PROCEDURE SOURCE:
Purchasing & Material Management
PROCEDURE NO: 127
PAGE NO.: 1 OF 3
SUPERCEDES: 0
TITLE: Sole & Single Source Purchases and
Justification Form
SUBMITTED BY: Thomas K. Dove
REVISED DATE: October 07, 2011
APPROVED BY: Claire P. Wurmfeld
I.
PURPOSE
The purpose of this procedure is to provide a means to document purchases, $1500.00, per
unit price, and over, when competition may or may not be feasible or available. The
University department must justify and document the selection and establish the
reasonableness of price.
II.
SCOPE
This procedure applies to all University Departments/Colleges. The Purchasing Office using
valid supportable documentation provided by the department will make the final
determination. Sole Source and Single Source purchases are different in definition and use.
The common thread through each type of purchase is the justification to procure from a
sole or single source cannot be based solely on quality or price; quality can be a subjective
evaluation and pricing is subject to the level of competition.
III.
DEFINITIONS
Sole Source is procurement in which only one vendor is capable of supplying the commodity
or service. This may occur when the goods or services are specialized or unique in character.
Written justification must be provided. ‘Sole’ means ‘the one and only’.
Single Source is procurement in which, although two or more vendors supply the
commodities or services, the department selects one for substantial reasons, eliminating the
competitive bidding process. ‘Single’ means ‘the one among others’.
Emergency Purchases, urgent and unexpected requirements, are exempt from the formal
competitive bidding process but the department must be able to justify and document the
selection of vendor and establish reasonableness of the price.
IV.
POLICY
Sound fiscal management and common sense dictate that purchases of goods and services,
$1500.00, per unit price, and over, should be made from the best source considering price,
quality, and service. This logic applies regardless of the size or complexity of the transaction.
It is mandatory to obtain a quote from the sole source or single source supplier.
V.
PROCEDURE
REQUEST FOR EXCEPTION
Both ‘sole source’ and ‘single source’ purchases must be able to withstand the scrutiny of The test
of ‘no alternatives’. The submittal of a ‘request for exception’ and its documentation represents a
good faith certification on behalf of the department and signatory as well as the ability to
substantiate the request and sustain any inquires.
‘Sole Source’ and ‘Single Source’ requests are not valid when:
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Personal preference for a product, brand or vendor exists.
The statement of ‘no substitution’ is the only rationale.
Lack of planning exists on behalf of the requesting department.
Vendor has been the exclusive contractor or authorized vendor.*
*(This is acceptable if documented pricing agreement, blanket purchase order, or ‘time &
materials’ contract is in place).
DOCUMENTATION OF REQUEST
Where there is a reasonable basis to conclude that the minimum needs of the University can be
met by unique commodities or services only from a ‘sole source’ or ‘single source’, the
department will accompany its purchase requisition with a quote and a completed ‘Justification
Form’.
The requesting department must complete all sections of the ‘Justification Form’ and attach
all information and quotes regarding the item or service that is being purchased.