SOP-PURCH-05: Sole Source Exceptions

Number: SOP-PURCH-05

Subject: Sole Source Exceptions

Summary: Describes the sole source exception request process.

Source: University Procurement Services

Date of Issue: 02/18/1992

Date of Revision: 05/07/2025

Procedure

Stakeholders Identify Possible Exception Reason(s)

Department stakeholders review Section C of the FIN-PURCH-04: Sole Source Orders policy to determine if at least one sole source exception reason applies to the purchasing situation.

Desire to work with the same supplier, or preferring one supplier over another, are not legitimate reasons to request a sole source exception. The purchase must meet at least one of the criteria listed in Section C of the policy.

If stakeholders determine a sole source may be appropriate, proceed to the next step. If not, the competitive bid process is required. The department completes a requisition by following the instructions in the Submit an Order for Competitive Bids guide.

Stakeholders Complete the Sole Source Exception Request Form

The individual with the most knowledge about the purchase completes the Sole Source Exception Request Form. Provide as much justification as possible to support why a sole source exception should be approved for the purchase.

Every Sole Source Exception Request Form must be reviewed and signed by the Fiscal Officer (FO) of the IU account funding the purchase. Purchases with an estimated total cost of $250,000 or more must be reviewed and signed by an executive approver such as a Vice President, Provost, Chancellor, or their designee.

Stakeholders digitally sign the request form, save the document as a PDF, and send the PDF and additional justification documentation to their department requisition submitter.

Requisition Submitter Completes the Requisition

Using the instructions available in the Non-Catalog Order Documentation Library, the requisition submitter builds the order in BUY.IU. The supplier requested on the Sole Source Exception Request Form should be used in the requisition. The Request Form and any additional justification documentation is uploaded to the requisition via the Comments section.

The requisition is submitted for review and approval.

Purchasing Reviews the Exception Request and Requisition

After the requisition is approved by the FO Approval and Org Review workflow steps, it routes to the appropriate category team in Purchasing. Purchasing staff review the Sole Source Exception Request Form and conduct their own research to better understand the options available for the goods or services being purchased. Purchasing may contact the individual who completed the Sole Source Exception Request Form, requisition submitter, or department approvers with additional questions. Depending on the value of the purchase, multiple levels of Purchasing review may be required.

Upon completion of their review, Purchasing takes one of the following actions:

Approved: The appropriate Purchasing representative(s) sign and date the Sole Source Exception Form, upload the signed form to the existing requisition, and approve the requisition. A purchase order is generated and distributed to the requested supplier.

Denied: The appropriate Purchasing representative(s) sign and date the Sole Source Exception Request Form, upload the signed form to the requisition, and notifies the requisition submitter that the sole source exception request is denied and that the competitive bid process must be completed. Purchasing initiates a sourcing event and begins identifying suppliers that will be invited to compete for the business. Review SOP-PURCH-03: Competition and Sourcing for more information about the competitive bid process.