed to a halt for the time being, the state and Hawaii County are prepared and moving forward together with contingency plans in the event the lava does progress farther,” Gov. Abercrombie said.

 

Today’s proclamation, supplemental to the emergency proclamation signed on Sept. 5, also extends the disaster emergency relief period through Dec. 1, 2014.

 

The original proclamation suspended certain laws as needed for emergency purposes, including state restrictions on reestablishing abandoned roads that may be used should lava cross Highway 130. It also activated the Major Disaster Fund set aside by the state Legislature for disaster relief and facilitates access to emergency resources at the state and federal levels.

 

Residents are also encouraged to enroll in local notification systems and monitor local radio and television broadcasts.

 

 

 

DAGS Selects Employee and Team of the Year from SPO

The Department of Accounting and General Services selected staff from the State Procurement Office as awardees for the Team and Employee of the Year. The HIePRO Team, lead by Mara Smith, Bonnie Kahakui and Stacey Kauleinamoku, was named Team of the Year, and Ronnie Correa was named Employee of the Year.  The awards were presented by Comptroller, Dean Seki, and Governor’s Chief of Staff, Bruce Coppa, during a ceremony on Wednesday, September 10, 2014, in the State Capitol Auditorium.  Mr. Seki also presented the Comptroller’s Perpetual Trophy for the Team of the Year and the Comptroller’s Perpetual Trophy for the Employee of the Year to Sarah Allen, Administrator of the SPO.

The Team of the Year planned, developed and executed HIePRO, the State of Hawaii eProcurement system that issues solicitations, receives responses, and issues notices of award. Beginning January 2014, new procurements were issued in HIePRO and since then, 183 procurements were awarded totaling over $9.9 million with an estimated cost savings of over $1.4 million.  In addition to Mara, Bonnie and Stacey, SPO staffers Ronnie Correa, Wendy Ebisui, Corinne Higa, Andrew Lum, Stan Mato, Michael Ong, Kevin Takaesu, Donna Tsuruda-Kashiwabara, and Carey Sasaki contributed their expertise to the monumental project.  The commitment and professionalism of the HIePRO team to set, and at times re-evaluate, project priorities and ultimately provide a creative and innovative solution earned DAGS’ Team of the Year Award.

Ronnie Correa, Secretary III, was presented the DAGS Employee of the Year Award. Ronnie, who has been with the SPO for the past seven years, has a strong passion for her job and is a team player, dependable, trustworthy, honest, sincere, and personable. She continually exceeds expectations and inspires others to do the same.

In her instrumental supporting SPO’s training program, she maintains the statewide training database of over 7,000 attendees, generates quarterly attendance reports, and facilitates webinars by assisting trainers and responding to questions from attendees.

Ronnie keeps a well-organized stock of office supplies and maintains the office’s administrative files and filing system in a way that makes information readily available. She maintains databases for our contract processing system, mail routing, CPO requests for exemptions, sole source, emergency and contract extensions, training attendance, statewide procurement delegation and forms management.  She has improved the efficiency of logging and created links so that staff need only click on a link to get to the contract, delegation, training attendance or form, essentially creating the rudiments of our business process flow without the help of specialized software.

She reviews all incoming correspondence and assigns 250 actions internally, initiating replies to routine correspondence. She independently reviews on a continuing basis all 40 forms, 20 reports, and multiple administrative procedures, and continually offers suggestions for improvement.

Ronnie worked in a dual role as supervising officer manager to the two SPO administration staff, for the SPO team, as well as Executive Assistant to the incoming Procurement Administrator. Her exceptional organizational skills and commitments to excellence enabled both separated offices to work cohesively, in what could have been a very turbulent time for all the SPO staff.  She was the vital element that ensured and continues to ensure a unified SPO team.  Her natural exuberance, and general caring and interest for each member of the team, has developed an environment of safety and ‘ohana in the SPO office.  A strong leader and superb follower, she exemplifies the best in the SPO staff.

Congratulations to Mara, Bonnie, Stacey and Ronnie for the outstanding work that they have done for the people of Hawaii!

SPO’s HIePRO Team of Stacey Kauleinamoku, Mara Smith and Bonnie Kahakui (from left to right) was named 2014 Team of the Year by the Department of Accounting and General Services. Gov. Neil Abercrombie also named HIePRO Team of the Year of the State of Hawaii at a special awards ceremony on October 3, 2014.

Ronnie Correa was named 2014 Employee of the Year for the Department of Accounting and General Service.

SPO Pueo Award Presented to DCCA Staff for Best Practices

Across the world, the owl serves as a symbol of wisdom and knowledge. Pueo, the Hawaiian Owl has a special place in Hawaii’s mythology. Pueos were silently sailing over the Hawaiian Islands well before the arrival of the first Polynesians. This bird of wisdom is known for offering guidance and protection.

The SPO recognizes state employees who are guardians of procurement with its Pueo Award.  The Pueo Award was presented to Jacqueline Choy and Brent Suyama of the Department of Commerce and Consumer Affairs for Best Practices in Procurement on September 5, 2014, at DCCA’s Annual Incentive and Awards Ceremony.  Jacqueline and Brent were recognized for their due diligence and exemplary documentation in justifying a request for exemption from HRS Chapter 103D in awarding a contract to National Theatre for Children. These Procurement Specialists conducted in-depth market research and cost and pricing analysis that was exceptionally crafted and meaningful. This team understands the vital importance of procurement planning which includes researching what is available in the current market and analyzing what a competitive price should be for the service – essentially safeguarding taxpayer money!

Any acquisition, whether it is exempt or not, must have adequate strategic planning to assure a successful, competitively priced contract.

Well done, Jacqueline and Brent, and thank you Director Keali’i Lopez for your graciousness in allowing us to present at DCCA’s Award Ceremony!

SPO Presents Jacqueline Choy and Brent Suyama of DCCA with the Pueo Award on September 5, 2014.

SPO Presents Jacqueline Choy and Brent Suyama of DCCA with the Pueo Award on September 5, 2014.

 

SPO Administrator to Speak at SBH Sunrise Networking Breakfast

SPO Administrator Sarah Allen will be a special guest speaker at the next Smart Business Hawaii (SBH) Sunrise Networking Breakfast, which will be held Thursday, July 31, 7 – 8:30 am, in the Pineapple Room, Macy’s Ala Moana Center. More information is available on the SBH website.

Topic: Small Business and the Hawaii Economy, and How it Relates to State Procurement

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Cancellation

The Procurement Policy Board Meeting on Tuesday, July 22, 2014, has been cancelled and will be rescheduled for a later date.

Cancellation Notice: July-Cancelled

If you would like to be included on the email notice list for future Procurement Policy Board meetings, please email your name, email address and phone number to procurement.policy.board@hawaii.gov.

 

Compliance & Ethics Essentials Covered at HPI Summer Procurement Series

More than 45 attendees participated in the half-day workshop on Compliance & Ethics Essentials of the Summer Procurement Series.  The workshop was coordinated and moderated by event chair Cori Lau, Esq., (pictured in photo on the right), and featured speakers SPO Administrator Sarah Allen (pictured in photo on the left), Michael Matsumoto, Jessica Wong and Mihoko Ito.  The third in the series of workshops on Protests: Legal Update will be held on Friday, July 25, and will be chaired by Randy Whatoff.

HPI 20140627 Compliance Workshop Allen and Lau photo

 

SPO Administrator Speaks at NCMA Aloha Chapter Training

SPO Administrator Sarah Allen spoke to about 30 Acquisition Professionals at the Aloha Chapter of the National Contract Management Association’s May 15, 2014, meeting about the importance of good leadership and elevating the procurement profession.  She shared her thoughts on valuable tips cited in the article, “Secrets of Superstar Contracting Professionals,” found the May 2014 issue of NCMA’s magazine, Contract Management.  Click here for the complete article: 2014_0515 NCMA Training

2014_05 DOE at NCMA Training

 

Hawaii Procurement Institute Legislative Update

While different organizations disagreed on how to improve or fix state procurement laws, they all agreed that contractors, procurement professionals, lawmakers and the State Procurement Office (SPO) should convene and have proactive discussions on procurement issues before the start of the next legislative session. This was the common message shared by speakers at the 2014 Legislative Update sponsored by the Hawaii Procurement Institute (HPI) on April 30, 2014.  The audience of more than 20 from both the public and private sectors was a good indication that the issue of procurement was of great importance and interest.  Click here for the complete article: 2014 HPI Legislative Update

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