General Information

Introduction

The Judiciary’s procurement program is in accordance with the Hawaii`i Public Procurement Code, Chapter 103D, Hawaii Revised Statures.  Administrators at the court and program level decide what to buy, how, and from whom, and are guided by the Procurement Code and budgetary provisions.

Procurement Procedures

Each procurement is classified as either a small purchase, large purchase, professional service, sole-source, or emergency.

Small Purchases

Purchases less than $100,000 are referred to as small purchases.  A small purchase requires no less than three price quotations, and is awarded to the responsive and responsible vendor submitting the lowest price or most advantageous quotation. However, for construction purchases costing at least $5,000 but less than $100,000 (Section 103D-305, HRS), award shall be made to the responsive and responsible vendor submitting the lowest price. Price quotations for purchases of $15,000 to less than $100,000 may be solicited via the State of Hawaii eProcurement System (HIePRO) or by publication of the solicitation on this website.  In some circumstances, the competitive sealed bidding (IFB), competitive sealed proposal (RFP) or Sole Source process may be used for a small purchase.

Large Purchases

Purchases $100,000 or more are referred to as large purchases. Generally, procurement is made by competitive sealed bidding (IFB) or competitive sealed proposals (RFP) following publication on the State Procurement Office’s Public Notice System.  Vendors may obtain a copy of the solicitation directly from the Judiciary website. The IFB and RFP documents stipulate the scope of work or requirement, specifications, terms and conditions, and the time, date, and location for submittal of the bid or proposal. The documents also identify the person(s) to contact if you have questions about the procurement.

Professional Services

These are services deemed “professional” by the Hawai`i Public Procurement Code.  With some exceptions, procurement is by competitive sealed bids, competitive sealed proposals, small purchase process, sole source procurement, emergency procurement, or professional services process. The exceptions are when the services are related to criminal and civil proceedings.  Services of legal counsel, guardian ad litem, psychiatrists, and psychologists are exempt from the procurement code, and the Judiciary is able to use any reasonable procurement method to procure such services.

The professional services procurement method involves soliciting names and statements of qualifications from persons or firms, determining qualified persons and firms, and making selection from a list of 3 qualified persons and firms established by a selection committee.

Sole Source

Sole source purchases are made without competition when courts and programs are able to justify procurement from a single source. The Administrative Director of Courts must approve all sole source procurement. The Judiciary publicly posts its intention to procure from a sole source at least 7 days prior to approval being granted by the Administrative Director of Courts. Sole source procurements are for purchases $15,000 or more.  Those less than $15,000 are handled as small purchases.

Emergency

Emergency purchases are made whenever situations arise which create a threat to public health, welfare, safety, or the continued function of the Judiciary, and normal procurement methods cannot be followed.

Taxes and Other Requirements

Vendor are required to include all applicable taxes when submitting bid and RFP documents, and when responding to requests for price quotations. Information on taxes is available from any state district tax office.

Additionally, a tax clearance certificate from both the Hawai‘i Department of Taxation and the IRS, a DLIR Form 27 from the State department of Labor and Industrial Relations, and if applicable, a Certificate of Good Standing from the State Department of Commerce and Consumer Affairs are required prior to entering into a contract and upon final payment of a contract. A tax clearance application Form A-6 is available from any district tax office or by mail by calling 808-587-4242 or 1-800-222-3229. More information on tax clearances is available from the Hawai‘i State Government Home Page.

In lieu of the above paper forms, a single “Certificate of Vendor Compliance” can be obtained online from the Hawaii Compliance Express (HCE), which provides a simpler and faster method for vendors to comply with the above requirements.

Getting Paid

The Judiciary is obligated by statute to make payment to vendors within 30 days of receipt of a proper invoice and satisfactory delivery of goods or performance of services. In the event the Judiciary is unable to comply with the 30-day requirement, the vendor is entitled to interest on the principal amount remaining unpaid at a rate equal to the prime rate for each calendar quarter plus two per cent, but in no event shall exceed twelve (12) percent per year commencing on the 30th day following receipt of the invoice and satisfactory delivery of goods or performance of services.   “Prime rate” means the prime rate as posted in the Wall Street Journal on the first business day of the month preceding the calendar quarter.  This policy does not apply to delays due to bona fide disputes between the vendor and the Judiciary, labor disputes, power or mechanical failure, fire, or act of God or any similar circumstances beyond the control of the Judiciary.  If interest is owed because of a late payment, a separate check for the interest may be issued to the vendor when the interest is $5 or more.  When the interest owed is under $5, the vendor must submit an invoice for the interest.

Invoices are received by the court or program making the procurement, and payment documents are initiated at this level and forwarded to a central accounting staff for review. The documents are then forwarded to the Department of Accounting and General Services for the issuance and mailing of checks.  If you have questions about the status of any payment, please contact the fiscal officer of the court or program procuring the goods or services.