COP 04-1005: Sole Source/Single Source Procurement

Purpose Statement

Describe the process for the acquisition of goods or services when a single or sole source of a good or service is available to meet a specific need.

Guidelines

Competitive procurement may be impractical when a single/sole source of a good or service is available to meet a specific need. Single/sole sourcing is not to be utilized to circumvent normal purchasing procedures nor for a price-based justification. Single/sole sourcing procurement applies to the purchase of any single item where the total value is $65,000 or greater.

Procedures

1. Definition
   • Sole source procurement must meet both of the following criteria:
     1. It is the only item that will produce the desired results (or fulfill the specific need), and there are no alternates, and;
     2. The item is available from only one source of supply.
     • Note: Warranty requirements and compatibility to existing equipment shall be an acceptable justification for waiver of bidding requirements, provided the item is only available from one source of supply.
   • Single source procurement is a contract for the purchase of goods and/or services, entered into after soliciting and negotiating only with one source, usually because of the following criteria:
     1. The technology required, or
     2. Uniqueness of the item, or
     3. The supplier is uniquely qualified.
     • Note: The uniqueness or unique feature must be of demonstrable real importance and a benefit to the College in the way the item or service is to be used.
2. General
   Purchase of goods or services from a sole/single source is exempt from competitive requirements in accordance with SBE Administrative Rule 6A-14.0734(2) (e). Sole/single source determination/approval shall be made by the Director of Procurement Services.
3. Documentation
   The College department requesting sole/single source procurement shall document the reasons why the good/service is the only acceptable one by documenting the request for purchase via the College form “Sole Source/Single Source Justification” (Form BO-024). Be specific and include information such as the following:
   1. Whether this will be a onetime purchase.
   2. Whether there will be repeated future buys. Include anticipated number of reoccurring transactions and estimated total expenditures.
   3. Current need is a reoccurrence.
   4. Document all efforts made to find alternate sources of supply.
   5. Purpose and need.
   6. Description of and use of the item.
   7. Include why the good or service is the only one that will produce the desired results (or fulfill the specific need).
   8. List unique features that the good/service has that other comparable goods/services do not have, and why these unique features are needed.
   9. Explain if the product is being purchased directly from the manufacturer. If not, explain why the item/service cannot be bid/quoted to the appropriate manufacturer/dealers if any exist.
   10. Explain the necessity for compatibility with existing equipment, if applicable.