Hawaii Revised Statutes

Division 1. Government

Title 9. Public Property, Purchasing and Contracting

Chapter 103D. Hawaii Public Procurement Code

Part VIII. Government Relations and Cooperative Purchasing


HAW. REV. STAT. ANN. § 103D-801. Definitions.

As used in this part, unless the context requires otherwise:

“Cooperative purchasing” means procurement conducted by a public or external procurement unit with one or more public procurement units, external procurement units, or nonprofit private procurement units, pursuant to this chapter.

“External procurement unit” means any buying organization not located in this State which, if located in this State, would qualify as a public procurement unit. An agency of the United States is an external procurement unit.

“Local public procurement unit” means any county of the State or public agency of any county, public authority, educational, health, or other institution, and to the extent provided by law, any other entity which expends public funds for the procurement of goods, services, and construction.

“Nonprofit private procurement unit” means a nonprofit health or human services organization that receives public funds to provide services to the public.

“Public procurement unit” means either a local public procurement unit or a state public procurement unit.

“State public procurement unit” means the office of the chief procurement officer and any other purchasing agency of this State.

HRS §103D-802. Cooperative purchasing authorized.

A public procurement unit may either participate in, sponsor, conduct, or administer a cooperative purchasing agreement for the procurement of goods, services, or construction with one or more public procurement units, external procurement units, or nonprofit private procurement units pursuant to rules adopted by the policy board and an agreement entered into between the participants. The cooperative purchasing may include, but shall not be limited to, joint or multi-party contracts between public procurement units, and state public procurement unit requirements contracts which are made available to local public procurement units. Cooperative purchasing agreements may be exempt from preferences pursuant to part X.

Hawaii Constitution

Article XVI. General and Miscellaneous Provisions


Section 5. The legislature may provide for cooperation on the part of this State and its political subdivisions with the United States, or other states and territories, or their political subdivisions, in matters affecting the public health, safety and general welfare. Funds may be appropriated to effect such cooperation.

Hawaii Administrative Rules

Title 3. Department of Accounting and General Services

Subtitle 11. Procurement Policy Board

Chapter 120. General Provisions

HAW. CODE R. §3-120-3 Applicability. These rules shall apply to:

(2) All procurement contracts made by governmental bodies, whether the consideration for the contract is cash, revenues, realizations, receipts, or earnings, any of which the State receives or is owed; in-kind benefits; or forbearance; provided that nothing in this chapter or rules adopted hereunder shall prevent any governmental body from complying with the terms and conditions of any other grant, gift,

bequest, or cooperative agreement.

Chapter 128. Governmental Relations and Cooperative Purchasing

HAR §3-128-2 Cooperative purchasing subject to chapter 103D, HRS

(a) Prior written approval of the chief procurement officer is required before entering into a cooperative purchasing agreement.

(b) Procurement by cooperative purchasing agreements shall be conducted in compliance with the requirements of chapter 103D, HRS, and title 3, subtitle 11, except when the cooperative agreement is by an external procurement unit; provided:

(1) The public procurement unit complies with the public notice requirements of section 3-128-4; and

(2) The external procurement unit complies with its respective public notice requirements and includes the public procurement unit in its notice and solicitation as a participating entity.

(c) Contracts described in section 3-122-143, are the principal contract types for cooperative purchasing agreements subject to any restrictions specified in this chapter.

(d) Agencies shall not enter into or “piggyback” an existing cooperative purchasing agreement, including contracts issued the federal government or other or local government. The term “piggyback” defined as procuring goods, services, or construction using another agency contract without prior public notice and intent to participate.

HAR §3-128-3 Cooperative purchasing agreements between procurement units.

All cooperative purchasing agreements shall provide that:

(1) procurement unit shall designated as lead agency for the procurement;

(2) an order for any good or service shall be placed on an as needed basis by the participating procurement units in accordance with the terms and conditions of the agreement;

(3) payment for any good or service shall be the exclusive responsibility of the procurement unit which placed the order;

(4) Inspection and acceptance of any or service shall be the exclusive obligation of the procurement unit which placed the order;

(5) The lead agency for the procurement may terminate the cooperative agreement with a procurement unit for failure of that unit to comply with the terms of the contract;

(6) The exercise of any warranty rights attached to any good or service obtained through a purchase order shall be the exclusive right of the procurement unit which placed the order;

(7) and Failure of a procurement unit that is procuring the good or service from a cooperative agreement contract to secure performance from the contractor pursuant to its terms and conditions, may not necessarily preclude the remaining procurement units from obtaining goods and services from the cooperative agreement contract.

HAR §3-128-4 Public notice of cooperative purchasing agreements between public procurement units and external procurement activities.

Any public procurement unit intending to participate in an external procurement unit’s cooperative purchasing agreement, shall place a public notice within the State pursuant to section 3-122-16.03, of the external procurement unit’s solicitation. The notice shall also include a statement of the public procurement unit’s intent to participate in such cooperative purchasing agreement.