Procurement Cases

The Office of Administrative Hearings conducts administrative reviews of procurement disputes arising under the Hawai`i Public Procurement Code (Hawai`i Revised Statutes chapter 103D) between the procuring agency and contractors and/or vendors doing business with the agency. These disputes generally involve the preparation and interpretation of bid specifications, the qualification and selection of successful bidders or offerors, or matters concerning the solicitation process.

Procurement cases brought before the Office of Administrative Hearings generally involve disputes regarding:

the preparation and interpretation of bid specifications;
the qualification and selection of successful bidders or offerors; and
matters relating to the solicitation process.

Unlike other types of contested case hearings conducted by the Office of Administrative Hearings, procurement hearings have accelerated processing and disposition requirements and follow procedural rules promulgated by the State Procurement Office.

Procurement hearings are governed by the HRS Chapter 103D and HAR Title 3, Chapter 126.

Payment by check shall be made payable to “Department of Commerce and Consumer Affairs”.

Cash or Protest Bonds

HRS § 103D-709(e) governs the bond requirements for procurement matters and provides:

(e) The party initiating a proceeding falling within subsection

(d) shall pay to the department of commerce and consumer affairs a cash or protest bond in the amount of one per cent of the estimated value of the contract.

The cash or protest bond shall be returned to that party, minus administrative costs as determined by the office of administrative hearings of the department of commerce and consumer affairs; provided that full forfeiture of the cash or protest bond shall occur if the initiating party does not prevail in the administrative proceeding and the office of administrative hearings finds that the appeal was frivolous or made in bad faith, in which case the cash or protest bond shall be deposited into the general fund.

You can download the protest cash bond and protest bond surety forms that have been used by the State Procurement Office.

Filing Fees

HRS § 103D-709(f) governs applicable filing fees for procurement matters and provides:

(f) In addition to the bond required in subsection

(e), the initiating party shall pay to the department of commerce and consumer affairs a non-refundable filing fee of:

(1) $200 for a contract with an estimated value of $500,000 or more, but less than $1,000,000; or

(2) $1,000 for a contract with an estimated value of $1,000,000 or more.

Failure to pay the filing fee shall result in the rejection or dismissal of the request for review. The fee shall be deposited into the compliance resolution fund established pursuant to section 26-9(o) and used to help defray the costs of conducting the administrative proceeding for review.

If you are required to pay a cash or protest bond and/or a nonrefundable filing fee, include this payment with your request for administrative hearing. The bond and/or filing fee is payable by check or money order, made payable to the Department of Commerce and Consumer Affairs. If you are filing your request for administrative hearing electronically, include a copy of your payment with your filing and mail your payment to OAH within two business days of your filing date.

The information on this website is not intended to provide legal advice. If you need assistance with filing a procurement case, you are advised to consult an attorney.