Sole Source Training

Definitions: From NIGP Online Dictionary Sole Source Procurement : A situation created due to the inability to obtain competition. May result because only one vendor or supplier possesses the unique ability or capability to meet the particular requirements of the solicitation. The purchasing authority may require a justification from the requesting agency explaining why this is the only source for the requirement. Sole Sourcing: Selection of one particular supplier to the exclusion of all others. This decision may be based on lack of competition, proprietary technology, copyright or a supplier’s unique capability. In government procurement, a sole source justification may be required from the requestor.

Sole Source Guidelines Utah Administrative Code R33-3-401 Conditions for Use of Sole Source Procurement. Sole source procurement shall be used only if a requirement is reasonably available from a single supplier. A requirement for a particular proprietary item does not justify a sole source procurement if there is more than one potential bidder or offeror for that item. Examples of circumstances which could necessitate sole source procurement are: (1) where the compatibility of equipment, accessories, replacement parts, or service is the paramount consideration; (2) where a sole supplier's item is needed for trial use or testing; (3) procurement of items for resale; (4) procurement of public utility services. The determination as to whether a procurement shall be made as a sole source shall be made by the procurement officer. Each request shall be submitted in writing by the using agency. The officer may specify the application of the determination and its duration. In cases of reasonable doubt, competition should be solicited. Any request by a using agency that a procurement be restricted to one potential contractor shall be accompanied by an explanation as to why no other will be suitable or acceptable to meet the need. R33-3-402 Negotiation in Sole Source Procurement. The procurement officer shall conduct negotiations, as appropriate, as to price, delivery, and terms.

Key Word = Sole

Filling out the Sole Source Form First determine whether you are requesting an Agency contract, or a Purchase order and click the correct Check-off box. If requesting an Agency contract enter the initial term of the contract, and renewal options if any in the appropriate fields on line 2. of the Agency Contract section. If your requesting a Purchase order for a one time purchase you need to have a FINET RQS entered and the number put in the field on line 2. of the Purchase order section before submitting the Sole Source form to State Purchasing. If the purchase or contract is for Information Technology (IT) related products or services, DTS has to approve the Sole Source before it is sent to State Purchasing (63F-1-205). The written approval of DTS should be included with the Sole Source request, usually a copy of the remedy approval. If not it will be sent back.

Filling out the Sole Source Form Make sure you send a copy of the suppliers quotation with the request. Enter the Requesting Department. Enter the Requesting Division. Enter the Contact Person and Title. Enter the Contact Person’s e-mail address. Enter the Contact Person’s phone number. Enter a Description of Product/Service to be Purchased. Enter the Total Cost (Including renewal periods). Enter the Freight Cost. Enter the Supplier Name. Enter Supplier Contact Person. Enter the Supplier E-mail Address. Enter Ordering and Remittance Address including zip codes. Enter the FINET Vendor Number (if available).

Filling out the Sole Source Form Enter Federal Tax ID, or Social Security # if no FINET Vendor Number exists. Check the box for Type of Supplier Explain in Detail why the service or product is only available from a single supplier. The more detail & information the better. Click the Check-boxes that apply to your Sole Source request (all that apply). Section A. General Information 1. Enter what is unique about this product/service to justify a sole source. 2. Answer whether or not the product / service can be reasonably modified to allow for competition. 3. Explain the market research performed to make the sole source recommendation. 4. List the names of suppliers contacted, contact person and summary of their response 5. Complete disclosure must be included with this request if the requestor has any personal, financial or fiduciary relationship with the recommended supplier.

Filling out the Sole Source Form Section B. Compatibility of Equipment / Service 1. Describe the existing equipment that this purchase must be compatible with, original purchase price and date of purchase. 2. What’s the remaining life expectancy of the existing equipment? 3. What procurement method was used to purchase the existing equipment? (ITB, RFP, Sole Source) Provide the Solicitation number, RQS number or Sole Source number. Section C. Trial or Testing 1. Why is the trial use or testing necessary? 2. What is the anticipated end result of the trial or test? 3. Do any other suppliers provide this product or service? A. If yes, list the company names:

Filling out the Sole Source Form B. Will their products be tested? 4. What criteria were used to choose this supplier? 5. What is the scope/size and location of test or trial? ____________________________________ Remember: The request needs to include complete and accurate information regarding why the purchase is a Sole Source, including contacts made with other vendors, research done, etc. Sole Source requests that exceed $50,000.00 for the full contract term or purchase amount must be posted for 5 business days on our electronic bidding system, BidSync, so that suppliers have an opportunity to comment or dispute the Sole Source nature of the purchase. All comments or disputes are forwarded to the requesting agency for resolution before the sole source can continue.

Filling out the Sole Source Form The Sole Source form is signed by entering your name in the “Requested by” field. The requestor should be someone authorized by the agency to request purchases and/or agency contracts. Enter the date. E-mail the completed form, unless IT related, along with a copy of the quotation from the supplier to kmisiak@utah.gov . If IT related, or possibly IT related, you must submit through Remedy and DTS before sending to State Purchasing. DTS is the only one that can make that determination. If you have questions on this process or what you need to do contact Paul Carr in DTS at pcarr@utah.gov . (63F -1-205) This form is also used for: Single Sources, Contracts with Federal Government & other State Governments & Open Enrollment to qualified vendors (such as Health Services).

Sole Source Guidelines Sole Source means only source. Not best source, not preferred source, not most convenient source or favorite source. SOLE Source. The amount listed on the Sole Source request is the maximum amount that State Purchasing will allow for the contract term, or full purchase, including renewals. Requests to increase the contract over the costs listed in the Sole Source will require a new Sole Source to be processed. Sole Source requests with blank fields, incomplete information or that have not followed the correct process will be sent back (rejected).

Sole Source Guidelines On IT related Sole Sources the posting period does not start until it comes back down through DTS, or we get the Remedy approvals. During the posting period when State Purchasing receives comments or protests regarding the Sole Source those are immediately sent to the requesting agency to rectify. The requesting agency should contact the commenting / protesting supplier and discuss the issues. Based on clarification, the supplier may choose to withdraw it’s comment/protest. Until the comments or protests of a particular Sole Source are rectified it cannot move forward.

Sole Source Guidelines From Utah Administrative Code R33-3-401 – The determination as to whether a procurement shall be made as a Sole Source shall be made by the procurement officer. In cases of reasonable doubt, competition should be solicited. If a Sole Source receives a fair number of comments or protests the Purchasing Agent at State Purchasing can halt the Sole Source process, ask the requesting agency for additional information including specifications, mandatory requirements, an RFP document or other documentation to put the procurement out for competitive solicitation.

Sole Source Guidelines Always use the current form found on our website when filling out your Sole Source requests. This will be the most up to date form. Please destroy, delete or erase any copies you have saved on your computer or network. Older versions of the form will be sent back (rejected). Website: http://www.purchasing.utah.gov/ Questions ? ? ? ? ? ? ? ? ?