Section 526.2025        Sole Economically Feasible Source Procurement

a)         Application

The provisions of this Part 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 526.2020 (Small Purchases) or unless emergency conditions exist as defined in Section 526.2030 (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 bidder or offeror authorized to provide that item.  The following are examples of circumstances that could necessitate sole source procurement:

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

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

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

4)         regulated public utility services are to be procured;

5)         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 or entertainment services or athletic events;

8)         the procurement of radio and television broadcast rights; and

9)         procurements related to participation in mandated educational, research, public service or athletic activities of organizations of which the University is a member.  Such procurements may include, but are not limited to, dues and membership fees, travel and lodging and facility usage fees.

c)         Changes

Changes to an existing contract that are germane and reasonable in scope and cost in relation to the original contract, that are necessary or desirable to complete the project, and that can be best accomplished by the contract holder may be procured under this Section.

d)         SPO to Determine

The determination as to whether a procurement shall be made as a sole source shall be made by the SPO.  The determination and the basis therefor shall be in writing.  The SPO may specify the application of such determination and the duration of its effectiveness.

e)         Treatment of Entertainment and Athletic Events

The procedures set forth in subsections (f) and (h) of this Section are not required for procurements of entertainment performances or athletic events. Generic sole source notices for entertainment performances or athletic events may be published in the Bulletin on a continuous or periodic basis as required to meet the needs of the entertainment or athletic venue.  Contracts for entertainment performances or athletic events may be executed by the SPO on any date provided that the notice has been published for at least 14 days prior to the date of execution.  Notices of contracts awarded for entertainment performances or athletic events shall be published in the Bulletin as soon as practicable after the contracts are cleared by the venue for public announcement pursuant to Sections 15-25 and 20-25 of the Code.

f)          Publication of Sole Source Notice

The SPO shall publish in the 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 SPO may execute a contract with that vendor.

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

g)         Negotiation in Sole Source Procurement

The SPO 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.

h)         Publicizing Awards

Notices of contracts awarded on a sole source basis shall be published in the next available Higher Education Bulletin.  In the rare instance where publication of the contract price would have a detrimental impact on future procurements of similar supplies or services (for example, in connection with the purchase of a complete manuscript or art collection or other rare or one-of-a-kind items), as determined in writing by the SPO, the contract price will not be published with the notice of award but such notice shall indicate that price information is available to the public, upon request, from the SPO who conducted the procurement.