Section 500.340  Sole Economically Feasible Source Procurement

a)         Application

The provisions of this Section apply to procurement from a sole economically feasible source (referred to as sole source) unless the estimated amount of the procurement is within the limit set in Section 500.330 (Small Purchases) or unless emergency conditions exist as defined in Section 500.350 (Emergency Procurements) of this Part.

b)         Conditions for Use of Sole Source Procurement

Sole source procurement is permissible when a requirement is available from only a single supplier or when only one supplier is deemed economically feasible.  A requirement for a particular proprietary item does not justify a sole source procurement if there is more than one potential offeror authorized to provide that item.  The following are examples of circumstances that could necessitate sole source procurement:

1)         where the compatibility of equipment, accessories, replacement parts, or service is a paramount consideration;

2)         where a sole supplier's items are needed for trial use or testing;

3)         where a sole supplier's item is to be procured for commercial resale;

4)         where public utility regulated services are to be procured;

5)         where the item is copyrighted or patented and the item or service is not available except from the holder of the copyright or patent;

6)         the procurement of the media for advertising;

7)         the procurement of art, educational (including training for continuing professional education) or entertainment services; and

8)         changes to existing contracts (see subsection (c)).

c)         Changes

1)         Changes to an existing contract that are germane and reasonable in scope and cost in relation to the original contract or program, that are necessary or desirable to complete the contract or program, and that can be best accomplished by the contract holder may be procured under this Section when the Procurement Officer determines that the cost of delay or disruption to the contract or program, and the cost of a new solicitation, clearly indicate that the existing vendor is the sole economically feasible source.

2)         A change (whether in cost or rate) that does not exceed the applicable small purchase limit as defined in Section 500.330 of this Part, or that is an emergency as defined in Section 500.350 of this Part, may be made in accordance with procedures governing those Sections and need not comply with these sole source procedures.

d)         Procurement Officer to Determine

The Procurement Officer shall determine whether a procurement shall be made as a sole source.  The determination and its basis shall be in writing.

e)         Publication of Sole Source Notice

The Procurement Officer shall publish in the Auditor General Bulletin notice of intent to contract with that vendor at least 14 days prior to execution of the contract.

1)         If no challenge to this determination is made by a vendor within the 14 day period, the OAG may execute a contract with that vendor.

2)         If a challenge is received, the Procurement Officer shall consider the information and shall commence a competitive procurement if the Procurement Officer determines that more than one economically feasible source may be available and the sole source designation is not appropriate, unless an emergency situation exists.

f)          Negotiation in Sole Source Procurement

The Procurement Officer shall conduct negotiations, as appropriate, to reach contract terms, including price, and shall maintain a record of each sole source procurement showing:

1)         the vendor's name;

2)         the amount and type of the contract;

3)         what was procured; and

4)         the identification number of the contract file.