Section 1120.2025  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 1120.2020 (Small Purchases) or unless emergency conditions exist as defined in Section 1120.2030 (Emergency Procurements).

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)         public utility regulated 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; and

6)         extending an existing contract for such period of time as is needed to conduct a competitive method of source selection where terminating or allowing the contract to terminate would not be advantageous to the State.

c)         Changes.

1)         Changes to existing contracts germane 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.

2)         A change (whether in cost or rate) that does not exceed the applicable small purchase limit as defined in Section 1120.2020 of this Part or that is an emergency as defined in Section 1120.2030 of this Part, may be made in accordance with procedures governing those Sections and need not comply with these sole source procedures.  A change in the length of the contract that does not exceed 30 days and other minor, immaterial changes to the scope or administrative provisions of a contract shall not be considered changes subject to these sole source procedures.

d)         SPO to Determine.

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

2)         Any purchase request submitted to the SPO that a procurement be restricted to one potential vendor shall be accompanied by an explanation as to why no other vendor will be suitable or acceptable to meet the need.

e)         Publication of Sole Source Notice.

            The Purchasing Agency 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 is convinced the sole source designation is not appropriate, unless an emergency situation now exists.

f)          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)         a listing of the supplies, services, or construction procured under each contract; and

4)         the identification number of the contract file.