HI SB462

Amends Section 103D-313, Hawaii Revised Statutes to require all performance incentive contracts to specify a pricing basis, performance goals, and a formula for calculating contractor profit, fees, or price decreases based on performance outcomes.

Modifies language regarding cost-reimbursement and cost-plus-a-percentage-of-cost contracts to clarify that the chief procurement officer must determine these contract types are likely to be less costly than alternatives or that obtaining goods, services, or construction is impracticable by other means.

Maintains existing requirements that cost-plus-a-percentage-of-cost contracts cannot be awarded unless notice is given to the compliance audit unit head, legislature leadership, and ways and means/finance committee chairs, and notice is conspicuously posted in the chief procurement officer's office.

Takes effect January 1, 2525.