1. Agenda Item No. 8 Part 8: Exceptions to Procurement Requirements 63G-6a-802 Sole source – award of contract without competition –notice Use great caution in sole source procurements! A key definition is “transitional costs” which may be considered when making sole source procurements.

2. a) “Transitional costs” mean the costs of changing from an existing provider of, or type of, a procurement item to another provider of, or type of, procurement item. b) “Transitional costs” include: i.Training costs ii.Conversion costs iii.Compatibility costs iv.System downtime v.Disruption of service vi.Staff time necessary to put the transition into effect vii.Installation costs, and viii.Ancillary software, hardware, equipment, or construction costs c) “Transitional costs” do not include” i.The costs of preparing for or engaging in a procurement process; or ii.Contract negotiation or contract drafting costs Agenda Item No. 8 Part 8: Exceptions to Procurement Requirements Reference: UCA 63G-6a-802(1)

3. (2)A contract may be awarded for a procurement item without competition if the procurement officer determines in writing that there is only one source. (3)Circumstances for finding there is only source Where the most important consideration is compatibility of equipment, technology, software, accessories, replacement parts, etc. Where transitional costs are unreasonable or cost prohibitive Where a procurement item is needed for trial use or testing Procurement of public utility services Agenda Item No. 8 Part 8: Exceptions to Procurement Requirements Sole Source Procurement (con’t.) Reference: UCA 63G-6a-802(2) & (3)

4. (4) Notice of sole source procurements require publication, if the procurement cost exceeds $50,000 Agenda Item No. 8 Part 8: Exceptions to Procurement Requirements (con’t.) Reference: UCA 63G-6a-802(4)

5. The Procurement Officer determines in writing that there is only one source for the procurement item (UCA 63G-6a-802(2) and (3)). Reasons could include:  Where the most important consideration in obtaining a procurement item is the compatibility of equipment, technology, software, accessories, replacement parts, or service;  Where a procurement item is needed for trial use or testing;  Where transitional costs are unreasonable or cost prohibitive; or  Procurement of public utility services. Or, the Procurement Officer determines in writing that the award to a specific supplier, service provider, or contractor is a condition of a donation that will fund the full cost of the supply, service, or construction item. Agenda Item No. 8 Sole Source Procurement Checklist Example Reference: UCA 63G-6a-802(2) &(3)

6. Publish notice of intent to make a sole source procurement on District’s procurement web page at least seven days prior to the procurement, including:  A description of the procurement item(s)  Contact information and other information relating to contesting, or obtaining additional information in relation to, the sole source procurement  The earliest date that District may make the procurement  How to obtain more information related to the sole source procurement Agenda Item No. 8 Sole Source Procurement Checklist Example (con’t.) Reference: UCA 63G-6a-802(2) &(3)

7. Agenda Item No. 9 Part 8: Exceptions to Procurement Requirements 63G-6a-803 Emergency procurement The procurement officer or his/her designee may authorize an emergency procurement. The authorization must be in writing, stating the emergency condition. The procurement should be made with as much competition as reasonably practicable while avoiding harm, or a risk of harm, to the public health, safety, welfare or property. The Procurement Code does not define what constitutes an emergency condition. The phrase underlined above is probably the best description.

8. Agenda Item No. 10 Part 8: Exceptions to Procurement Requirements 63G-6a-804 Purchase of prison industry goods Districts are encouraged (but not required) to purchase goods and services from the prison system. A public procurement process is not required because the Department of Corrections publishes a catalog of goods and services and the prices for each item.

9. Agenda Item No. 10 Part 8: Exceptions to Procurement Requirements 63G-6a-805 Purchase from community rehabilitation programs Districts are encouraged (but not required) to purchase goods and services from these. The goods have to be reasonably competitive and do not require a procurement purchase process, but the goods are identified in a catalog similar to prison goods.