Procurement Wizard

4.5        Professional Services

As discussed in the planning stage, professional services are those services as defined by HRS 103D-104 including the professional and scientific occupation series contained in the United States Office of Personnel Management’s Qualifications Standards Handbook.

Design professional services furnished by licensees under HRS Chapter 464 shall be procured by this method. ⁽¹⁾Only if the emergency requirements of HRS §103D-307 are met can … Continue reading Other professional services may be procured by this process but may also be procured using other available methods of procurement.

The professional services procurement method require the purchasing agency to perform a multi-phased procurement process. The high-level process with phases and associated steps for each is provide below.

The detailed process flow the Procurement Officer will follow is shown in the diagram below.

4.5.1        Solicit

Prior to the beginning of the fiscal year during which the agency anticipates the need to contract for professional services, or as soon as the need is identified, a notice shall be published on the SPO Procurement Notices site, or jurisdictional equivalent. The agency may also use additional methods deemed useful to advertise the need to vendors, such as newspapers, publications, mail, email, and fax.

The notice shall request all applicants interested in providing professional services for the agency to submit an expression of interest and a statement of qualifications for evaluation.

4.5.2        Review committee

Pursuant to HRS §103D-304(c), the HOPA shall designate a Review Committee to evaluate statements of qualifications for the purpose of compiling a list of qualified professionals. The Review Committee reviews and evaluates the submitted documents, and prepares a list of qualified professionals. The Review Committee shall consist of no less than three persons with sufficient education, training, licenses or credentials for the professional services required. If the notice states, firms may be added to the list of qualified professionals throughout the year. Firms included on the list of qualified persons may amend their statements of qualifications as necessary or appropriate. Once established, professional services may be procured from the relevant list of qualified professionals developed by the Review Committee(s). Deputy Directors or equivalent appointed positions shall not serve on Review or Selection Committees.

4.5.3        Selection Committee

When the purchasing agency identifies a need for professional services during the fiscal year, the HOPA must designate a Selection Committee, which consists of at least three persons with sufficient education, training, and licenses or credentials in the area of service required. The Selection Committee establishes selection criteria for the project, and using the list of qualified professionals, recommends a minimum of three qualified professionals, in rank order, to the HOPA.

In accordance with HRS §103D-304(e) the following selection criteria, set forth in descending order of importance, shall be used to evaluate the list of qualified professionals:

1. Experience and professional qualifications relevant to the project type
2. Past performance on projects of similar scope for public agencies or private industry, including corrective actions and other responses to notices of deficiencies
3. Capacity to accomplish the work in the required time
4. Any additional criteria determined in writing by the selection committee to be relevant to the purchasing agency’s needs or necessary and appropriate to ensure full, open, and fair competition for professional services contracts.

The selection committee shall evaluate the submissions of qualified professionals on the list against the selection criteria.  The committee may conduct confidential discussions with any person who is included on the list regarding the services required and the services they are able to provide.  In conducting discussions, there shall be no disclosure of any information derived from the competing professional service offerors.

The selection committee shall rank a minimum of three persons based on the selection criteria and send the ranking to the HOPA.  The contract file shall contain a copy of the summary of qualifications for the ranking of each of the persons provided to the head of the purchasing agency for contract negotiations.  If more than one person holds the same qualifications under this section, the selection committee shall rank the persons in a manner that ensures equal distribution of contracts among the persons holding the same qualifications.  The recommendations of the selection committee shall not be overturned without due cause.

Individuals serving on the Selection Committee must complete an affidavit (Form SPO-024 or equivalent) to attest there are no potential conflicts of interest, to attest to a non-disclosure of source selection information and to advise members their names become public upon contract award.

4.5.4        Negotiate and Award

In accordance with HRS §103D-304(h), based on the ranking developed by the Selection Committee, the HOPA, or designee, shall negotiate a contract with the first ranked person including a rate of compensation which is fair and reasonable, established in writing, and based upon the estimated value, scope, complexity, and nature of the services to be rendered. If negotiations fail with the first ranked professional then negotiations shall be formally terminated and negotiations with the second ranked professional shall be pursued. Failing to reach an agreement with the second ranked person, negotiations with the third ranked firm, shall commence.  Should negotiations fail to reach an agreement with the third ranked firm then the Selection Committee may be called upon to select a minimum of three additional qualified service providers with which to begin negotiations. See discussion below on determining fair and reasonable prices via cost and/or price analysis.

If there are less than three (3) qualified professionals to be submitted by the Selection Committee, the head of the agency shall:

1. Resolicit for the service again in an effort to receive additional expressions of interest and statements of qualifications from qualified professionals;
2. Cancel the procurement;
3. If procuring for a professionals other than design professionals licensed under HRS Chapter 464, the purchasing agency may utilize another method of procurement.

Professional services contracts exceeding $5,000 shall be posted to the applicable agency website within seven (7) days of contract award. Information that shall be posted includes:

1. The names of the qualified service providers ranked by the Selection Committee;
2. The name of the person or organization receiving the award;
3. The dollar amount of the contract;
4. The name of the HOPA or designee making the selection; and
5. Any relationship of the principals to the official making the award.

With the exception of design professionals licensed under Chapter 464, professional services contracts under the small purchase threshold established in HRS §103D-305, may be negotiated by the HOPA with at least two persons from the list of qualified professionals in the manner described above.  Qualified professionals must still be ranked and negotiations conducted in accordance with the criteria and procedure outlined above.  Please see Section 4.8 for debrief and protest procedures, as required.

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