In accordance with the Department of Budget
and Fiscal Services’ (BFS) policy, elements
shall follow standard procedures outlined in
this directive in making purchases. All requests
must be approved prior to purchase.

DEFINITIONS

A. C²HERPS: The City and County of Honolulu
Enterprise Resource Planning System.

B. Division-Level Element Commander: A major
or anyone of lower rank who heads an element and is
directly subordinate to an assistant chief or higher.

C. E-Form: An electronic form that reduces manual,
paper-based processes by capturing, routing, and tracking
information electronically.

D. ENERGY STAR®: A program established by
the United States Environmental Protection Agency
and the United States Department of Energy to
identify and promote energy-efficient products
that will reduce energy consumption and pollution
thus reducing greenhouse gas emissions. The program
identifies products and distributes information for
products that meet the highest energy conservation standards.

E. Initiator: The employee who initiates the e-form request.

F. Life-Cycle Analysis: A comprehensive
examination of a product’s environmental and
economic aspects and potential impacts throughout
its lifetime, including raw material extraction,
transportation, manufacturing, use, and disposal.

G. Special Request Purchase:
A purchase request for an item that requires
additional review and approval by an assistant
chief or higher (e.g., computer equipment,
uniforms and equipment, food, beverages, and lei).
GUIDELINES

A. When available, personnel shall purchase only
ENERGY STAR® products and other energy-efficient
products when procuring energy-using products.

1. Purchasing Energy-Efficient Products

a. For product groups where ENERGY STAR® labels
are not yet available, the products should be
in the upper 25 percent of energy efficiency,
as designated by the Federal Energy
Management Program, Office of Energy
Efficiency and Renewable Energy, United
States Department of Energy.

b. Products shall meet or exceed ENERGY STAR®
criteria for energy efficiency. This applies
to:

(1) Equipment that uses electricity, natural gas, or fuel oil;

(2) Products that indirectly impact energy use (e.g.,
windows, doors, or skylights);

(3) Examples of ENERGY STAR® products include the following:

(a) Air conditioners;

(b) Compact fluorescent bulbs;

(c) Computers and monitors;

(d) Copiers, printers, and scanners;

(e) Digital video disc and videocassette recorders and players; and

(f) Vending machines and water coolers.

c. Personnel shall incorporate energy-efficient
criteria into the contract language and purchase
requests (e.g., “The vendor shall provide products
that have the ENERGY STAR® rating and meet energy
specifications for energy efficiency.”).

d. Personnel shall attach a life-cycle analysis
or a detailed explanation to the purchase request,
confirming purchase order, or equipment report when
purchasing products that are not energy-efficient
or ENERGY STAR® rated.

2. References

a. BFS’ Policies and Procedures Manual, City and
County of Honolulu.

b. City Council Resolution No. 99-225, C.D.1.

B. To make a purchase, the initiator shall
prepare a Purchase Request e-form that can be
accessed from the city’s intranet electronic
forms Web site (http://eforms2/). Before
initiating an e-form request, the employee
shall determine if the item is available for
purchase on a city contract master agreement/price list.
Master agreement/price list items can be accessed
for review utilizing the Universal Requestor on
the C²HERPS Financial Production System reference
Web site (http://c2herps/erp/).

Complete the e-form by entering the required
information in the appropriate blocks.

1. Describe the purchase. List the type
and quantity, price schedule and/or item number,
unit cost and total cost for each item, and total
cost for the request. Also, justify why you need the purchase.

2. Obtain price quotes from three vendors
for purchase requests in excess of $250. List
the vendor, person contacted, telephone number,
and total cost of the quote (refer to section IV
below for vendor requirements). If a purchase
request is $2,500 or more, there must be three
written quotes (facsimile is acceptable) displaying
the trademarks/logos/letterheads of the companies
that provided the quotes. The written quotes shall
be submitted as an electronic attachment to the e-form request.

Requests not on a master agreement/price schedule
of $5,000 or more or $3,000 or more when using
grant funds require forms BFS-10 and BFS-10A.

Contact the Finance Division if the purchase
involves foreign vendors as additional taxes and requirements may apply.

Exceptions:

a. Master agreement/price schedule items.

b. For any item(s) where there is only one
vendor, a Notice and Request for Sole Source,
BFS-01 form, must be completed with the appropriate
justification. Upon approval of the BFS-01 form,
an e-form shall be forwarded to the Finance Division.
A copy of the approved BFS-01 form shall also be
submitted as an electronic attachment to the e-form.

c. For requests of $5,000 or more that are
covered by Title 2, Procurement Exemption, Hawaii
Administrative Rules, a Notice of and Request
for Exemption from Chapter 103D, HRS, BFS-07 form,
must be completed with the appropriate justification.

d. The Chief of Police or designee may
authorize the commander of the Finance Division
to procure goods and services under $5,000 without competitive bidding.

3. Provide the element name and address for delivery.

4. Justify the purchase request and provide
relevant information for consideration.

5. Forward the e-form request to the element
commander who shall review and approve/disapprove
the request. Upon approval, the element commander
shall forward the request to the appropriate
e-mail recipient (select from the HPD Fiscal Mailbox menu).
Personnel in temporary assignments with the authority
to approve requests shall indicate their status in the
“Comments” section of the e-form.

6. Purchase requests of $2,500 or more require
proof of vendor compliance as described in section IV below.

C. If all reviewers concur with the request,
the Finance Division shall determine the completeness
of the request and the availability of funds and
make the decision on the request accordingly.

D. Approval of Purchase

1. Approval shall be indicated on the e-form
by the commander of the Finance Division or designee.

2. Changes, such as suggested vendor, shall
be noted by the Finance Division.

3. The approved e-form shall designate the method
of purchase of the item or service. For example:

a. Petty cash;

b. Purchase authorization number. Unless
noted otherwise, the initiator shall conduct the
transaction to purchase the item(s). A C²HERPS
Small Purchase Order (SP) document may need to
be initiated (refer to section E below);

c. Voucher;

d. Requisition. When a purchase request
is for an amount of $5,000 or more or $3,000
or more when using grant funds, and not on a
master agreement/price schedule, the item or
service will be ordered by the Division of
Purchasing, BFS. A C²HERPS Standard Requisition
(RQS) document is required to be initiated; or

e. City corporate credit card, purchasing
card, or pCard. The pCard authorization number
shall be notated and referenced on the vendor’s invoice.

E. Approved E-Forms With a Purchase Authorization Number

1. Purchase requests with an authorization
number starting with the letter “B” require a
C²HERPS entry before placing an order with the vendor.

a. The “B” number, element, contact name, and contact number should be entered in the “Document Name” box.

b. A copy of the approved e-form with a purchase
authorization number shall be scanned and
attached to the appropriate C²HERPS document.

2. The C²HERPS document number (e.g., Delivery
Order [DO], SP, RQS, etc.) shall be:

a. Written on all invoices and packing slips related to the purchase request; and

b. Used when dealing with vendors.

F. Disapproval of Purchase

1. Disapproval shall be indicated on
the e-form by the commander of the Finance Division or designee.

2. An explanation for the disapproval shall
be given in the “Comments” section of the e-form.

G. Special Request Purchase

1. The division-level element commander
shall forward the e-form request to his or her
superior for additional review.

2. The assistant chief or higher who reviews
the request shall approve or disapprove the e-form.
Approved requests shall be forwarded to the Finance Division.

3. Requests for food, beverages, and flower lei require
the approval of the department head.

4. The Finance Division shall determine the
completeness of the request and the availability
of funds and approve or disapprove the request
based on these and other relevant considerations.

H. Emergency purchases may be made upon verbal
approval by the commander of the Finance Division
or designee, but the e-form must be prepared.
Receipt of verbal approval, the date, from whom,
and the purchase authorization number shall be
entered in the section of the e-form labeled
“Reason why three (3) quotes not obtained.”
A C²HERPS entry may be required.

For emergency purchases of $5,000 or more,
an Emergency Procurement Request, BFS-02 form,
must be completed with the appropriate justification.
Upon approval of the BFS-02 form, an e-form shall
be forwarded to the Finance Division. A copy of
the approved BFS-02 form shall also be submitted
as an electronic attachment to the e-form.
VENDOR TAXPAYER IDENTIFICATION NUMBER

The suggested vendor shall have a valid
Taxpayer Identification Number (TIN) and
an Internal Revenue Service Request For
Taxpayer Identification Number and Certification
(W-9) form on file with the city.

A. If an item was previously purchased
from the suggested vendor, the vendor’s TIN
should already be on file with the city.

If the initiator of the purchase request is
unsure if the vendor’s information is on file,
the initiator shall contact the element’s
respective senior account clerk in the Finance
Division for assistance.

B. If the vendor’s TIN is not on file
with the city, the initiator of the purchase
request shall obtain the TIN by having the
vendor complete a W-9 form.

1. The completed W-9 form shall be submitted as an
attachment to the Purchase Request e-form.

2. If the vendor is unable to provide a W-9 form,
another vendor who is capable of providing a
W-9 form shall be selected.
VENDOR COMPLIANCE REQUIREMENTS

A. Prior to the execution of a Purchase Order
and/or contract for purchases of $2,500 or more,
vendors are responsible for providing proof of
compliance to applicable laws. A compliant status
for vendors is required in the following categories:

1. Hawaii Department of Taxation;

2. Internal Revenue Service;

3. Hawaii Department of Commerce and Consumer Affairs; and

4. Hawaii Department of Labor and Industrial Relations.

B. The initiator shall attach a copy of the compliance
certificate dated no more than 60 days prior as an electronic
attachment to the purchase request. The awarded vendor must
be in compliant status at the time of purchase or execution of contract.
PROBLEM AREAS

Any problems encountered should be brought to
the attention of the commander of the Finance Division.