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HePS Buyer FAQ

 

  1. What is HePS?
  2. What are some benefits of using HePS?
  3. What is SicommNet?
  4. When are state agencies required to utilize HePS?
  5. Is HePS being used for SPO price and vendor list contracts?
  6. What happens if the quote is less than $15,000?
  7. When can state agencies NOT use HePS for purchases less than the small purchase threshhold?
  8. What can be done when the lowest quote is too high?
  9. Do we have to award to the lowest priced quotation?

  10. If no quotes are received for a HePS solicitation, can I award to whoever I can find?

  11. In "Award Type" what's the difference between definite and indefinite delivery?
  12. Are there approvals in HePS? If so, how do they work?
  13. How are approvals established in HePS?
  14. Is there a way I can tell if I have an approver or if I am responsible for approving?
  15. What is proof of compliance/compliance documentation?
  16. When must a buyer obtain proof of compliance?
  17. Is proof of compliance required when using HePS?
  18. If a vendor is not in Hawaii Compliance Express, can the quote be rejected?

  19. Are vendors located outside of Hawaii require to demonstrate proof of compliance?

  20. Is there a way to check Hawaii Compliance Express if a buyer is not in the process of awarding?

  21. Where can a buyer find proof of compliance after award in HePS?

  22. If a buyer expects a solicitation on HePS to be over $15,000 but award is less, is the buyer required to obtain proof of compliance?

  23. What statutes, administrative rules, procurement circulars etc. do buyers need to know to conduct a small purchase request for quote on HePS?
  24. For HePS awards, what documents must accompany the PO to pre-audit?
  25. Who should buyers or approvers contact if the password is forgotten?
  26. Who should buyers or approvers contact with questions?

 

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What is HePS?

HePS is the electronic procurement system for the State of Hawaii, a system for issuing solicitations, receiving responses, and issuing notices of award.  While the Procurement Notices for Solicitation website could be considered part of an eProcurement system, eProcurement, and HePS is much more and has several elements. Our eProcurement system is hosted by SicommNet and has the following elements:

  1. Vendor registration: Vendors register on HePS by enter standard information such as company name and address,  and create a profile identifying the categories of goods, services or construction the vendor provides.  Government purchasers can search HePS prior to solicitation to ensure vendors are registered for the goods, services or construction they need to procure.
  2. Electronic Solicitations: Government purchasers (called buyers in HePS) enter their solicitation on electronic forms and may attach files, if needed.  Once released, posted on the internet via HePS the electronic solicitations are available in a standard format to vendors registered on HePS.
  3. E-mail notification: Each evening e-mails are sent to vendors registered for the categories of goods and services being procured, providing a link directly to the solicitation.  Amendments are also issued electronically with e-mail notifications sent to vendors.
  4. Submission of electronic quotes. Vendors submit quotes electronically in as few as three clicks and may also add comments or attach files as appropriate.  A vendor may amend the quote electronically as many times as necessary up to the submission due date and time.
  5. Electronic award: Once a solicitation closes, the HePS buyer reviews the submissions.  When a decision is made, the buyer notifies the vendor on HePS and the awarded vendor receives a notice of award in an e-mail.  Non-selected offerors are also notified.
  6. Searchable:  Because the solicitations, responses, and notices of award are electronic, data is kept in a database and is searchable.  Vendors and buyers may search awards and solicitations.

 

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What are some benefits of using HePS?

  • Open access: Vendors have more opportunities to submit quotes for small purchases.  Vendors who have submitted quotes are notified via e-mail when the solicitation is awarded and have access to an abstract listing all vendor names and their quotes.
  • Record keeping/Search Function: All solicitations are kept in one place on HePS.  HePS buyers can search HePS for all solicitations;   vendors can search the solicitations for which they have submitted quotes for a year.
  • Sharing Information/Streamlining: Solicitations that have been issued in the past may be searched, restaged, amended as necessary and reissued when new needs arise.  HePS buyers can search for and restage any solicitation issued on HePS, not just their own.  This allows a sharing of knowledge and keeps state agencies from having to “reinvent the wheel.”
  • pCard enabled.  The purchasing agency may utilize a pCard (similar to a credit card) on HePS rather than issuing a purchase order thus speeding up payment to vendors.

 

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What is SicommNet?

SicommNet is the company providing HePS for the State of Hawaii.

SicommNet is an application service provider, which means there is no software to download to use HePS.  With your login/password you can access HePS from anywhere you have access to the internet.

 

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When are state agencies required to utilize HePS?

Executive branch agencies are required to use HePS for all small purchase requests for quotes from $15,000 to lthe current threshold for small purchases pursuant to Act 175 SLH 2009, section 2* and Procurment  Circular 2009-15.

  • less than $100,000 for goods and services and
  • less than $250,000 for construction**.


Other jurisdictions must use an eProcurement system for all small purchase requests for quotes from $25,000 to $100,000*. The small purchase thresholds are lthe same for other jurisdictions (less than $100,000 for goods and services and less than $250,000 for construction**.)

Reference: Procurement Circular 2009-14

Note:

*Act 175, SLH 2009, Section 2, is repealed effective 7/1/12 at which time the threshold for small purchases will return to less than $50,000.
**Small purchase construction awards of $25,000 and above require a performance bond. See Act 175 SLH 2009.

 

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Is HePS being used for SPO price and vendor list contracts?

Price and vendor lists are not on HePS.  Agencies continue following the instructions of the particular price/vendor list.

 

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What happens if the quote is less than $15,000?

Agencies may solicit quotes when it is known the cost will be less than $15,000 and it is permissible to award for less than $15,000. There are many solicitations on HePS for less than $15,000.

 

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When can state agencies not use HePS for purchases less than the small purchase threshold?

At this time, do not use HePS for:

  • Price or vendor list purchases (including purchases from WSCA List Contracts in which the State of Hawaii participates);
  • Sole Source procurements pursuant to  HRS §103D-306;

Unless otherwise directed, HePS is not required for but may be used, as applicable:

  • Emergency procurements pursuant to HRS §103D-307;
  • Exemptions;
  • Purchases less than $15,000.

Note:  Small purchases of design professional services furnished by licensees under HRS chapter 464 shall be procured in accordance with HRS §1030-304 and not under small purchases method of source selection pursuant to HRS §103D-305 and HAR 3-122 Subchapter 8.

 

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What can be done when the lowest quote is too high?

If the quote is a little too high, you may contact the vendor who submitted the lowest quote to lower the total price by proportionately decreasing the quantity of the goods/services.

You can also cancel the solicitation, revise the specifications and resolicit as a small purchase request for quote.

If, upon receiving quotes the cost is above the small purchase of service method of source selection threshold even if you revise the specifications, you may cancel the solicitation and and solicit using the appropriate method of source selection such as competitive sealed bidding, also known as an IFB (Invitation for Bid) or competitive sealed proposals, also known as RFP (Request for Proposals).

If you choose to cancel the solicitation, use the optional e-mail in HePS to advise the vendors who responded.  If you know you will be re-soliciting as an RFQ or using another method, let the responding vendors know that as well.

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Do we have to award to the lowest priced quotation?

When the lowest quotation meets the minimum specifications of the solicitation, awards shall be made to the lowest responsive, responsible quotation.

In small purchase request for quotations, there may be a few instances when it is not practicable.

When it is not practicable to award to the lowest responsive, responsible quotation, award may be made to the quote offering best value to the State.(See HAR §3-122-75)

“…Considering all criteria, including but not limited to quality, warranty, and delivery; award shall be made to the lowest responsive, responsible quotation received.

…When award to the lowest responsive, responsible quotation is not practicable, award shall be made to the vendor whose quotation provides the best value to the State. Written determination for the selection shall be placed in the procurement file….”

Best value is defined as:

"...the most advantageous offer determined by evaluating and comparing all relevant criteria in addition to price so that the offer meeting the overall combination that best serves the State is selected.. These criteria may include, in addition to others, the total cost of ownership, performance history of the vendor, quality of goods, services, or construction, delivery, and proposed technical performance..." (see HAR §3-122-1)

Should the lowest quote received not be practicable for award, the determinants of best value should be reflected in the specifications.

For example: a product with a warranty

The solicitation requires a minimum of a 1 year warranty.

Vendor 1 offers the product with a 1 year warranty for $15,200.
Vendor 2 offers the same product with a 5 year warranty for S15,300.
You may award to vendor 2 if it is the best value.

Justification for an award to other than lowest quotation shall be included in HePS in the Competition Comments field.

Remember, awards of small purchases are visible to all vendors in HePS. To avoid possible complaints/protests ensure justification is clear, complete and in accordance with Hawaii Administrative Rules, procurement circulars and departmental procedures.  Most importantly, your selection must be fair and perceived as such.

 

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If no quotes are received for a HePS solicitation, can I award to whoever I can find?

HAR §3-122-78(d)  indicates that if no responsive, responsible quotes are received the head of the purchasing agency may make the determination that it is neither advantageous or practicable to issue another solicitation on the e-procurement system.  As the buyer, your responsibility is to provide the justification for the head of the purchasing agency to make that determination.   Here are some questions you need to be able to answer in the affirmative and with an explanation, as appropriate.

  • Was the solicitation out for an adequate amount of time?
    (Recommended minimum is 5 working days.)
  • Did the buyer ensure the appropriate vendors were in HePS prior to issuing the solicitation? 
    If the buyer didn't, then then the proper homework was not done.  (In the past, when buyers were required to obtain 3 quotes, buyers were required to find at least 3 vendors.)
  • As appropriate, did the buyer notify previous vendors of the upcoming solicitation on HePS, advise them to call the vendor liaison for our vendor for HePS, (Michael Matsumoto, , SicommNet), and  provide a list of vendors (with contact information) to the vendor liaiason?
  • Did the buyer issue the solicitation with the appropriate commodity code to ensure it reached the right vendors?
  • Were the specifications complete and clear?

If the answer to any of these questions is no, the solicitation should be corrected and reissued on HePS.

 

If the answer to all questions above is yes, the following should be addressed and submitted to the head of the purchasing agency for approval:

  • whether specifications can be revised
    (if they cannot, explain why);
  • time constraints
    (explain why there is no time to reissue, specify the dates the solicitation opened and submittal deadline);
  • competition in the marketplace
    (efforts made to contact vendors; current market conditions for the goods, services or construction;
    whether there were appropriate vendors for the commodity code used in the solicitation and
    whether the buyer contacted appropriate vendors and advised them a solicitation was going to be issued on HePS.)

Documentation of the head of the purchasing agency determination shall be maintained in the procurement file.

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In "Award Type" what's the difference between definite and indefinite award?

Definite award is one where a specific quantity of goods is delivered by a specific date. It can also be a service of a short duration where the quantity and price are known.

Examples:

Delivery of 1000 widgets by March 31st.

Job of installing an upgrade for an office over the period of a week.

Indefinite award is one for a contract that starts on a certain date and goes on for a period of time such as a service or requirements contract. The exact quantity or cost of the total service may not be definite.

Examples:

Tree trimming services from January 1st to December 31st.

Contract for a supplier of widgets From July 1st to  June 30th where widget orders will be placed periodically or as needed.

 

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Are there approvals in HePS? If so, how do they work?

HePS has the capability for electronic approvals.  While electronic approvals are an optional feature and not required, it is a good idea to establish and use electronic approvals  in accordance with your procurement process.  Approval routes must be established by your system administrator upon request by the administrator/supervsior of your division/branch. SPO will provide assistance.  Should a department/division/branch need assistance, please contact  SPO, Mara Smith.

Approvals can be established at two points, either prior to issuing:

  • a solicitation; or
  • an award.

The buyer may have more than one approver in succession (Approver A approves, then Approver B approves.)

When a buyer has an approval route the following occurs:

  • Buyer completes the solicitation and selects the submit button.
  • Instead of being placed on the internet, the solicitation is placed in a holding pattern
  • HePS sends an e-mail with a link to the approver.
  • When the approver opens the e-mail and selects the link, the approver is logged in to his/her account.  The approver will see all solicitations waiting for approval.
  • When the approver selects a solicitation, the approver may review and then either approve or disapprove the solicitation.
  • If approved, the solicitation is either:
    • released to the internet or
    • the next approver, if there is one, will get an e-mail.  The buyer will also get an e-mail. advising that the solicitation has been approved by Approver A.
  • If disapproved, the approver must enter a reason.  After submitting, HePS sends the buyer an e-mail advising the buyer that it has been disapproved.
  • The buyer may then log in and review the disapproved solicitation, edit it as appropriate and resubmit.  The solicitation will go through the approval process again.

 

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How are approvals established in HePS?

HePS Administrators establish approvals.

Approval Routing is a 3 step process.

  1. Creation of a HePS approver account (if the approver does not already have an account.)
  2. Creation of the approval route.  (Routes may have up to 5 sequential approvers and may be assigned to documents such as small purchase or invitation for bid or awards or other criteria)
  3. Assignment of an approval route to a buyer.

See the training materials and references for HePS 204 Understanding Approvals.  Check with your Department/CPO Jurisdiction HePS administrator for procedures to request an approval route be established and assigned to a buyer.

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Is there a way I can tell if I have an approver for my solicitations/awards or if I am responsible for approving?


Yes. See the How Do I...Check my Approval Responsibilities and Approval Routes to which my Solicitations/Awards are Subject?

 

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What is proof of compliance/compliance documentation?

All vendors doing business with the State are required to comply with all applicable statutes, administrative rules and procedures.

 

Proof of vendor compliance (compliance documentation) is required. Acceptable proof/documentation for the State is obtained by subscribing to Hawaii Compliance Express.  Proof/documentation of compliance is required for awards of $2,500 and above and may be required for all awards at the discretion of the purchasing agency or Chief Procurement Officer.

 

Vendors register in Hawaii Compliance Express to provide proof of compliance for the following:

 

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When must a buyer obtain proof of compliance?

 

Proof of compliance is required prior to awards of small purchase requests for quotes of $2,500 and greater and for all competitive sealed bidding (Invitations for Bids- IFB) and all competitive Sealed Proposals (requests for proposals-RFPS).

 

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Is proof of compliance required when using HePS?

 

Yes. Proof of compliance is required.

 

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If a vendor is not in Hawaii Compliance Express, can the quote be rejected?

Providing proof of compliance is an issue of vendor responsibility as defined in HRS.  If a vendor is simply not registered in Hawaii Compliance Express but actually compliant with the requirements, the vendor should be given reasonable opportunity to register and provide proof of compliance.

 

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Are vendors located outside of Hawaii required to demonstrate proof of compliance?

Yes.  Vendors located outside the State of Hawaii must demonstrate proof of compliance.

 

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Is there a way to check Hawaii Compliance Express (HCE) if a buyer is not in the process of awarding?

 

If you are not ready to award and the solicitation has closed (awaiting award), you may click the award button.  HePS will reach out to HCE and provide compliance information about the vendor.  You do not need to continue with the award.  Compliance information is saved in HePS only you complete the award.

At other  times, you must have an HCE account to check proof of compliance. To obtain an HCE account, check with your department to ensure you are authorized  and see the Hawaii Compliance Express FAQ for procedures to obtain an account.

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Where can a buyer find proof of compliance after award in HePS?

 

HePS only saves compliance information at the time of award in HePS.  After award, compliance information may be obtained by logging into Hawaii Compliance Express (HCE). To obtain an HCE account, check with your department to ensure you are authorized  and see the Hawaii Compliance Express FAQ for the procedures to obtain an account.

 

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If a buyer expects a solicitation on HePS to be over $15,000 but award is less, is the buyer required to obtain proof of compliance?

 

Proof of compliance is now required for small purchase awards of $2,500 and above and for all invitation for bids and requests for proposals.

 

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What statutes, administrative rules, procurement circulars etc. do buyers need to know to conduct a small purchase request for quote on HePS?

 

This is not an exhaustive list.

Note: All statues (HRS), administrative rules (HAR), procurement circulars, etc. regarding procurement and small purchase request for quotes still apply when utilizing HePS.

 

Act 283 SLH 2006 amended HRS section 103D-305, Small Purchase

Raised the threshold of small purchase request for quotes from less than $25,000 to less than $50,000 provided that all purchases from $25,000 to less than $50,000 are conducted through an electronic procurement system.

HAR Chapter 3-122, Subchapter 8, Small Purchases

How small purchases procurements are to be conducted.  Includes section on Parceling.

HAR Section 3-122-78 (section on electronic procurement for small purchases):

Small purchase request for quotation procurements between $25,000 and less than $50,000 shall be made through an eProcurement system effective 7/1/07.

Sole source and emergency procurements pursuant to HRS sections 103D-306 and 103D-307 are not included.

The chief procurement officer may determine any goods, services and or construction less than $25,000 to be procured through an e-procurement system. See also Procurement Circular 2006-07, Amendment 1

Procurement Circular 2009-15  ACT 175, SLH 2009: PART I, SECTION 2 Small Purchases Procurements and Performance Bonds for Construction

Temporarily increases small purchase request for quotes dollar threasholds to $100,000 for goods and services and $250,000 for construction. Requires performance bonds for construction contracts.  To be repealed 7/1/12.  Provides guidelines for small purchase requests for quotes and states that for the executive branch, all procurements  $15,000 and above shall be procured through HePS. Compliance documents shall be obtained for purchases from $15,000.

For CPO Jurisdictions see Procurement Circular 2009-14, ACT 175, SLH 2009: PART I, SECTION 2 Small Purchases Procurements and Performance Bonds for Construction

Procurement Circular 2005-04, Amendment 3 Hawaii Compliance Express  (see also 2005-04, and 2005-04 amendments 1 and 2)

HRS §103D-106, Penalties

Administrative fines were added.

HAR Chapter 3-131, Compliance was amended effective 4/14/08 to comply with the requirements of Act 142, SLH 2007.

The applicability of the chapter was amended to include government employees and offerors; a procurement code of ethics is added, the section on penalties was added to add administrative fines.

The section on parceling should also be reviewed by buyers conducting small purchase request for quotes.

Procurement Circular 2008-09 SPECIFICATIONS Pursuant to HRS Chapter 103D, Part IV, and HAR, Chapter 3-122, Subchapter 3

Reminder that specifications shall promote competition, not be unduly restrictive and shall be fair to all vendors. provides clarification.

HRS §103D-310 Responsibility of offerors

Compliance documentation that is required prior to award.

HAR 3-122-112 Responsibility of offerors

Compliance Documentation required prior to award and at end of a contract. Dates compliance documentation is valid.

Chapter 3-122, "Source Selection and Contract Formation" (eff: 3/21/08)

HRS §103-53 Contracts with the state or counties; tax clearances, assignments.

This section requires tax clearance prior to final payments. It applies to all contracts/agreements.

(Note that compliancy in Hawaii Compliance Express meets this requirement. See Procurement Circulars 2005-04, Amendment 3  and 2006-07 Amendment 1 (listed above))

HRS §103D-328 Tax clearances; setoff for due and unpaid taxes.

This section is similar to HRS §103-53 and applies to procurements pursuant to Chapter 103D and states no contract shall be in effect until the state receives state and federal tax clearances and also requires tax clearances prior to final payment.

(Note that compliancy in Hawaii Compliance Express meets this requirement. HRS §103-55 Wages, hours, and working conditions of employees of contractors performing services.

Before a vendor enters into a service contract in excess of $25,000, the provider shall certify that it complies with this section; there are some exceptions.

HRS §11-205.5, Campaign contributions by state and county contractors.

Campaign contributions are prohibited from specified State or county government contractors during the term of the contract if the contractors are paid with funds appropriated by a legislative body

HRS §103D-412 Energy-efficient vehicles.

If you are buying a vehicle, you need to be familiar with the requirements for buying energy efficient vehicles.See Energy Efficiency Guidelines for State

Energy Efficiency Guidelines for State (DBEDT Website)

Includes energy efficiency requirements when purchasing a vehicle.  Vehicle Purchase Guidelines, Energy Efficient Vehicles Listing for current and past year.

Also includes Administrative directives for energy efficiency, guidlelines for energy efficient buildings, energy performance contracting, etc.

Check with your fiscal office about current Budget Execution Policies.  There are requirements in those that may affect a solicitation.

Personal Services Contractor Procedural Manual by DAGS/ Audit and Accounting Review Committee (AARC)

Related

HRS Chapter 489E is the Uniform Electronic Transactions Act.

See DCCA Procurement Decisions (resulting from protests)

HRS Chapter 103 - Expenditure of Public Money and Public Contracts

HRS Chapter 104 - Wages & Hours of Employees on Public Works

HRS Chapter 84 - Standards of Conduct

HRS §84-15 Contracts

Requires public notice if entering into a contract with an employee or a legislator or a business in which an employee or legislator has a controlling interest.

State agencies shall not enter into contracts with persons or businesses represented or assisted by a person who has been an employee of the agency within the preceding 2 years.

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For HePS awards, what documents must accompany the PO to pre-audit?

 

The requirements vary from department to department and sometimes within a department.  Generally, the HePS Award Summary Report is required to accompany the purchase order.  Check with your Department/CPO Jurisdiction HePS Administrator for your department requirements.

 

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Who should buyers or approvers contact if the password is forgotten?

 

Buyers/approvers do not need to contact anyone to retrieve a password.  On the HePS login page under' Forgot your password?' you may enter your user ID or email and your password will be emailed to you. If you have forgotten your User ID, contact your Department/CPO Jurisdiction HePS Administrator.

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Who should buyers or approvers contact with questions?

Contact your Department/CPO Jurisdiction HePS Administrator.

 

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