10.0272 Local bidder preference and evaluation.

Cite as [A.S.A.C. § 10.0272]

(a) Construction procurements.

(1) For construction procurements where the contract value is estimated by the government at $50,000 or less, the procurement shall be set aside and restricted to local bidders only. Bids received from off-island bidders will be rejected.

(2) For all construction procurements where the contract value is estimated by the government to exceed $50,000, bids from off-island bidders shall be evaluated after bid opening so as to give preference to responsive, responsible and reasonable, and reasonable local bidders by application of the following schedule of add-on percentages to the bid amount submitted by the lowest responsive, responsible, and reasonable offisland bidder:

Estimated valueAdd-on Percentage

$50,001 to$100,00010%

$100,001 to $200,000$10,000 plus 5% of the amount in excess of $100,000

More that $200,000$15,000

(b) Procurement of goods and services.

(1) For all procurements of goods or services (other than construction) for which qualifying bids are received from both local bidders and off-island bidders,

the bids shall be evaluated after bid opening so as to give preference to responsive, responsible and reasonable local bidders by application of the following schedule of add-on percentages to the bid amount submitted by the lowest responsive, responsible and reasonable off-island bidder:

Estimated ValueAdd-on Percentage

Up to $10,000 - 25%

$10,001 to $50,000 - $2,500 plus 12% of the amount in excess of $10,000

$50,000 to $100,000 - $7,300 plus 10% of the amount in excess of $50,000

$100,001 to $200,000 - $12,300 plus 5% of the amount in excess of $100,000

More than $200,000 - $17,300

(c) If, after the addition of the applicable add-on percentage amount according to subsection (a) or (b) above, the bid submitted by the lowest responsive, responsible, and reasonable local bidder is equal to or less than the evaluated bid (amount of bid plus add-on percentage of the bid) of the lowest responsive, responsible, and reasonable off-island bidder, then the local bidder shall be awarded the contract.

(d) Procurement requirements may not be artificially divided or combined so as to circumvent the provisions of this section.

(e) The Governor may suspend or reduce a local preference set forth in this section if he finds that such action is desirable or necessary in the public interest as a result of financial or economic conditions affecting directly or indirectly the government generally, for a period or periods not exceeding 18 months in total.The preferences suspended or reduced must be fully restored after 18 months unless permanent modifications are proposed to the legislature. Suspension or reduction shall be adopted under the Administrative Procedure Act, 4.1001 ASCA et seq.

History: Rule 5-84, eff 11 Jul 84, (part).