Agenda Item No. 8
Part 8: Exceptions to Procurement Requirements
63G-6a-802 Sole source – award of contract
without competition –notice

Use great caution in sole source procurements!

A key definition is “transitional costs” which may
be considered when making sole source
procurements.
Agenda Item No. 8
Part 8: Exceptions to Procurement Requirements
a)
b)
“Transitional costs” mean the costs of changing from an existing
provider of, or type of, a procurement item to another provider of, or
type of, procurement item.
“Transitional costs” include:
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
c)
Training costs
Conversion costs
Compatibility costs
System downtime
Disruption of service
Staff time necessary to put the transition into effect
Installation costs, and
Ancillary software, hardware, equipment, or construction costs
“Transitional costs” do not include”
i.
ii.
The costs of preparing for or engaging in a procurement process; or
Contract negotiation or contract drafting costs
Reference: UCA 63G-6a-802(1)
Agenda Item No. 8
Part 8: Exceptions to Procurement Requirements
Sole Source Procurement (con’t.)
(2) A contract may be awarded for a procurement item
without competition if the procurement officer
determines in writing that there is only one source.
(3) Circumstances for finding there is only source
 Where the most important consideration is
compatibility of equipment, technology, software,
accessories, replacement parts, etc.
 Where transitional costs are unreasonable or cost
prohibitive
 Where a procurement item is needed for trial use or
testing
Procurement of public utility services
Reference: UCA 63G-6a-802(2) & (3)
Agenda Item No. 8
Part 8: Exceptions to Procurement Requirements
(con’t.)
(4) Notice of sole source procurements require
publication, if the procurement cost
exceeds $50,000
Reference: UCA 63G-6a-802(4)
Agenda Item No. 8
Sole Source Procurement Checklist Example

The Procurement Officer determines in writing that
there is only one source for the procurement item
(UCA 63G-6a-802(2) and (3)). Reasons could include:
 Where the most important consideration in obtaining a
procurement item is the compatibility of equipment, technology,
software, accessories, replacement parts, or service;
 Where a procurement item is needed for trial use or testing;
 Where transitional costs are unreasonable or cost prohibitive; or
 Procurement of public utility services.
• Or, the Procurement Officer determines in writing that
the award to a specific supplier, service provider, or
contractor is a condition of a donation that will fund
the full cost of the supply, service, or construction
item.
Reference: UCA 63G-6a-802(2) &(3)
Agenda Item No. 8
Sole Source Procurement Checklist Example
(con’t.)

Publish notice of intent to make a sole source
procurement on District’s procurement web
page at least seven days prior to the
procurement, including:
 A description of the procurement item(s)
 Contact information and other information relating to
contesting, or obtaining additional information in
relation to, the sole source procurement
 The earliest date that District may make the
procurement
 How to obtain more information related to the sole
source procurement
Reference: UCA 63G-6a-802(2) &(3)
Agenda Item No. 9
Part 8: Exceptions to Procurement Requirements
63G-6a-803 Emergency procurement

The procurement officer or his/her designee may authorize an
emergency procurement.

The authorization must be in writing, stating the emergency
condition.

The procurement should be made with as much competition
as reasonably practicable while avoiding harm, or a risk of
harm, to the public health, safety, welfare or property.

The Procurement Code does not define what constitutes an
emergency condition. The phrase underlined above is
probably the best description.
Agenda Item No. 10
Part 8: Exceptions to Procurement Requirements
63G-6a-804 Purchase of prison industry goods

Districts are encouraged (but not required) to purchase
goods and services from the prison system.

A public procurement process is not required because
the Department of Corrections publishes a catalog of
goods and services and the prices for each item.
Agenda Item No. 10
Part 8: Exceptions to Procurement Requirements
63G-6a-805 Purchase from community rehabilitation
programs

Districts are encouraged (but not required) to purchase goods
and services from these.

The goods have to be reasonably competitive and do not require
a procurement purchase process, but the goods are identified in
a catalog similar to prison goods.