Fair and reasonable pricing policy; cost or pricing data
HRS §103D-312
in effect103D-312. Fair and reasonable pricing policy; cost or pricing data
(a) A procurement officer shall purchase goods, services, and construction from responsible sources at fair and reasonable prices. A procurement officer shall make a written determination whether a price is fair and reasonable for each contracting action, including change orders and contract modifications that adjust prices. In establishing whether a price is fair and reasonable, the procurement officer shall obtain:
(1) Certified cost or pricing data for every contract
to which subsection (c) applies; and
(2) Other data as necessary to perform a cost or
price analysis of the data and determine a fair and reasonable price,
regardless of whether subsection (c) applies to the contract.
(b) The policy board may adopt rules,
pursuant to chapter 91, to establish an order of preference in the type of data
required under subsection (a)(2).
(c) A contractor, except as provided in
subsection (e), shall submit cost or pricing data and shall certify that, to
the best of the contractor's knowledge and belief, the cost or pricing data
submitted is accurate, complete, and current as of a mutually determined
specified date before the date of:
(1) The pricing of any contract awarded by competitive
sealed proposals or pursuant to the sole source procurement authority, where
the total contract amount is expected to exceed an amount established by rules
adopted by the policy board; or
(2) The pricing of any change order or contract
modification that is expected to exceed an amount established by rules adopted
by the policy board. The requirement of this paragraph shall apply
regardless of whether the original contract award did not require certified
cost and pricing data.
(d) Any contract, change order, or contract
modification under which a certificate is required shall contain a provision
that the price to the State, including profit or fee, shall be adjusted to
exclude any significant sums by which the State finds that the price was increased
because the contractor furnished cost or pricing data that was inaccurate,
incomplete, or not current as of the date agreed upon between the parties.
(e) The requirements of this section, except for
the requirements of [subsection] (c)(2), shall not apply to original contract
awards:
(1) Where the original contract price is based on
adequate price competition;
(2) Where the original contract price is based on
established catalog prices or market prices;
(3) Where the original contract prices are set by law
or rule; or
(4) Where it is determined in writing in accordance
with rules adopted by the policy board that the requirements of this section
may be waived, and the reasons for the waiver are stated in writing; provided
that the requirements for price and costing data required under subsection
(a)(2) shall not be waived without the approval of the chief procurement
officer; provided further that the chief procurement officer shall not delegate
this authority. [L Sp 1993, c 8, pt of §2; am L 1997, c 352, §23; am L 2016, c
253, §4]
Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: http://www.capitol.hawaii.gov/hrscurrent/Vol02_Ch0046-0115/HRS0103D/HRS_0103D-0312.htmFetched: 11/10/2026