Section 3-124-73.1 - Implementation of Small Business Preference by Heads of Purchasing Agencies(a) Heads of purchasing agencies shall implement the Hawaii Small Business Preference by doing the following: (1) Step #1 - Identification of Relevant Size Standard. Heads of purchasing agencies shall require that each procurement proposed to meet an agency need include in the proposal documents the identification of the applicable small business size standard set by the policy board for the type of work to be solicited.(2) Step #2 - Identification of Individual Procurements for small business Set-Aside. Heads of purchasing agencies shall review each proposed procurement and determine whether the procurement is suitable for performance by businesses meeting the applicable small business size standard. Factors to be considered in making the determination include anticipated manpower requirements, bonding capacity, contractor financing needs, and any other work and responsibility factors relevant to the individual procurement. (i) Procurements identified by the policy board for small business utilization. Pursuant to HAR § 3-124-71, the Small Business Utilization Council recommends to the policy board for its approval the identification of targeted areas of emerging industries, geographic areas within the state, and under-utilized workforce resources where government purchases from small businesses would promote the purposes of HRS § 103D-906. If the proposed procurement falls within an industry or other targeted area approved by the policy board for small business utilization and the work is susceptible of performance by a small business, the head of purchasing agency shall set the procurement aside for competition limited to small businesses.(ii) If the proposed procurement does not fall within an area targeted for small business utilization by the policy board but is susceptible of performance by a small business, the head of the purchasing agency may set the procurement aside for competition limited to small businesses. In exercising discretion to set aside procurements not identified for small business utilization by the policy board, the head of the purchasing agency shall consider whether the set aside of the procurement will further the achievement of any small business utilization goals and whether set aside will promote the development of future competition for work of the nature required by the proposed procurement.(3) Step #3 - Insertion of small business set-aside solicitation provisions. (a) For those procurements the head of purchasing agency sets aside for small business utilization, the head of contracting agency-shall direct insertion into the solicitation of the provisions provided at HAR §§ 3-124-74(a) (1) , (2), (3) and (7).(b) For those procurements the head of purchasing agency sets aside for very small businesses under such criteria as the policy board may establish, the head of the purchasing agency shall direct insertion into the solicitation of the provisions provided at HAR §§ 3-124-74(a)(4)and (7).(4) Step #4 - Identification of individual procurements for full and open competition. If the head of the purchasing agency determines the procurement is not susceptible of performance by a small business, the head of the purchasing agency shall require that the successful competitor for the procurement develop and implement a small business utilization plan as a part of the competitive process. To impose this requirement, the head of purchasing agency shall direct the insertion into the solicitation of the provision at HAR § 3-124-74(a)(5). The Head of the purchasing agency shall also direct the insertion of either the small business subcontracting incentive clause or the liquidated damages clause at HAR §§ 3-124-74(a)(6). The determination of which of these alternate clauses is to be inserted into the solicitation shall be as directed by the chief procurement officer or designee.(5) Step #5 - Competition of All Procurements. The Hawaii small business preference procedures operate solely to identify the appropriate class of competitors for agency procurements. The small business preference procedures do not release the agency from its obligation to use competitive source selection requirements. Accordingly, heads of purchasing agencies shall direct and require that all procurements set aside for small business be processed in compliance with applicable source selection procedures.(b) Reliance upon federal small business preference program principles. In the implementation and interpretation of this section, contractors and procurement officials may reference and rely upon relevant small business preference principles set out in Federal Acquisition Regulation (FAR) Part 19, unless such principles are inconsistent with the provisions of this section.Haw. Code R. § 3-124-73.1
[Eff 3/3/08; am and comp AUG 24 2008] (Auth: HRS §§ 103D-202, 103D-902) (Imp: HRS § 103D-902)