Bill > SB462

This bill amends Hawaii's procurement contract regulations by adding new requirements for performance incentive contracts. Specifically, the bill mandates that all performance incentive contracts must clearly outline three key elements: a pricing basis, specific performance goals, and a detailed formula for calculating how the contractor's profit, fee, or price will change depending on whether they exceed or fail to meet the predetermined performance goals. The bill also maintains existing provisions about cost-reimbursement and cost-plus-a-percentage-of-cost contracts, which can only be used when the chief procurement officer determines they are less costly or necessary to obtain required goods, services, or construction. Additionally, for cost-plus-a-percentage-of-cost contracts, the bill requires public notice to various government officials and conspicuous posting in the chief procurement officer's office. The legislation will take effect on January 1, 2525, which appears to be a placeholder date typically used when the exact implementation date is not yet determined.

Budget and Finance, Government Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=462&year=2026