Non Competitive Purchases
Fiscal Meeting 5/30/13
Sole Source Purchasing
A8.255, A8.250, and RCUH 2.120
• Only one supplier or source (think globally not
just locally)
• Unique and essential requirement
• Requirement can only be met by this
particular good, service, or construction that
has the unique feature, characteristic, or
capability: e.g. proprietary item, compatibility
issues, only one authorized servicer.
• When goods or services are necessary in
a limited quantity for test of evaluation,
the purchase of the item or service may
be on a sole source basis with OPRPM
approval.
• When an item is referred to by an exact
brand, but other brands are available that
qualify as “acceptable alternatives” or
“equals,” the purchase is subject to
competitive bid.
Procurements Approved for Sole Source
July 2012
• Annual license renewal and maintenance for computer software.
Criteria: When license renewal and maintenance can be obtained
from only a single source, normally the developer of the software.
• Procurement of computer software conversions, modifications, and
maintenance for existing programs from the manufacturer of the
software. Criteria: Can only be obtained from the manufacturer of
the software.
• Repair and maintenance services and supplies from the original
equipment manufacturer or its designated representative; when
the manufacturer or its designated representative is required to
provide the services and supplies to retain manufacturer’s warranty
or guarantee.
• Procurement of equipment upgrades from the original
manufacturer to existing equipment and information technology
hardware, when the upgrades can only be obtained from the
manufacturer.
Reminder when requesting Sole
Source or Sole Brand purchasing:
• Attach the proper form OPRPM Form 65 for UH Sole Source
or Form 144 for UH Sole Brand, or Sole Source Justification
for RCUH.
• Determination of Cost or Price Reasonableness (for RCUH),
OPRPM Form 95 (for UH), is required to verify that the
price offered is fair and reasonable.
• PO should cite: “Approved for Sole Source Procurement
pursuant to Administrative Procedure A8.255, Sole Source
No.___. (cite applicable sole source reason)”
• Within your delegated purchasing authority, the FA is
responsible to ensure that each sole source purchase is
fully justified, the price is fair and reasonable, and the basis
for decision is included in the PO documentation.
Sole Brand A8.255
• When an item is unique, but is available from
more that one supplier.
• Subject to competitive bid, but should be
designated by brand name and model
number.
• Sole Brand must be justified on OPRPM Form
144.
• Note: RCUH does not recognize Sole Brand,
treat it as a sole source purchase.
Cost or Price Reasonableness
A8.285 and RCUH 2.125
• Purpose: To insure public funds are being
expended to the best advantage of UH
• Price Analysis = process of determining that a
price is fair and reasonable. It should include
an evaluation of prices for same or similar
goods or services.
• Cost Analysis = review of the cost elements to
determine necessity and whether cost is
allocable, allowable, and reasonable.
Requirements:
• OPRPM Form 95 for UH; Determination of Cost or
Price Reasonableness for RCUH
• Must be completed for sole source purchases.
• Must be completed when only one quotation is
received or the lowest quote is not selected.
• Must be completed when there is a price
adjustment to an existing contract other than
changes to tax, shipping charges, or insurance.
• Must be completed for professional services
procurements.
Content to consider:
• Evaluation of the prices for same or similar goods
or services.
• Prior price quotations
• Published catalog or price lists
• Prices on the open market (i.e. internet)
• In-house estimates of cost (i.e. ESF)
• Comparisons with expenditures of similar
institutions.
• Discounts
• Prevailing rates in industry or profession
Exempt Procurement
A8.220.9 and RCUH 2.145
• Exempt procurements still require cost price
reasonableness analysis.
• Within the body of the PO you should cite:
“Exempt purchase, pursuant to UH APM
Section A8.220.9, Exemption No. ___ (cite
applicable from the list)”
Common Exemptions:
• 5) Payment of dues or fees of organizations
• 7) Disbursements to governmental bodies of the State of Hawaii
• 13) Research, reference, and educational materials including books, maps,
periodicals, and pamphlets…and cost associated with publication of
articles in scholarly journals
• 24) New or used items which are advantageous and available on short
notice through an auction, bankruptcy, or foreclosure
• 25) Food and fodder for animals
• 26) Facility costs for conferences, meetings, and training sessions
• 30) Procurement of repair services when dismantling is required to assess
the extent of repairs
• 33) Subscription costs and registration or workshop fees for conferences
or training