Citric Acid for DAB-PQB January to June 2027

GENERAL CONDITIONS
1. Coordination of Services by the STATE. The head of the purchasing agency ("HOPA") (which term
includes the designee of the HOPA) shall coordinate the services to be provided by the CONTRACTOR in
order to complete the performance required in the Contract. The CONTRACTOR shall maintain
communications with HOPA at all stages of the CONTRACTOR'S work, and submit to HOPA for resolution
any questions which may arise as to the performance of this Contract. "Purchasing agency" as used in these
General Conditions means and includes any governmental body which is authorized under chapter 103D,
HRS, or its implementing rules and procedures, or by way of delegation, to enter into contracts for the
procurement of goods or services or both.
2. Relationship of Parties: Independent Contractor Status and Responsibilities, Including Tax Responsibilities.
a. In the performance of services required under this Contract, the CONTRACTOR is an "independent
contractor," with the authority and responsibility to control and direct the performance and details of
the work and services required under this Contract; however, the STATE shall have a general right to
inspect work in progress to determine whether, in the STATE'S opinion, the services are being
performed by the CONTRACTOR in compliance with this Contract. Unless otherwise provided by
special condition, it is understood that the STATE does not agree to use the CONTRACTOR
exclusively, and that the CONTRACTOR is free to contract to provide services to other individuals
or entities while under contract with the STATE.
b. The CONTRACTOR and the CONTRACTOR'S employees and agents are not by reason of this
Contract, agents or employees of the State for any purpose, and the CONTRACTOR and the
CONTRACTOR'S employees and agents shall not be entitled to claim or receive from the State any
vacation, sick leave, retirement, workers' compensation, unemployment insurance, or other benefits
provided to state employees.
c. The CONTRACTOR shall be responsible for the accuracy, completeness, and adequacy of the
CONTRACTOR'S performance under this Contract. Furthermore, the CONTRACTOR intentionally,
voluntarily, and knowingly assumes the sole and entire liability to the CONTRACTOR'S employees
and agents, and to any individual not a party to this Contract, for all loss, damage, or injury caused by
the CONTRACTOR, or the CONTRACTOR'S employees or agents in the course of their
employment.
d. The CONTRACTOR shall be responsible for payment of all applicable federal, state, and county
taxes and fees which may become due and owing by the CONTRACTOR by reason of this Contract,
including but not limited to (i) income taxes, (ii) employment related fees, assessments, and taxes,
and (iii) general excise taxes. The CONTRACTOR also is responsible for obtaining all licenses,
permits, and certificates that may be required in order to perform this Contract.
e. The CONTRACTOR shall obtain a general excise tax license from the Department of Taxation, State
of Hawaii, in accordance with section 237-9, HRS, and shall comply with all requirements thereof.
The CONTRACTOR shall obtain a tax clearance certificate from the Director of Taxation, State of
Hawaii, and the Internal Revenue Service, U.S. Department of the Treasury, showing that all
delinquent taxes, if any, levied or accrued under state law and the Internal Revenue Code of 1986, as
amended, against the CONTRACTOR have been paid and submit the same to the STATE prior to
commencing any performance under this Contract. The CONTRACTOR shall also be solely
responsible for meeting all requirements necessary to obtain the tax clearance certificate required for
final payment under sections 103-53 and 103D-328, HRS, and paragraph 17 of these General
Conditions.
f. The CONTRACTOR is responsible for securing all employee-related insurance coverage for the
CONTRACTOR and the CONTRACTOR'S employees and agents that is or may be required by law,
and for payment of all premiums, costs, and other liabilities associated with securing the insurance
coverage.
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g. The CONTRACTOR shall obtain a certificate of compliance issued by the Department of Labor and
Industrial Relations, State of Hawaii, in accordance with section103D-310, HRS, and section 3-122-
112, HAR, that is current within six months of the date of issuance.
h. The CONTRACTOR shall obtain a certificate of good standing issued by the Department of
Commerce and Consumer Affairs, State of Hawaii, in accordance with section 103D-310, HRS, and
section 3-122-112, HAR, that is current within six months of the date of issuance.
i. In lieu of the above certificates from the Department of Taxation, Labor and Industrial Relations, and
Commerce and Consumer Affairs, the CONTRACTOR may submit proof of compliance through the
State Procurement Office's designated certification process.
3. Personnel Requirements.
a. The CONTRACTOR shall secure, at the CONTRACTOR'S own expense, all personnel required to
perform this Contract.
b. The CONTRACTOR shall ensure that the CONTRACTOR'S employees or agents are experienced
and fully qualified to engage in the activities and perform the services required under this Contract,
and that all applicable licensing and operating requirements imposed or required under federal, state,
or county law, and all applicable accreditation and other standards of quality generally accepted in
the field of the activities of such employees and agents are complied with and satisfied.
4. Nondiscrimination. No person performing work under this Contract, including any subcontractor, employee,
or agent of the CONTRACTOR, shall engage in any discrimination that is prohibited by any applicable
federal, state, or county law.
5. Conflicts of Interest. The CONTRACTOR represents that neither the CONTRACTOR, nor any employee or
agent of the CONTRACTOR, presently has any interest, and promises that no such interest, direct or indirect,
shall be acquired, that would or might conflict in any manner or degree with the CONTRACTOR'S
performance under this Contract.
6. Subcontracts and Assignments. The CONTRACTOR shall not assign or subcontract any of the
CONTRACTOR'S duties, obligations, or interests under this Contract and no such assignment or subcontract
shall be effective unless (i) the CONTRACTOR obtains the prior written consent of the STATE, and (ii) the
CONTRACTOR'S assignee or subcontractor submits to the STATE a tax clearance certificate from the
Director of Taxation, State of Hawaii, and the Internal Revenue Service, U.S. Department of Treasury,
showing that all delinquent taxes, if any, levied or accrued under state law and the Internal Revenue Code of
1986, as amended, against the CONTRACTOR'S assignee or subcontractor have been paid. Additionally, no
assignment by the CONTRACTOR of the CONTRACTOR'S right to compensation under this Contract shall
be effective unless and until the assignment is approved by the Comptroller of the State of Hawaii, as
provided in section 40-58, HRS.
a. Recognition of a successor in interest. When in the best interest of the State, a successor in interest
may be recognized in an assignment contract in which the STATE, the CONTRACTOR and the
assignee or transferee (hereinafter referred to as the "Assignee") agree that:
(1) The Assignee assumes all of the CONTRACTOR'S obligations;
(2) The CONTRACTOR remains liable for all obligations under this Contract but waives all
rights under this Contract as against the STATE; and
(3) The CONTRACTOR shall continue to furnish, and the Assignee shall also furnish, all
required bonds.
b. Change of name. When the CONTRACTOR asks to change the name in which it holds this Contract
with the STATE, the procurement officer of the purchasing agency (hereinafter referred to as the
"Agency procurement officer") shall, upon receipt of a document acceptable or satisfactory to the
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Agency procurement officer indicating such change of name (for example, an amendment to the
CONTRACTOR'S articles of incorporation), enter into an amendment to this Contract with the
CONTRACTOR to effect such a change of name. The amendment to this Contract changing the
CONTRACTOR'S name shall specifically indicate that no other terms and conditions of this Contract
are thereby changed.
c. Reports. All assignment contracts and amendments to this Contract effecting changes of the
CONTRACTOR'S name or novations hereunder shall be reported to the chief procurement officer
(CPO) as defined in section 103D-203(a), HRS, within thirty days of the date that the assignment
contract or amendment becomes effective.
d. Actions affecting more than one purchasing agency. Notwithstanding the provisions of
subparagraphs 6a through 6c herein, when the CONTRACTOR holds contracts with more than one
purchasing agency of the State, the assignment contracts and the novation and change of name
amendments herein authorized shall be processed only through the CPO's office.
7. Indemnification and Defense. The CONTRACTOR shall defend, indemnify, and hold harmless the State of
Hawaii, the contracting agency, and their officers, employees, and agents from and against all liability, loss,
damage, cost, and expense, including all attorneys' fees, and all claims, suits, and demands therefore, arising
out of or resulting from the acts or omissions of the CONTRACTOR or the CONTRACTOR'S employees,
officers, agents, or subcontractors under this Contract. The provisions of this paragraph shall remain in full
force and effect notwithstanding the expiration or early termination of this Contract.
8. Cost of Litigation. In case the STATE shall, without any fault on its part, be made a party to any litigation
commenced by or against the CONTRACTOR in connection with this Contract, the CONTRACTOR shall
pay all costs and expenses incurred by or imposed on the STATE, including attorneys' fees.
9. Liquidated Damages. When the CONTRACTOR is given notice of delay or nonperformance as specified in
paragraph 13 (Termination for Default) and fails to cure in the time specified, it is agreed the CONTRACTOR
shall pay to the STATE the amount, if any, set forth in this Contract per calendar day from the date set for
cure until either (i) the STATE reasonably obtains similar goods or services, or both, if the CONTRACTOR is
terminated for default, or (ii) until the CONTRACTOR provides the goods or services, or both, if the
CONTRACTOR is not terminated for default. To the extent that the CONTRACTOR'S delay or
nonperformance is excused under paragraph 13d (Excuse for Nonperformance or Delay Performance),
liquidated damages shall not be assessable against the CONTRACTOR. The CONTRACTOR remains liable
for damages caused other than by delay.
10. STATE'S Right of Offset. The STATE may offset against any monies or other obligations the STATE owes
to the CONTRACTOR under this Contract, any amounts owed to the State of Hawaii by the CONTRACTOR
under this Contract or any other contracts, or pursuant to any law or other obligation owed to the State of
Hawaii by the CONTRACTOR, including, without limitation, the payment of any taxes or levies of any kind
or nature. The STATE will notify the CONTRACTOR in writing of any offset and the nature of such offset.
For purposes of this paragraph, amounts owed to the State of Hawaii shall not include debts or obligations
which have been liquidated, agreed to by the CONTRACTOR, and are covered by an installment payment or
other settlement plan approved by the State of Hawaii, provided, however, that the CONTRACTOR shall be
entitled to such exclusion only to the extent that the CONTRACTOR is current with, and not delinquent on,
any payments or obligations owed to the State of Hawaii under such payment or other settlement plan.
11. Disputes. Disputes shall be resolved in accordance with section 103D-703, HRS, and chapter 3-126, Hawaii
Administrative Rules ("HAR"), as the same may be amended from time to time.
12. Suspension of Contract. The STATE reserves the right at any time and for any reason to suspend this
Contract for any reasonable period, upon written notice to the CONTRACTOR in accordance with the
provisions herein.
a. Order to stop performance. The Agency procurement officer may, by written order to the
CONTRACTOR, at any time, and without notice to any surety, require the CONTRACTOR to stop
all or any part of the performance called for by this Contract. This order shall be for a specified
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period not exceeding sixty (60) days after the order is delivered to the CONTRACTOR, unless the
parties agree to any further period. Any such order shall be identified specifically as a stop
performance order issued pursuant to this section. Stop performance orders shall include, as
appropriate: (1) A clear description of the work to be suspended; (2) Instructions as to the issuance of
further orders by the CONTRACTOR for material or services; (3) Guidance as to action to be taken
on subcontracts; and (4) Other instructions and suggestions to the CONTRACTOR for minimizing
costs. Upon receipt of such an order, the CONTRACTOR shall forthwith comply with its terms and
suspend all performance under this Contract at the time stated, provided, however, the
CONTRACTOR shall take all reasonable steps to minimize the occurrence of costs allocable to the
performance covered by the order during the period of performance stoppage. Before the stop
performance order expires, or within any further period to which the parties shall have agreed, the
Agency procurement officer shall either:
(1) Cancel the stop performance order; or
(2) Terminate the performance covered by such order as provided in the termination for default
provision or the termination for convenience provision of this Contract.
b. Cancellation or expiration of the order. If a stop performance order issued under this section is
cancelled at any time during the period specified in the order, or if the period of the order or any
extension thereof expires, the CONTRACTOR shall have the right to resume performance. An
appropriate adjustment shall be made in the delivery schedule or contract price, or both, and the
Contract shall be modified in writing accordingly, if:
(1) The stop performance order results in an increase in the time required for, or in the
CONTRACTOR'S cost properly allocable to, the performance of any part of this Contract;
and
(2) The CONTRACTOR asserts a claim for such an adjustment within thirty (30) days after the
end of the period of performance stoppage; provided that, if the Agency procurement officer
decides that the facts justify such action, any such claim asserted may be received and acted
upon at any time prior to final payment under this Contract.
c. Termination of stopped performance. If a stop performance order is not cancelled and the
performance covered by such order is terminated for default or convenience, the reasonable costs
resulting from the stop performance order shall be allowable by adjustment or otherwise.
d. Adjustment of price. Any adjustment in contract price made pursuant to this paragraph shall be
determined in accordance with the price adjustment provision of this Contract.
13. Termination for Default.
a. Default. If the CONTRACTOR refuses or fails to perform any of the provisions of this Contract with
such diligence as will ensure its completion within the time specified in this Contract, or any
extension thereof, otherwise fails to timely satisfy the Contract provisions, or commits any other
substantial breach of this Contract, the Agency procurement officer may notify the CONTRACTOR
in writing of the delay or non-performance and if not cured in ten (10) days or any longer time
specified in writing by the Agency procurement officer, such officer may terminate the
CONTRACTOR'S right to proceed with the Contract or such part of the Contract as to which there
has been delay or a failure to properly perform. In the event of termination in whole or in part, the
Agency procurement officer may procure similar goods or services in a manner and upon the terms
deemed appropriate by the Agency procurement officer. The CONTRACTOR shall continue
performance of the Contract to the extent it is not terminated and shall be liable for excess costs
incurred in procuring similar goods or services.
b. CONTRACTOR'S duties. Notwithstanding termination of the Contract and subject to any directions
from the Agency procurement officer, the CONTRACTOR shall take timely, reasonable, and
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necessary action to protect and preserve property in the possession of the CONTRACTOR in which
the STATE has an interest.
c. Compensation. Payment for completed goods and services delivered and accepted by the STATE
shall be at the price set forth in the Contract. Payment for the protection and preservation of property
shall be in an amount agreed upon by the CONTRACTOR and the Agency procurement officer. If
the parties fail to agree, the Agency procurement officer shall set an amount subject to the
CONTRACTOR'S rights under chapter 3-126, HAR. The STATE may withhold from amounts due
the CONTRACTOR such sums as the Agency procurement officer deems to be necessary to protect
the STATE against loss because of outstanding liens or claims and to reimburse the STATE for the
excess costs expected to be incurred by the STATE in procuring similar goods and services.
d. Excuse for nonperformance or delayed performance. The CONTRACTOR shall not be in default by
reason of any failure in performance of this Contract in accordance with its terms, including any
failure by the CONTRACTOR to make progress in the prosecution of the performance hereunder
which endangers such performance, if the CONTRACTOR has notified the Agency procurement
officer within fifteen (15) days after the cause of the delay and the failure arises out of causes such as:
acts of God; acts of a public enemy; acts of the State and any other governmental body in its
sovereign or contractual capacity; fires; floods; epidemics; quarantine restrictions; strikes or other
labor disputes; freight embargoes; or unusually severe weather. If the failure to perform is caused by
the failure of a subcontractor to perform or to make progress, and if such failure arises out of causes
similar to those set forth above, the CONTRACTOR shall not be deemed to be in default, unless the
goods and services to be furnished by the subcontractor were reasonably obtainable from other
sources in sufficient time to permit the CONTRACTOR to meet the requirements of the Contract.
Upon request of the CONTRACTOR, the Agency procurement officer shall ascertain the facts and
extent of such failure, and, if such officer determines that any failure to perform was occasioned by
any one or more of the excusable causes, and that, but for the excusable cause, the CONTRACTOR'S
progress and performance would have met the terms of the Contract, the delivery schedule shall be
revised accordingly, subject to the rights of the STATE under this Contract. As used in this
paragraph, the term "subcontractor" means subcontractor at any tier.
e. Erroneous termination for default. If, after notice of termination of the CONTRACTOR'S right to
proceed under this paragraph, it is determined for any reason that the CONTRACTOR was not in
default under this paragraph, or that the delay was excusable under the provisions of subparagraph
13d, "Excuse for nonperformance or delayed performance," the rights and obligations of the parties
shall be the same as if the notice of termination had been issued pursuant to paragraph 14.
f. Additional rights and remedies. The rights and remedies provided in this paragraph are in addition to
any other rights and remedies provided by law or under this Contract.
14. Termination for Convenience.
a. Termination. The Agency procurement officer may, when the interests of the STATE so require,
terminate this Contract in whole or in part, for the convenience of the STATE. The Agency
procurement officer shall give written notice of the termination to the CONTRACTOR specifying the
part of the Contract terminated and when termination becomes effective.
b. CONTRACTOR'S obligations. The CONTRACTOR shall incur no further obligations in connection
with the terminated performance and on the date(s) set in the notice of termination the
CONTRACTOR will stop performance to the extent specified. The CONTRACTOR shall also
terminate outstanding orders and subcontracts as they relate to the terminated performance. The
CONTRACTOR shall settle the liabilities and claims arising out of the termination of subcontracts
and orders connected with the terminated performance subject to the STATE'S approval. The
Agency procurement officer may direct the CONTRACTOR to assign the CONTRACTOR'S right,
title, and interest under terminated orders or subcontracts to the STATE. The CONTRACTOR must
still complete the performance not terminated by the notice of termination and may incur obligations
as necessary to do so.
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c. Right to goods and work product. The Agency procurement officer may require the CONTRACTOR
to transfer title and deliver to the STATE in the manner and to the extent directed by the Agency
procurement officer:
(1) Any completed goods or work product; and
(2) The partially completed goods and materials, parts, tools, dies, jigs, fixtures, plans, drawings,
information, and contract rights (hereinafter called "manufacturing material") as the
CONTRACTOR has specifically produced or specially acquired for the performance of the
terminated part of this Contract.
The CONTRACTOR shall, upon direction of the Agency procurement officer, protect and preserve
property in the possession of the CONTRACTOR in which the STATE has an interest. If the Agency
procurement officer does not exercise this right, the CONTRACTOR shall use best efforts to sell
such goods and manufacturing materials. Use of this paragraph in no way implies that the STATE
has breached the Contract by exercise of the termination for convenience provision.
d. Compensation.
(1) The CONTRACTOR shall submit a termination claim specifying the amounts due because of
the termination for convenience together with the cost or pricing data, submitted to the extent
required by chapter 3-122, HAR, bearing on such claim. If the CONTRACTOR fails to file
a termination claim within one year from the effective date of termination, the Agency
procurement officer may pay the CONTRACTOR, if at all, an amount set in accordance with
subparagraph 14d(3) below.
(2) The Agency procurement officer and the CONTRACTOR may agree to a settlement
provided the CONTRACTOR has filed a termination claim supported by cost or pricing data
submitted as required and that the settlement does not exceed the total Contract price plus
settlement costs reduced by payments previously made by the STATE, the proceeds of any
sales of goods and manufacturing materials under subparagraph 14c, and the Contract price
of the performance not terminated.
(3) Absent complete agreement under subparagraph 14d(2) the Agency procurement officer
shall pay the CONTRACTOR the following amounts, provided payments agreed to under
subparagraph 14d(2) shall not duplicate payments under this subparagraph for the following:
(A) Contract prices for goods or services accepted under the Contract;
(B) Costs incurred in preparing to perform and performing the terminated portion of the
performance plus a fair and reasonable profit on such portion of the performance,
such profit shall not include anticipatory profit or consequential damages, less
amounts paid or to be paid for accepted goods or services; provided, however, that if
it appears that the CONTRACTOR would have sustained a loss if the entire
Contract would have been completed, no profit shall be allowed or included and the
amount of compensation shall be reduced to reflect the anticipated rate of loss;
(C) Costs of settling and paying claims arising out of the termination of subcontracts or
orders pursuant to subparagraph 14b. These costs must not include costs paid in
accordance with subparagraph 14d(3)(B);
(D) The reasonable settlement costs of the CONTRACTOR, including accounting, legal,
clerical, and other expenses reasonably necessary for the preparation of settlement
claims and supporting data with respect to the terminated portion of the Contract and
for the termination of subcontracts thereunder, together with reasonable storage,
transportation, and other costs incurred in connection with the protection or
disposition of property allocable to the terminated portion of this Contract. The total
sum to be paid the CONTRACTOR under this subparagraph shall not exceed the
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total Contract price plus the reasonable settlement costs of the CONTRACTOR
reduced by the amount of payments otherwise made, the proceeds of any sales of
supplies and manufacturing materials under subparagraph 14d(2), and the contract
price of performance not terminated.
(4) Costs claimed, agreed to, or established under subparagraphs 14d(2) and 14d(3) shall be in
accordance with Chapter 3-123 (Cost Principles) of the Procurement Rules.
15. Claims Based on the Agency Procurement Officer's Actions or Omissions.
a. Changes in scope. If any action or omission on the part of the Agency procurement officer (which
term includes the designee of such officer for purposes of this paragraph 15) requiring performance
changes within the scope of the Contract constitutes the basis for a claim by the CONTRACTOR for
additional compensation, damages, or an extension of time for completion, the CONTRACTOR shall
continue with performance of the Contract in compliance with the directions or orders of such
officials, but by so doing, the CONTRACTOR shall not be deemed to have prejudiced any claim for
additional compensation, damages, or an extension of time for completion; provided:
(1) Written notice required. The CONTRACTOR shall give written notice to the Agency
procurement officer:
(A) Prior to the commencement of the performance involved, if at that time the
CONTRACTOR knows of the occurrence of such action or omission;
(B) Within thirty (30) days after the CONTRACTOR knows of the occurrence of such
action or omission, if the CONTRACTOR did not have such knowledge prior to the
commencement of the performance; or
(C) Within such further time as may be allowed by the Agency procurement officer in
writing.
(2) Notice content. This notice shall state that the CONTRACTOR regards the act or omission
as a reason which may entitle the CONTRACTOR to additional compensation, damages, or
an extension of time. The Agency procurement officer, upon receipt of such notice, may
rescind such action, remedy such omission, or take such other steps as may be deemed
advisable in the discretion of the Agency procurement officer;
(3) Basis must be explained. The notice required by subparagraph 15a(1) describes as clearly as
practicable at the time the reasons why the CONTRACTOR believes that additional
compensation, damages, or an extension of time may be remedies to which the
CONTRACTOR is entitled; and
(4) Claim must be justified. The CONTRACTOR must maintain and, upon request, make
available to the Agency procurement officer within a reasonable time, detailed records to the
extent practicable, and other documentation and evidence satisfactory to the STATE,
justifying the claimed additional costs or an extension of time in connection with such
changes.
b. CONTRACTOR not excused. Nothing herein contained, however, shall excuse the CONTRACTOR
from compliance with any rules or laws precluding any state officers and CONTRACTOR from
acting in collusion or bad faith in issuing or performing change orders which are clearly not within
the scope of the Contract.
c. Price adjustment. Any adjustment in the price made pursuant to this paragraph shall be determined in
accordance with the price adjustment provision of this Contract.
16. Costs and Expenses. Any reimbursement due the CONTRACTOR for per diem and transportation expenses
under this Contract shall be subject to chapter 3-123 (Cost Principles), HAR, and the following guidelines:
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a. Reimbursement for air transportation shall be for actual cost or coach class air fare, whichever is less.
b. Reimbursement for ground transportation costs shall not exceed the actual cost of renting an
intermediate-sized vehicle.
c. Unless prior written approval of the HOPA is obtained, reimbursement for subsistence allowance
(i.e., hotel and meals, etc.) shall not exceed the applicable daily authorized rates for inter-island or
out-of-state travel that are set forth in the current Governor's Executive Order authorizing adjustments
in salaries and benefits for state officers and employees in the executive branch who are excluded
from collective bargaining coverage.
17. Payment Procedures; Final Payment; Tax Clearance.
a. Original invoices required. All payments under this Contract shall be made only upon submission by
the CONTRACTOR of original invoices specifying the amount due and certifying that services
requested under the Contract have been performed by the CONTRACTOR according to the Contract.
b. Subject to available funds. Such payments are subject to availability of funds and allotment by the
Director of Finance in accordance with chapter 37, HRS. Further, all payments shall be made in
accordance with and subject to chapter 40, HRS.
c. Prompt payment.
(1) Any money, other than retainage, paid to the CONTRACTOR shall be disbursed to
subcontractors within ten (10) days after receipt of the money in accordance with the
terms of the subcontract; provided that the subcontractor has met all the terms and
conditions of the subcontract and there are no bona fide disputes; and
(2) Upon final payment to the CONTRACTOR, full payment to the subcontractor,
including retainage, shall be made within ten (10) days after receipt of the money;
provided that there are no bona fide disputes over the subcontractor's performance
under the subcontract.
d. Final payment. Final payment under this Contract shall be subject to sections 103-53 and 103D-328,
HRS, which require a tax clearance from the Director of Taxation, State of Hawaii, and the Internal
Revenue Service, U.S. Department of Treasury, showing that all delinquent taxes, if any, levied or
accrued under state law and the Internal Revenue Code of 1986, as amended, against the
CONTRACTOR have been paid. Further, in accordance with section 3-122-112, HAR,
CONTRACTOR shall provide a certificate affirming that the CONTRACTOR has remained in
compliance with all applicable laws as required by this section.
18. Federal Funds. If this Contract is payable in whole or in part from federal funds, CONTRACTOR agrees that,
as to the portion of the compensation under this Contract to be payable from federal funds, the
CONTRACTOR shall be paid only from such funds received from the federal government, and shall not be
paid from any other funds. Failure of the STATE to receive anticipated federal funds shall not be considered
a breach by the STATE or an excuse for nonperformance by the CONTRACTOR.
19. Modifications of Contract.
a. In writing. Any modification, alteration, amendment, change, or extension of any term, provision, or
condition of this Contract permitted by this Contract shall be made by written amendment to this
Contract, signed by the CONTRACTOR and the STATE, provided that change orders shall be made
in accordance with paragraph 20 herein.
b. No oral modification. No oral modification, alteration, amendment, change, or extension of any
term, provision, or condition of this Contract shall be permitted.
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c. Agency procurement officer. By written order, at any time, and without notice to any surety, the
Agency procurement officer may unilaterally order of the CONTRACTOR:
(A) Changes in the work within the scope of the Contract; and
(B) Changes in the time of performance of the Contract that do not alter the scope of the Contract
work.
d. Adjustments of price or time for performance. If any modification increases or decreases the
CONTRACTOR'S cost of, or the time required for, performance of any part of the work under this
Contract, an adjustment shall be made and this Contract modified in writing accordingly. Any
adjustment in contract price made pursuant to this clause shall be determined, where applicable, in
accordance with the price adjustment clause of this Contract or as negotiated.
e. Claim barred after final payment. No claim by the CONTRACTOR for an adjustment hereunder
shall be allowed if written modification of the Contract is not made prior to final payment under this
Contract.
f. Claims not barred. In the absence of a written contract modification, nothing in this clause shall be
deemed to restrict the CONTRACTOR'S right to pursue a claim under this Contract or for a breach of
contract.
g. Head of the purchasing agency approval. If this is a professional services contract awarded pursuant
to section 103D-303 or 103D-304, HRS, any modification, alteration, amendment, change, or
extension of any term, provision, or condition of this Contract which increases the amount payable to
the CONTRACTOR by at least $25,000.00 and ten per cent (10%) or more of the initial contract
price, must receive the prior approval of the head of the purchasing agency.
h. Tax clearance. The STATE may, at its discretion, require the CONTRACTOR to submit to the
STATE, prior to the STATE'S approval of any modification, alteration, amendment, change, or
extension of any term, provision, or condition of this Contract, a tax clearance from the Director of
Taxation, State of Hawaii, and the Internal Revenue Service, U.S. Department of Treasury, showing
that all delinquent taxes, if any, levied or accrued under state law and the Internal Revenue Code of
1986, as amended, against the CONTRACTOR have been paid.
i. Sole source contracts. Amendments to sole source contracts that would change the original scope of
the Contract may only be made with the approval of the CPO. Annual renewal of a sole source
contract for services should not be submitted as an amendment.
20. Change Order. The Agency procurement officer may, by a written order signed only by the STATE, at any
time, and without notice to any surety, and subject to all appropriate adjustments, make changes within the
general scope of this Contract in any one or more of the following:
(1) Drawings, designs, or specifications, if the goods or services to be furnished are to be
specially provided to the STATE in accordance therewith;
(2) Method of delivery; or
(3) Place of delivery.
a. Adjustments of price or time for performance. If any change order increases or decreases the
CONTRACTOR'S cost of, or the time required for, performance of any part of the work under this
Contract, whether or not changed by the order, an adjustment shall be made and the Contract
modified in writing accordingly. Any adjustment in the Contract price made pursuant to this
provision shall be determined in accordance with the price adjustment provision of this Contract.
Failure of the parties to agree to an adjustment shall not excuse the CONTRACTOR from proceeding
with the Contract as changed, provided that the Agency procurement officer promptly and duly
makes the provisional adjustments in payment or time for performance as may be reasonable. By
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