SPO 081 -2027 Hawaii Preference Percentage.pdf
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- Tree/Vegetation Clearing and Trimming
- Solicitation number
- B27000094
- Issued by
- Hawaii
About this file
This is a Procurement Circular issued by the State of Hawaii's State Procurement Office, establishing guidance on the Hawaii Bidder and Offeror Preference provision under Act 087, SLH 2026. The circular applies to all new solicitations released on or after July 1, 2026, conducted under competitive sealed bidding and competitive sealed proposals procedures. The guidance establishes a five percent (5%) preference for Hawaii bidders and offerors in state procurement activities. The preference applies only to contracts with total bids or proposals less than $10,000,000, with a maximum total preference amount not to exceed $500,000. The preference is evaluated only when at least one qualified Hawaii bidder/offeror competes against at least one non-qualified bidder/offeror, and is not applied when all bidders/offerors qualify for the Hawaii preference.
To qualify for the Hawaii preference, bidders and offerors must certify under penalty of perjury using Form SPO-081 that not less than fifty-one percent (51%) of the total direct labor hours required for contract performance will be performed within the state of Hawaii. Qualified bidders/offerors must maintain this qualification throughout contract performance, with failure to do so subjecting the contractor to contract price adjustment equal to the preference value applied and potential debarment. The five percent preference reduction applies for evaluation purposes only and does not reduce the original bid or proposal price; contracts are awarded at the original submitted price. Procurement officers must verify all eligibility requirements before making an award and provide reasonable time to cure any deficiencies. The circular directs all procuring agencies, including state departments, counties, and the University of Hawaii, to incorporate this preference language into solicitations.
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| File | Type | Posted |
|---|---|---|
| Solicitation General Information.docx | DOCX document | |
| AG-008 103D General Conditions (1.10.23).pdf |
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Text version
JOSH GREEN, M.D.
GOVERNOR
BONNIE KAHAKUI
ADMINISTRATOR
DAYNA OMIYA
ASSISTANT ADMINISTRATOR
STATE OF HAWAI I | KA
STATE PROCUREMENT OFFICE
P.O. Box 119 Honolulu, Hawaii 96810-0119
Tel: (808) 586-0554 email: state.procurement.office@hawaii.gov http://spo.hawaii.gov
July 9, 2026
PROCUREMENT CIRCULAR NO. 2027-01
TO: Office of the Governor, Chief Operating Officer Office of the Lieutenant Governor, Chief of Staff Executive Department Heads Hawaii State Public Library System, State Librarian
CC: Administrative Services Offices
FROM: Bonnie Kahakui, Administrator
SUBJECT: Guidance on Act 087, SLH 2026 - Hawaii Bidder and Offeror Preference
The purpose of this Circular is to 1) explain the statutory requirement governing Hawaii bidders and offerors preference provisions and 2) provide guidance to procuring agencies regarding the implementation and application of the provisions.
Act 087, SLH 2026, was enacted to promote in-state economic participation while preserving fairness, transparency, and fiscal responsibility in the procurement process. All new solicitations released on or after July 1, 2026, conducted under §103D-302, HRS, Competitive Sealed Bidding, and §103D-303, Competitive Sealed Proposals, shall include language providing Hawaii bidders and offerors a five per cent (5%) preference.
The following guidelines shall apply:
Procuring Agency The preference shall only apply when the total bid or proposal is less than $10,000,000.
The total preference amount shall not exceed $500,000.
The application of the preference does not conflict with federal law or regulation or a condition for the allocation of federal funds.
The preference applies only when at least one qualified bidder/offeror competes against at least one bidder/offeror that does not qualify for the preference. The preference is not applied when all bidders/offerors qualify for the Hawaii preference and shall not be used to create an advantage between qualified Hawaii bidders/offerors.
The five per cent (5%) preference reduction is only for evaluation purposes and not a reduction in price. The award of the contract shall be at the original bid/proposal price and not at the reduced evaluated price.
Procurement Circular 2027-01 July 9, 2026
Before an award is made to a bidder/offeror receiving the preference, the procurement officer shall verify the bidder/offeror satisfies all the eligibility requirements and shall give the bidder/offeror reasonable time to cure any deficiency.
Bidder/Offeror:
A bidder/offeror shall certify, under penalty of perjury (see Form SPO-081) that:
o Not less than fifty-one (51) per cent of the total direct labor hours required for the performance of the contract will be performed within the state.
o The bidder/offeror shall maintain the qualification as a Hawaii bidder/offer throughout the contract performance.
Failure to maintain qualification as a Hawaii bidder/offeror shall subject the contract price adjustment equal to the value of the preference applied and may constitute cause for debarment.
Recommended Solicitation Language
Preferences:
In accordance with HRS §103D-302 (or HRS §103D-303), the Hawaii bidder (or offeror) preference is applicable to this solicitation, for evaluation purposes only. Bidders (or offerors) desiring to qualify for the five per cent (5%) preference shall submit a completed Hawaii Bidder/Offeror Preference Certification Form (Form SPO-081) with each bid (or proposal) at or before the time set for receipt of bids (or proposals). Certifications submitted for previous or other solicitations will not be accepted.
Questions concerning this Procurement Circular may be directed to Stacey Kauleinamoku-Murakami at
(808) 586-0571 or email stacey.l.kauleinamoku@hawaii.gov, or you may contact me at (808) 587-4701 or email bonnie.a.kahakui@hawaii.gov.
Mahalo.
Attachment (Form SPO-081)
C: Chief Procurement Officers (CPOs):
Department of Education, Superintendent University of Hawaii, Chief Financial Officer Office of Hawaiian Affairs, Chairperson of the Board Hawaii Health Systems Corporation, Chief Executive Officer Judiciary, Administrative Director of the Courts Senate, President House of Representatives, Speaker School Facilities Authority, Executive Director
Counties of Hawaii, Kauai, and Maui, and City & County of Honolulu Executive Branch, Finance Director Legislative Branch, City/County Council Chair Board/Departments of Water Supply, Manager/Chief Engineer Honolulu Authority for Rapid Transportation, Executive Director
STATE OF HAWAII
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