SB462

Hawaii SB462 amends procurement contract rules to include performance incentives and restrict certain contract types.

Hawaii SB462 modifies procurement contract regulations by allowing performance incentive contracts that adjust contractor profits based on meeting or exceeding performance goals. It also mandates that any remaining funds in the contract budget be divided between the contractor and the State if the contractor meets all performance goals. The bill restricts the use of cost-reimbursement and cost-plus-a-percentage-of-cost contracts, prohibiting their use if it would jeopardize federal assistance funds. It also requires public notice and policy board rules for compliance audits.