purchasing

Hawaii Resident Bidder Preference

Revised March 2, 2015

Hawaii Revised Statutes, §201-4. The department of business, economic development and tourism may contract with qualified private and public agencies, associations, firms, or individuals within or without Hawaii provided that preference is given to contractors within Hawaii and that preference is given to qualified parties who agree to match funds as provided by statute and rules.

Hawaii Revised Statutes, §103D-1002. Where a bid or proposal contains both Hawaii and non-Hawaii products, for the purpose of selecting the lowest bid or purchase price only, the price or bid offered for a Hawaii product item shall be decreased by subtracting 10% for Class I Hawaii product items bid or offered, or 15% for Class II Hawaii product items bid or offered. The lowest total bid or proposal, taking the preference into consideration, shall be awarded the contract unless the bid or offer provides for additional award criteria. The contract amount of any contract awarded, however, shall be the amount of the bid or price offered, exclusive of the preferences. "Hawaii products" is defined in §103D-1001 as products that are mined, excavated, produced, manufactured, raised, or grown in Hawaii and where the cost of the Hawaii input towards the product exceeds 50% of the total cost of the product, provided that where the value of the Hawaii materials input exceeds 50% of the total cost, the product is classified as Class I and where any agricultural, aquacultural, horticultural, silvicultural, floricultural, or livestock product is raised, grown, or harvested in Hawaii, the product is classified as Class II.

Hawaii Revised Statutes, §103D-1003. All bids submitted for printing, binding, or stationery in which all work will be performed in-state shall receive a 15% preference for purposes of bid evaluation. Where bids are for work performed in-state and out-of-state, for the purpose of selecting the lowest bid submitted only, the bid amount for work performed out-of-state shall be increased by 15%.

Hawaii Revised Statutes, §103D-1006. In any expenditure of public funds for software development, the use of Hawaii software development businesses shall be preferred. For the purpose of selecting the lowest bid or purchase price only, the bid or offer by a non-Hawaii software development business shall be increased by a preference percentage pursuant to rules adopted by the policy board.

Code of Hawaii Rules, §3-124-5. With regard to the preference for Hawaii products, should more than one preference allowed by statute apply, the evaluated price shall be based on application of applicable preferences in the order specified with preferences applied to the original prices: (1) Hawaii products list, pursuant to section 103D-1002, HRS; (2) Tax adjustment for tax exempt offerors, pursuant to section 103D-1008, HRS; (3) Preferred use of Hawaii software development businesses, pursuant to section 103D-1006, HRS; (4) Recycled products, pursuant to section 103D-1005, HRS; (5) Reciprocal preference, pursuant to section 103D-1004, HRS; (6) Printing, binding, and stationery work within the State, pursuant to section 103D-1003, HRS; (7) Preference for persons with disabilities, pursuant to section 103D-1009, HRS. The sum of the preferences, where applicable, shall be added to the original price, except that preferences (1) and (4) shall be subtracted from the Hawaii products or recycled products price.

Code of Hawaii Rules, §3-124-12. With regard to application of the preference for printing, binding, and stationery work, should more than one preference allowed by statute apply, the evaluated price shall be based on application of applicable preferences in the order specified with preferences applied to the original prices: (1) Hawaii products list, pursuant to section 103D-1002, HRS; (2) Tax adjustment for tax exempt offerors, pursuant to section 103D-1008, HRS; (3) Preferred use of Hawaii software development businesses, pursuant to section 103D-1006, HRS; (4) Recycled products, pursuant to section 103D-1005, HRS; (5) Reciprocal preference, pursuant to section 103D-1004, HRS; (6) Printing, binding, and stationery work within the State, pursuant to section 103D-1003, HRS; (7) Preference for persons with disabilities, pursuant to section 103D-1009, HRS. The sum of the preferences, where applicable, shall be added to the original price, except that preferences (1) and (4) shall be subtracted from the Hawaii products or recycled products price.

Code of Hawaii Rules, §3-124-18. With regard to the application of the reciprocal preference, should more than one preference allowed by statute apply, the evaluated price shall be based on application of applicable preferences in the order specified with preferences applied to the original prices: (1) Hawaii products list, pursuant to section 103D-1002, HRS; (2) Tax adjustment for tax exempt offerors, pursuant to section 103D-1008, HRS; (3) Preferred use of Hawaii software development businesses, pursuant to section 103D-1006, HRS; (4) Recycled products, pursuant to section 103D-1005, HRS; (5) Reciprocal preference, pursuant to section 103D-1004, HRS; (6) Printing, binding, and stationery work within the State, pursuant to section 103D-1003, HRS; (7) Preference for persons with disabilities, pursuant to section 103D-1009, HRS. The sum of the preferences, where applicable, shall be added to the original price, except that preferences (1) and (4) shall be subtracted from the Hawaii products or recycled products price.

Code of Hawaii Rules, §3-124-34. With regard to the application of the software development business preference, a price preference will be given to Hawaii software development businesses in the amount of 10% of the price, and will be used for evaluation. When a solicitation specifies that because of federal requirements, the Hawaii software development business preference will not be considered, the price preference shall not apply.

Code of Hawaii Rules, §3-124-35. With regard to the application of the software development business preference, should more than one preference allowed by statute apply, the evaluated price shall be based on application of applicable preferences in the order specified with preferences applied to the original prices: (1) Hawaii products list, pursuant to section 103D-1002, HRS; (2) Tax adjustment for tax exempt offerors, pursuant to section 103D-1008, HRS; (3) Preferred use of Hawaii software development businesses, pursuant to section 103D-1006, HRS; (4) Recycled products, pursuant to section 103D-1005, HRS; (5) Reciprocal preference, pursuant to section 103D-1004, HRS; (6) Printing, binding, and stationery work within the State, pursuant to section 103D-1003, HRS; (7) Preference for persons with disabilities, pursuant to section 103D-1009, HRS. The sum of the preferences, where applicable, shall be added to the original price, except that preferences (1) and (4) shall be subtracted from the Hawaii products or recycled products price.

Code of Hawaii Rules, §3-124-55. With regard to the application of the tax exempt bidder preference, should more than one preference allowed by statute apply, the evaluated price shall be based on application of applicable preferences in the order specified with preferences applied to the original prices: (1) Hawaii products list, pursuant to section 103D-1002, HRS; (2) Tax adjustment for tax exempt offerors, pursuant to section 103D-1008, HRS; (3) Preferred use of Hawaii software development businesses, pursuant to section 103D-1006, HRS; (4) Recycled products, pursuant to section 103D-1005, HRS; (5) Reciprocal preference, pursuant to section 103D-1004, HRS; (6) Printing, binding, and stationery work within the state, pursuant to section 103D-1003, HRS; (7) Preference for persons with disabilities, pursuant to section 103D-1009, HRS. The sum of the preferences, where applicable, shall be added to the original price, except that preferences (1) and (4) shall be subtracted from the Hawaii products or recycled products price.

Code of Hawaii Rules, §3-124-64. With regard to the application of the qualified community rehabilitation program preference, should more than one preference allowed by statute apply, the evaluated price shall be based on application of applicable preferences in the order specified with preferences applied to the original prices: (1) Hawaii products list, pursuant to section 103D-1002, HRS; (2) Tax adjustment for tax exempt offerors, pursuant to section 103D-1008, HRS; (3) Preferred use of Hawaii software development businesses, pursuant to section 103D-1006, HRS; (4) Recycled products, pursuant to section 103D-1005, HRS; (5) Reciprocal preference, pursuant to section 103D-1004, HRS; (6) Printing, binding, and stationery work within the state, pursuant to section 103D-1003, HRS; (7) Preference for persons with disabilities, pursuant to section 103D-1009, HRS. The sum of the preferences, where applicable, shall be added to the original price, except that preferences (1) and (4) shall be subtracted from the Hawaii products or recycled products price.

HAWAII RECIPROCAL PREFERENCE

Hawaii Revised Statutes, §103D-1004. The chief procurement officer may impose a reciprocal preference against bidders from other states which apply preferences. The amount of the reciprocal preference shall be equal to the amount by which the non-resident preference exceeds any preference applied by Hawaii. In determining whether a bidder qualifies as a resident bidder, the definition used by the other state in applying a preference shall apply.

Code of Hawaii Rules, §3-124-17. In the absence of any conflict with federal laws, a reciprocal preference may be imposed against bidders from states that apply preferences. In competitive sealed bidding proposals, a Hawaii resident bidder may be given a reciprocal preference equal to the preference the out-of-state bidder would be given in its own state, which must be equal to the amount the out-of-state preference exceeds Hawaii's preference if the two states' preferences are comparable.