Section 3-141-503 - Exemptions from procurement procedures(a) In addition to the exemptions specifically enumerated in section 103F-101, HRS, the following are also exempted from chapter 103F, HRS: (1) Subawards and subgrants to organizations directed by the funding source;(2) Grants and subsidies as those terms are defined in chapter 42F, HRS;(3) Affiliation agreements with hospitals and other health care providers required for University of Hawaii clinical programs; and(4) Services of psychiatrists and psychologists in criminal and civil proceedings when required by court order or by the rules of court.(b) Certain federally funded contracts. Contracts for health and human services that are wholly or partly funded from federal sources shall be exempt from chapter 103F, HRS, when: (1) The source of the federal funds imposes conditions on the receipt of the federal funds that conflict with the procedures and requirements established by chapter 103F, HRS, and its implementing rules; or(2) The contract is to provide health and human services to implement a federal program that (A) Identifies a target class of beneficiaries;(B) Defines the requirements for a provider to be qualified to participate in the federal program; and(C) Has the price of the provided health and human services dictated by federal law.(c) Further exemptions by the chief procurement officers. Chief procurement officers may for good cause, upon their own initiative, or upon application by the head of a purchasing agency, exempt additional transactions. The head of the purchasing agency shall submit a request for exemption and a notice of exemption from chapter 103F, HRS, to the chief procurement officer. The following procedures shall be followed when requesting an exemption from procurement: (1) The request shall contain: (A) The services to be purchased;(B) The name of the provider;(C) The total contract funds;(D) The term of the contract;(E) An explanation describing how procurement by competitive means is not practicable or not advantageous to the State;(F) A description of procedures followed to ensure maximum fair and open competition in selecting the provider; and(G) A list of state agency personnel who will be involved in the approval process and administration of the contract.(2) The notice shall contain: (A) A statement that the state intends to exempt a purchase from procurement for good cause;(B) A brief description of the services;(C) The name of the provider;(D) The term of the contract;(E) The funding amount of the contract;(F) A statement that any inquiries shall be directed to the designated contact person of the purchasing agency;(G) The name, phone number and e-mail address of the designated contact person;(H) A statement that any concerns to the exemption must be in writing and received by the chief procurement officer within seven days of the date the notice was first posted; and(I) The name and address of the chief procurement officer.(3) The administrator may prescribe the format of the request and notice.(4) The chief procurement officer shall post the request and notice on a internet website widely accessible to the public for seven days prior to any approval action.(5) Before granting an exemption under this subsection, the chief procurement officer shall consult with the administrator.(6) The chief procurement officer shall forward a copy of the request for exemption from chapter 103F, HRS, to the administrator upon approval or disapproval.[Eff 6/19/99; am and comp JAN 23 2006] (Auth: HRS § 103F-106) (Imp: HRS § 103F-101)