HRS §103D-313
What types of contracts the state can use
The state can use any type of contract that helps it, but some cost-based contracts have extra rules. These special contracts are only allowed if a top official decides they are cheaper or necessary, and they cannot be used if they would reduce federal money. Certain notices must be given before these contracts are awarded.
contractorsstate agencies
The statute, as written — Types of contracts
(a) Subject to the limitations of this section, any type of contract that will promote the State's best interests may be used. (b) Cost-reimbursement and cost-plus-a-percentage-of-cost contracts may be used only when the chief procurement officer determines in writing that such a contract is likely to be less costly than any other type of contract or that it is impracticable to obtain the goods, services, or construction required except by means of such a contract. Cost-reimbursement and cost-plus-a-percentage-of-cost contracts shall not be used if their use would jeopardize the receipt of federal assistance moneys or reduce the amount of such assistance under any applicable federal statute or regulation. (c) In addition to the requirements of subsections (a) and (b), a cost-plus-a-percentage-of-cost contract may not be awarded unless: (1) Notice is given to the head of the compliance audit unit, president of the senate, speaker of the house of representatives, and the chairpersons of the senate ways and means and house finance committees; and (2) Notice is conspicuously posted in an area accessible to the public in the office of the chief procurement officer and available for public inspection during normal business hours. (d) The policy board shall adopt rules to implement this section. [L Sp 1993, c 8, pt of §2; am L 1997, c 352, §23]
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