ยง103D-305 - Small purchases; prohibition against parceling.
ยง103D-305ย Small purchases; prohibition
against parceling.ย [Repeal and reenactment on July 1, 2012.ย L 2009, c
175, ยง14(1).] ย (a)ย Procurements of less than $100,000 for goods or
services, or $250,000 for construction shall be made in accordance with procedures
set forth in rules adopted by the policy board that are designed to ensure
administrative simplicity and as much competition as is practicable; provided
that multiple expenditures shall not be created at the inception of a
transaction or project so as to evade the requirements of this chapter; and
provided further that procurement requirements shall not be artificially
divided or parceled so as to constitute a small purchase under this section.
(b)ย Procurements of greater than $50,000 for
construction under subsection (a) shall require security by a performance bond
delivered to the purchasing agency that is:
(1)ย In a form prescribed by the rules of the policy
board;
(2)ย Executed by a surety company authorized to do
business in this State; and
(3)ย In an amount equal to one hundred per cent of the
price specified in the contract,
or shall otherwise be secured by a performance bond
in a manner satisfactory to the purchasing agency.
(c)ย Procurements of $25,000 to less than
$100,000 shall be made in accordance with small purchase procedures; provided
that small purchase procurements through an electronic system shall be required
after the policy board has adopted rules for electronic procurement and
provided training to the affected agency. [L Sp 1993, c 8, pt of ยง2; am L 1994,
c 186, ยง10; am L 1995, c 178, ยง11; am L 1997, c 352, ยง8; am L 2006, c 283, ยง2;
am L 2009, c 175, ยง2]
Note
ย The L 2006, c 283, ยง2 amendment to this section took effect
on October 9, 2006 by the adoption of ยงยง3-122-73 to 3-122-78, Hawaii
Administrative Rules, as required by L 2006, c 283, ยง4.