State Procurement Office ~ Procurement of Health and Human Services Home
State
Procurement Office
Procurement
of Health and Human Services ~ Chapter
103F, HRS
About Secondary Purchases of Health and Human Services
Pursuant to Section 3-143-608, Hawaii Administrative Rules
Secondary Purchases-The Basics
There are 2 kinds of Secondary Purchases:
After-the-fact secondary purchase. A purchasing agency may utilize the service or part of the service that has already been procured under a competitive purchase of service by another purchasing agency; and
What are the Primary and Secondary Purchasers?
Primary Purchaser:
The purchasing agency requiring the
largest share of the services detailed in the request for proposals.
Secondary Purchaser:
The purchasing agency requiring the
smaller share.
Note: When an after-the- fact secondary purchase is being conducted, a
secondary purchaser's share of the total services purchased may not exceed 30%,
unless the head of the secondary purchaser determines in writing that good cause
exists for a greater share.
The Responsibilities of the Primary & Secondary Purchasers
The primary purchaser has the responsibility of complying with the procedures and requirements of a competitive purchase of services.
The secondary purchaser has the responsibility of cooperating with the reasonable requests of the primary purchaser.
The primary and secondary purchasers execute separate contracts.
Comparing Planned and After-the-Fact Secondary Purchases
| Planned Secondary Purchase | After-the-Fact Secondary Purchase |
| When two or more purchasing agencies require the procurement of substantially the same health and human services, they may combine their requirements and issue a single request for proposals. | A purchasing agency may utilize a service or part of a service that has already been conducted under a competitive purchase of service by another purchasing agency. |
| The secondary purchaser purchases less of the service than the primary purchaser. | A secondary purchaser's share of the total services purchased may not exceed 30% |
| More leeway in the differences between primary and secondary purchases as providers are informed at the time of the RFP as to any differences. | Less leeway in the differences between primary and secondary purchases as the providers have no knowledge of the secondary purchase at the time of the RFP other than there may be one. |
| Use this method when the secondary purchaser knows prior to the release of the RFP that the service may be needed. | Use this method when the secondary purchaser had no knowledge at the time of the solicitation (by the primary purchaser) that the service may be needed. |
Questions? Contact:
Mara Smith at 808.587.4704 or mara.smith@hawaii.gov
or
Corinne Higa at 808.587.4706 or corinne.y.higa@hawaii.gov.
State Procurement Office ~ Procurement of Health & Human Services Home
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