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Sole Source Justification

Summary: When purchasing goods and services valued at $50,000 or more, competitive bidding is required. In the circumstances described below, an exception to the competitive bidding requirement may be granted by the Materiel Manager.

How to complete the sole source justification form

Policy: UC policy for purchase of goods and services requires competitive bids for purchase contracts of $50,000 or more. However, competition is not required for purchases of $50,000 or more if a purchase qualifies as:

• Personal or professional services
• Unique, proprietary, available only from a single source, or designated to be compatible with existing installation, facility, or location

If competition is not sought for a purchase of $50,000 or more ($15,000 for independent consultant services), the department must provide a written Sole Source Justification.

Because markets and availability are always changing, a sole source justification is valid for only one purchase contract. Any subsequent request to purchase the commodity or service as a sole source must be accompanied by a new sole source justification.

Approval of sole source request: All requests for Sole Source Justification MUST be approved by the Materiel Manager who has received delegation of this authority in writing (SCDA-MM0002). Please be aware that:

• An unnecessary or poorly justified sole source purchase may result in negative findings and potential loss of funding.
• "Price" is never the basis for a sole source request.
• As with other purchases, the Purchasing Department will determine that the university is paying a reasonable price by utilizing one or more of the following techniques: documented price comparisons, discounts off published price lists, buyer's knowledge of market, Fair Trade laws and other cost-price analyses.

Basis for sole source request: A sole source purchase is available from only one supplier and meets at least one of the following criteria:

• One-of-a-kind - The commodity or service has no competitive product alternatives available.
• Compatibility - The commodity or service must match existing brand of equipment for compatibility.
• Replacement Part - The commodity is a replacement part for a specific brand of existing equipment.
• Research Continuity - The commodity or service is needed to maintain research continuity.
• University Standards - The commodity or service must comply with established University standards.
• Unique Design - The commodity or service must meet physical design or quality requirements.

OR

• Delivery Date - Only one supplier can meet necessary delivery requirements.
• Emergency - URGENT NEED for the item or service does not permit soliciting competitive bids, as in cases of emergencies, disasters, etc.

When you request a sole source justification, you need to consider and/or document the following:

• Brand or trade names
  When you believe that only a specific brand, trade name, item, or proprietary service will properly satisfy your requirements, include a description of the salient technical features that make that product or service the only one that fulfill your needs.
• Extenuating circumstances
  When the prime-sponsoring agency or governing law directs the purchase, or when unusual or compelling urgency for acquiring the goods or services precludes obtaining formal competition, the purchase may qualify for sole source justification.
• Consultants
  Under UC Policy, agreements for independent consulting services are subject to the requirement for competition if the contract exceeds $15,000. If you do not seek competition, you must provide a written sole source justification with the request for consultant services.

How to complete the sole source justification form:

All requisitions requesting purchase on a "sole source" basis must be accompanied by a completed Sole Source Justication Form giving the Purchasing Department sufficient time to review the materials, evaluate the technical information, and determine that the product or service is unique or proprietary.

In the case of a complex or high risk purchase, we strongly recommend you discuss the sole source justification with a Buyer in the Purchasing Department early in the process. The Buyer will help you assess whether or not the situation qualifies as a sole source.

The Requestor or his/her designee will:

1. Complete all sections of the Sole Source Justification Form. The requestor must provide:
• A clear statement of the unique performance factors of the product or supplier specified
• Why those unique factors are required
• What other products or suppliers were evaluated
• The reason(s) for rejecting the other products or suppliers
2. Get the signature of the Principal Officer. By signing the form, the Principal Officer is certifying that he/she finds the justification accurate, factual, and complete to the best of his/her knowledge.
3. Scan the completed form and attach to the CruzBuy requisition (internal attachment) OR
   FAX the completed form to the appropriate Buyer in Purchasing at 459-3300.

The Purchasing Department Buyer will:

1. Evaluate the justification to ensure it is valid and meets the standards of a Sole Source Justification.
2. Determine that the price to be paid is reasonable.
3. Present the sole source justification to the Materiel Manager for approval.

The Materiel Manager will review and approve the Sole Source Justification.

For more details on policy for requirements for competition and sole source, please see Business and Financial Bulletin (BUS) 43, Part 3, Purchase Transactions.

Revised: August 3, 2009 (ljr)