Current through Register Vol. 48, No. 38, September 20, 2024
a) Application
The provisions of this Section apply to procurement from a
sole economically feasible source (referred to as sole source) unless the
estimated amount of the procurement is within the limit set in Section
1120.2020 or
unless emergency conditions exist as defined in Section
1120.2030.
b) Conditions for Use of Sole Source
Procurement
Sole source procurement is permissible when a requirement is
available from only a single supplier or when only one supplier is deemed
economically feasible. A requirement for a particular proprietary item does not
justify a sole source procurement if there is more than one potential bidder or
offeror authorized to provide that item. The following are examples of
circumstances that could necessitate sole source procurement:
1) the compatibility of equipment,
accessories, replacement parts, or service is a paramount
consideration;
2) a sole supplier's
items are needed for trial use or testing;
3) a sole supplier's item is to be procured
for commercial resale;
4) public
utility regulated services are to be procured;
5) the item is copyrighted or patented and
the item or service is not available except from the holder of the copyright or
patent;
6) the procurement is of
media and advertising;
7) the
procurement is of art or entertainment services; and
8) existing contracts are being changed (see
subsection (c)).
c)
Changes
1) Changes to an existing contract
that are germane and reasonable in scope and cost in relation to the original
contract or program, that are necessary or desirable to complete the contract
or program, and that can be best accomplished by the contract holder may be
procured under this Section when the CPO determines that the cost of delay or
disruption to the contract or program, and the cost of new solicitation,
clearly indicate that the existing vendor is the sole economically feasible
source.
2) A change (whether in
cost or rate) that does not exceed the applicable small purchase limit as
defined in Section
1120.2020 or that
is an emergency as defined in Section 1120.2030, may be made in accordance with
procedures governing those Sections and need not comply with these sole source
procedures. A change in the length of the contract that does not exceed 30 days
and other minor, immaterial changes to the scope or administrative provisions
of a contract shall not be considered changes subject to these sole source
procedures.
d) CPO to
Determine
1) The determination as to whether
a procurement shall be made as a sole source shall be made by the CPO. The
determination and the basis for the determination shall be in writing. The CPO
may specify the application of the determination and the duration of its
effectiveness.
2) Any purchase
request submitted to the CPO suggesting that a procurement be restricted to one
potential vendor shall be accompanied by an explanation as to why no other
vendor will be suitable or acceptable to meet the need.
e) Publication of Sole Source Notice
The CPO shall publish in the Bulletin notice of intent to
contract with that vendor at least 14 days prior to execution of the
contract.
1) If no challenge to this
determination is made by a vendor within the 14 day period, the CPO may execute
a contract with that vendor.
2) If
a challenge is received, the Procurement Officer shall consider the information
and shall commence a competitive procurement if the CPO determines that more
than one economically feasible source may be available and the sole source
designation is, therefore, not appropriate, unless an emergency situation
exists.
3) Any person challenging a
sole source determination may request a public hearing.
f) Negotiation in Sole Source Procurement
The Procurement Officer shall conduct negotiations, as
appropriate, to reach contract terms, including price, and shall maintain a
record of each sole source procurement showing:
1) the vendor's name;
2) the amount and type of the contract;
and
3) a listing of the supplies,
services or construction procured under each contract.
g) Prohibition Against Amending a Contract
for Professional or Artistic Services The provisions of this Part shall not
apply to an amendment to a contract for professional or artistic services if:
1) there is an increase in the amount paid
under the contract of more than 5% of the initial award; or
2) the term of the contract would extend by a
period not to exceed the time reasonably needed for a competitive procurement
or 2 months, whichever is less.
