304.02

Northern Arizona University
Purchasing Policy and Procedure

Sole Source

POLICY:

The Board of Regents Procurement Code requires goods or services shall be procured with the maximum practicable competition. This policy requires competitive sealed bidding for goods and services costing more than $50,000. The bidding requirement may be waived by the Director of Procurement for the procurement of sole source items.

PROCEDURE:

To request a sole source procurement, the requisitioner must submit a written justification. The justification may be in the form of a memo or may be submitted on the "Justification for Sole Source" form. The justification shall include the following:

1. A description of the technical performance characteristics of the goods or services including a description of the unique property(s) of the goods or services specified.



2. A brief description of the intended use of the goods or services specified, establishing a requirement for the unique property(s) identified.



3. A statement that the item is only available from one supplier. (The user should state the names of suppliers they know are not able to meet requirements and the reasons they do not.)

FEDERAL GRANTS:

For federal grants, independent contractor services may be considered a sole source procurement if:

1. The grant specifies independent contractors or professional services by name or company.
   
   -and-
   
   
2. Approval for the grant requires use of these specified independent contractors or professional services.

The requisitioner must submit a copy of the grant portion that specifies the independent contractor or professional services with the justification for sole source.

PROCESSING THE REQUEST FOR SOLE SOURCE PURCHASE IN THE Purchasing Services:

When the buyer receives a requisition with a sole source justification he/she shall verify the following:

1. That the justification is sufficiently detailed to clearly establish only the good(s) or service(s) specified will meet the needs of the user.
   
   NOTE: The buyer will notify the department of the decision to bid the item if he/she is aware of additional sources of supply.



2. That the price to be paid for the good(s) and/or service(s) is the same as or lower than normally charged to equivalent customers.
   

   The buyer will get a written quotation for the sole source item(s). Pricing and terms shall be negotiated with the vendor. The buyer must be satisfied the price to be paid is the best available pricing for the item. Price analysis is required. This may be achieved by the following:

   1. Comparing the quoted price with the prices previously paid for the same or similar items.
   
   
   
   2. Comparing the quoted price with existing contracts, such as state contracts, GSA contracts, etc.
   
   
   
   3. A written statement from the vendor that the price quoted is the best available to the University and includes all applicable University and quantity discounts.

The buyer shall then sign the sole source justification and submit all documentation for the approval of the Director of Procurement. When the sole source justification is approved the purchase order will be issued. A copy of the purchase order and sole source documentation will then be filed in a central Sole Source file in the Purchasing Services.