2010-10-22 Cost of Government Commission Minutes

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and Hawai‘i Administrative Rules covers which really is just going to be straight purchase. You want a truck, this is how you go to procure a truck. Within that, the legislators through their infinite wisdom can also use the purchasing power just like other people use the taxing power of the government to accomplish social goals or social engineering. So, you’re going to see their preferences for small businesses. Something’s say you have to give preferences for Hawai‘i built products. Something say, for example, you have to show that people who the government is giving its funds to, also are paying their taxes. They’re paying their insurance. They’re paying their work comp. payments. These are all compliance issues, are the responsibility section of the code that the county has to follow because the county is an entity of the state. Therefore a lot of times when you do something, it’s not necessarily purchasing the cheapest thing from the cheapest vendor, cause that’s where they put in the social engineering part is where they can have the power of their purchasing dollars saying all you vendors, we want you to do X. We want you to do Y. And the way we make you comply and do that is through our purchasing power much like power the government does with its taxing power. Another thing it’s important to remember is that knowing violations of the procurement code is a misdemeanor. It’s a criminal offense. And of course if somebody knowingly violates the law, they are outside of the scope of authority and my office and the county does not represent them because that would be a law violation onto that person who did that illegal thing. If you go to the handout like I said, this is the whole thing. The main types of procurement is Competitive Sealed Bids. When you see Competitive Sealed Bids, this is under 103D-302 Hawai‘i Revised Statutes. This is the one everybody calls shorthand as IFBs – Invitation For Bids. Gilbert will go into that more in detail on the process of those. The next would be Competitive Sealed Proposals under 103D-303. This is what everybody refers to as RFPs or Request for Proposals. So, just like you folks had the amended today for your record, IFBs are bids, or people just talk about it as bids. And RFPs or request for proposals, people just say it’s proposals. The other main source of procurement is Professional Services. So, Professional Services is like an animal unto itself where you’re not sending out for bids but people are sending you. Annually we send out request for professional services and what people do in that sense is they send you a resume. And from there you pick whatever profession you want to hire for that service. Of course you can’t just pick anybody, but there is a whole government qualifications handbook that’s put out by the federal government and it has a list of 200 to 300 kind of specialties where you can hire off of as in a professional service. And of course there is Small Purchases too, which we’ll get into a little later. From here you go to your second page. This will tell you really briefly the processes there to the different kind of bid programs. And as the Finance Director said, Purchasing handles almost everything except for construction bids and construction RFP. Those are handled by Jodie. MS. YANAGIHARA: Good morning. I’ll be giving you a brief overview of the DPW construction bidding process. These are our construction contracts of over $25,000 and above. As Craig mentioned earlier, all construction parties are procured through the Hawai‘i Revised Statutes and Hawai‘i Administrative Rules and the General Requirements of the Covenants. So the steps are first we, All Notice to Bids for Projects and, also addendums or changes to the plans and specs are posted on the State and County of Hawai‘i procurement notices website. And the notification of posting is sent to all contractors by email. Then the sealed bids are opened publicly and awarded to the lowest qualified bidder. The contract is in, we shoot it to the 5