SOP-PURCH-05: Sole Source/Single Source Documentation

Number: SOP-PURCH-05

Subject: Sole Source/Single Source Documentation

Summary: Describes when a single or sole purchase is allowable and justifications that must be provided by department.

Source: University Procurement Services

Date of Issue: 02/18/1992

Date of Revision: 10/03/2019

Procedure

Sole source procurement refers to those purchases where there is only one supplier that provides the required product or service. Sole source purchase requests will be considered when no alternative exists for the item(s) or service(s) required and the identified source can be documented as the only source available. The determination is based on the unique qualifications or specifications of the purchase such that no other source exists. These are typically instances of true proprietary offerings with no equivalents or alternates to be considered. 'Sole' means 'the one and only'.

Single source purchasing refers to purchases from one selected supplier, even though there are other suppliers that provide similar products. Single source purchase requests will be considered in instances where alternate products and sources exist, but only one truly meets the needs of the requesting department and all others are found to be inferior. 'Single' means 'the one among others'.

Single Source Purchase Justification

The requestor must state the circumstances leading to the selection of the supplier, any alternatives considered, rationale for selecting the supplier and how it was determined that the price was fair and reasonable.

Guidelines for Substantiating Single Source

• Past experience with a particular issue and this supplier has the historical knowledge or was the original installer.
• Experience with similar projects at other universities or governmental agencies.
• Demonstrated expertise.
• Capacity and willingness to respond to an emergency situation.

Price Justification

• Competitive quote but other suppliers could not meet specifications.
• Comparison to product catalog.
• Comparison to similar product/service.
• Published price lists.
• Prices quoted are less than or equal to, those quoted to other governmental agencies.
• Records of previously bid items that were similar.
• Proven industry standard.

Sole Source Purchase Justification

The explanation must have three components:

1. Why is the item/service unique?
2. How do you know that there is only one source for this item/service?
3. The basis upon which the price/cost was determined to be fair and reasonable.

Or could be a “Professional Services/Personal Services” optional component as detailed in number four below.

Guidelines for Substantiating Sole Source

1. Why is the item/service unique?
   • A description of the feature(s) that make the item/service unique and why this benefits your department or project.
   • Compatibility with, or component of, an existing item; it is necessary to provide enough detail to demonstrate that compatibility.
   • Original manufacturer/supplier, i.e. software, license.
   • Supplier holds a service contract and must supply parts to accomplish a contract.
   • Emergency order and no other supplier available at the time.
   • Proprietary purchase, no other supplier available.
2. How do you know that there is only one source for this item/service?
   • Proprietary purchase, no other supplier available.
   • Other—please explain.
3. Price Justification
   • Comparison to product catalog.
   • Comparison to similar product/service.
   • Published price lists.
   • Prices quoted are less than or equal to, that quoted to other governmental agencies.
   • Records of previously bid items that were similar.
   • Proven industry standard.
4. Professional Services/Personal Services
   • Professional Services: Highly specialized functions, typically of a technical nature, performed by a supplier that, with respect to the services to be rendered, most commonly a) has a professional license; b) is licensed by a regulatory body; and/or c) is able to obtain professional errors and omissions insurance. Professional services are of a nature that the University would consider the supplier’s experience, qualifications and skills to be more important than comparative cost when selecting a supplier. Examples of professional services include medicine and related medical services, and legal, accounting, architectural, and engineering services.
   • Personal Services: Technical or unique functions performed by a supplier that is distinctly qualified to render the services. Personal services are of a nature that the University would consider the supplier’s experience, qualifications and skills to be more important than comparative cost when selecting a supplier. Examples of personal services include translation services, technical editing, technical appraisals, transaction valuation, coaching, interior decorating, and contracts with musicians, artists and others in the performing arts.

See below for link to form.