Section 3-122-223 - Bid security(a) Bid security shall be required for: (1) Construction bids exceeding the limits of section 103D-305, HRS;(2) Goods and services bids exceeding the limits of section 103D-305, HRS, when the head of a purchasing agency has secured the approval of the chief procurement officer; and(3) Federally funded contracts wherein the conditions of the funding requires performance or payment bonds or both.(b) Bid security, when required, shall be in an amount equal to at least five per cent of the base bid and additive alternates or in an amount required by the terms of the federal funding.(c) If a contractor fails to accompany its offer with the bid security when required, the offer shall then be deemed nonresponsive in accordance with the definition of "responsive bidder or offeror" in section 3-120-2, except as provided by subsection (d).(d) If an offer does not comply with the security requirements of this subchapter, the offer shall be rejected as nonresponsive, unless the failure to comply is determined by the chief procurement officer, the head of a purchasing agency, or a designee of either officer, to be nonsequential where: (1) Only one offer is received, and there is not sufficient time to resolicit the contract;(2) The amount of the bid security submitted, though less than the amount required by the solicitation, is equal to or greater than the difference in the price stated in the next higher acceptable offer plus an amount to cover reasonable administrative costs and expenses, including the cost of rebidding the project, resulting from the failure of the bonded bidder to enter into a contract for the work bid; or(3) The bid security becomes inadequate as a result of the correction of a mistake in the offer or offer modification in accordance with section 3-122-31, if the offeror increases the amount of security to required limits within the time established by the procurement officer.(e) When it is determined that failure to comply with required bid security is nonsubstantial, the chief procurement officer, the head of a purchasing agency, or a designee of either officer shall indicate the reasons for that determination in writing and a copy of the determination shall be kept in the contract file and made available to the public upon request.[Eff 12/15/95; am and comp 11/17/97; am and comp MAR 21 2008] (Auth: HRS §§ 103D-202, 103D-323) (Imp: HRS § 103D-323)