Sub-Sections 4.2
4.2 Small Purchases Process
If a requirements falls under the dollar thresholds discussed below, the Agency should purchase the goods, services or construction using the streamlined processes for the small purchase method of procurement.
The following table outlines the small purchase thresholds and the associated types of small purchase procedures state agencies are required to use for each. Agencies may establish stricter internal policies and processes related to small purchases, however they must meet the following requirements at a minimum.
|
Amount of Purchase |
Type of Procurement |
Minimum Number of Quotes |
Affected Agencies |
|
$0.01 – $4,999 |
All (HRS 103D and 103F) |
Adequate, reasonable competition |
All State Agencies |
|
$5,000 – $14,999 |
All (HRS 103D and 103F) |
Minimum Three Quotes (phone, fax, email) |
All State Agencies |
|
$15,000 – $24,999 |
All (HRS 103D and 103F) |
Minimum Three Written Quotes |
Other CPO Jurisdictions Only, and HRS 103F procurements |
|
$15,000 – $99,999 $15,000 – $249,999 |
Good/Services Construction(1)Performance and Payment Bonds are required for all small purchase … Continue reading (HRS 103D) |
Minimum Three Quotes via eProcurement system |
Executive Branch Agencies Only |
|
$25,000 – $99,999 $25,000 – $249,999 |
Good/Services Construction(2)Performance and Payment Bonds are required for all small purchase … Continue reading(HRS 103D) |
Minimum Three Quotes via eProcurement system |
Other CPO Jurisdictions Only |
Note: Professional service procurements for professions under HRS 464 shall use the process set forth in HRS §§103D-304 or 103D-307, if applicable.
The small purchase process may be used for purchases within the small purchase thresholds outline above, and where award is based on the lowest responsive, responsible quote. Small purchases are generally simple to procure and administer while providing for as much competition as is practicable. Public notice and public bid opening are not required. The small purchase method of procurement may not be used when the solicitation requires a vendor to propose something other than price OR where award must be based on criteria other than lowest price. (3)This section does not apply to small purchases under HRS 103F.
Additionally, agencies shall not parcel or artificially or intentionally divide a purchase for the same, like, or related items of goods, services, or construction into several purchases or smaller quantities, in order to utilize the small purchase process and avoid statutory competitive requirements.
If an Executive Branch agency utilizes the small purchase method, then upon finalization of the specifications, the agency should execute the procurement in accordance with the process outlined below.
For purchases of $5,000 but less than $15,000 ($25,000 for HRS 103F), the agency must obtain a minimum of three (3) quotations. Quotes may be obtained by telephone, email, fax, or by posting a solicitation to the respective eProcurement system. All quotes must be documented in the contract file. Although an agency is only required to seek three (3) quotations, it should seek to acquire quotations from as many viable sources as possible to ensure the best price is obtained and maximum competition is generated.
Agencies obtaining quotes outside of an eProcurement system must maintain a small purchase procurement/contract file containing the price quotations requested, quotations received, and a tabulation of prices offered documented on Form SPO-010. Once the quotes have been evaluated, the purchasing officer must document the determination of award on Form SPO-010, and file it with the procurement/contract file, documenting the basis for placing the order with the chosen vendor. The agency must retain these records for audit and review purposes. With the use of an eProcurement system, an agency is NOT required to utilize Form SPO-010 to document. Instead, it can print the award summary report on eProcurement for its small purchase order file.
For the Executive Branch
HRS 103D small purchases of $15,000 to less than $100K goods and services or less than $250K for construction, the agency must procure the requirement by utilizing the State eProcurement system.
After the executive agency has selected a vendor, documented its determination, and verified vendor compliance utilizing Hawaii Compliance Express (HCE) or receipt of equivalent hard copies, it should consider whether the vendor will accept and can be paid in accordance with guidelines for the State purchasing card (p-Card). If so, the agency should provide the P-Card information to the vendor as payment for the small purchase. If not, the purchasing officer will need to forward an approved Purchase Order to the vendor for processing.
Small Purchases awards for goods, services and construction $2,500 and above must be posted to the SPO website. All small purchase awards for health and human services shall be posted to the SPO Health and Human Services contract awards website.
References