UH regents approve online bid process

Associated Press

Revised procurement procedures for purchasing goods, services and construction have been authorized by the University of Hawai'i Board of Regents.

In the past, most university purchases of $25,000 or more had to be formally advertised as an invitation for bids or request for proposals.

Under the revised process, most purchases from $2,500 to $100,000 would be made through the SuperQUOTE online request for quotation system.

"The BOR's approval of simplifying and automating UH's procedures will lead to much greater efficiency, a streamlined purchasing process and a significant cost savings to the university," said Russ Miyake, the university's director of financial management and controller.

Use of an online marketplace is expected to promote openness and greater competition among vendors, university officials said.

(However, use of SuperQUOTE has been criticized by some UH suppliers because the Internet-based system makes it easier for Mainland companies to compete for work. Out-of-state businesses often don't employ local workers and aren't subject to Hawai'i's 4 percent general excise tax, the local companies point out.

SuperQUOTE was developed by New York-based CommercePoint Inc., which was founded in Hawai'i.)

Written requests for quotations will continue to be used for certain purchases, such as construction and other goods and services where the use of electronic quotation isn't feasible.

Advertiser staff writer Sean Hao contributed the information in parentheses to this report.