UAMS ADMINISTRATIVE GUIDE

NUMBER: 5.1.04
DATE: 01/15/97
REVISION:11/07/2003      
SECTION: SUPPORT SERVICES
AREA: PROCUREMENT SERVICES
SUBJECT: SOLE SOURCE PROCUREMENTS

PURPOSE:

The purpose of this policy is to inform all departments within the University of Arkansas for Medical Sciences (UAMS) of the procedures to follow when requesting a sole source procurement of a commodity, service or equipment.

POLICY

A contract for a required or designated commodity, service or equipment may be awarded to a sole supplier only when it is justified in writing and approved by the UAMS Director of Procurement Services and the Assistant Vice-Chancellor for Support Services. Justification must demonstrate that it is not practicable to use other than the designated commodity, service or equipment.


PROCEDURE

1. When it is determined by a department that a particular commodity, service or equipment is the only one that meets their requirements and that only one source is available to provide that commodity, service or equipment, the department may request sole source procurement. The requesting department must complete the attached form justifying why the commodity, service or equipment is considered sole source and that substitute items are not available or suitable. The Director of the requesting department or his/her designee must sign the statement acknowledging agreement with, and approval of the justification for the sole source procurement.

2. The requesting department must then submit an on-line requisition with the written justification faxed to Procurement Services or the justification noted on the comments section of the requisition.

3. Requests for a commodity, service or equipment will be considered a sole source procurement if, by virtue of the performance specifications, the commodity, service or equipment is available only from a single source. Brand name or design specifications shall not be sufficient explanation for sole source. Sole source procurements may include, but shall not be limited to, requirements of performance compatibility with existing commodities, services or equipment or repairs involving hidden damage.

4. The Director of Procurement Services will review the request for sole source procurement and, if it is determined that the commodity, service or equipment being requested does not qualify for sole source procurement because it is available from more than one source, the requesting department will be contacted for instructions on whether to seek competitive bids for the commodity, service or equipment or to delete the requisition.

5. Upon determination by the UAMS Director of Procurement Services that the commodity, service or equipment can be procured by sole source, the request will be forwarded to the Assistant Vice-Chancellor of Support Services for institutional review and approval.

6. Upon institutional approval, the request will be returned to the Procurement Services Department and a purchase order will be processed and released to the Vendor.

SOLE SOURCE JUSTIFICATION FORM FOR COMMODITIES/SERVICES

Requisitions (in excess of $5,000) for items that are to be procured from a specific vendor, where substitutes to the vendor or brand are unacceptable, must be accompanied by a written justification explaining in detail the circumstances that make substitutes unsuitable. The Department Chair, Director, Business Administrator, or Principle Investigator must sign the justification. The Assistant Vice-Chancellor for Support Services or designee determines whether the justification is appropriate. Factual statements that will pass an internal-, federal-, and/or legislative-audit must support justifications. It is the relevant functional features of a product that make it sole source.

This form must be submitted at the time the purchase requisition is entered into SAP when sole source approval is requested for equipment, commodities, material, supplies and services exceeding $5,000.

Please check the appropriate category below and furnish explanation. (NOTE: The explanation of need “MUST” address the critical importance of the unique feature(s) or characteristic(s) as it applied to its intended use in your operation). Attach sheets if necessary.

Complete Section I if the product/service is first-time procurement. Complete Section II if the product/service sole source justification includes on-going research, teaching, or administrative requirements.
SECTION I

Explanation of Need: Identify and explain the need for the unique feature(s) or characteristics(s) applications and circumstances that apply to the specified goods or services.

Reason(s) Why Competing Products are not Acceptable: Provide a brief statement in reference to the identification of other sources that have been reviewed. Include the product name, model number, manufacturer and price quote (if available) of the unacceptable product(s) that have been investigated. State the reason why each product investigated will not meet the needs for its intended use in your operation

Specific Impact on Department: Provide a statement regarding the specific impact on the Department if the goods or services are procured from another source.

SECTION II

PURPOSE:

The purpose of this policy is to inform all departments within the University of Arkansas for Medical Sciences (UAMS) of the procedures to follow when requesting a sole source procurement of a commodity, service or equipment.

POLICY

A contract for a required or designated commodity, service or equipment may be awarded to a sole supplier only when it is justified in writing and approved by the UAMS Director of Procurement Services and the Assistant Vice-Chancellor for Support Services. Justification must demonstrate that it is not practicable to use other than the designated commodity, service or equipment.


PROCEDURE
1. When it is determined by a department that a particular commodity, service or equipment is the only one that meets their requirements and that only one source is available to provide that commodity, service or equipment, the department may request sole source procurement. The requesting department must complete the attached form justifying why the commodity, service or equipment is considered sole source and that substitute items are not available or suitable. The Director of the requesting department or his/her designee must sign the statement acknowledging agreement with, and approval of the justification for the sole source procurement.

2. The requesting department must then submit an on-line requisition with the written justification faxed to Procurement Services or the justification noted on the comments section of the requisition.

3. Requests for a commodity, service or equipment will be considered a sole source procurement if, by virtue of the performance specifications, the commodity, service or equipment is available only from a single source. Brand name or design specifications shall not be sufficient explanation for sole source. Sole source procurements may include, but shall not be limited to, requirements of performance compatibility with existing commodities, services or equipment or repairs involving hidden damage.

4. The Director of Procurement Services will review the request for sole source procurement and, if it is determined that the commodity, service or equipment being requested does not qualify for sole source procurement because it is available from more than one source, the requesting department will be contacted for instructions on whether to seek competitive bids for the commodity, service or equipment or to delete the requisition.

5. Upon determination by the UAMS Director of Procurement Services that the commodity, service or equipment can be procured by sole source, the request will be forwarded to the Assistant Vice-Chancellor of Support Services for institutional review and approval.

6. Upon institutional approval, the request will be returned to the Procurement Services Department and a purchase order will be processed and released to the Vendor.

SOLE SOURCE JUSTIFICATION FORM FOR COMMODITIES/SERVICES

Requisitions (in excess of $5,000) for items that are to be procured from a specific vendor, where substitutes to the vendor or brand are unacceptable, must be accompanied by a written justification explaining in detail the circumstances that make substitutes unsuitable. The Department Chair, Director, Business Administrator, or Principle Investigator must sign the justification. The Assistant Vice-Chancellor for Support Services or designee determines whether the justification is appropriate. Factual statements that will pass an internal-, federal-, and/or legislative-audit must support justifications. It is the relevant functional features of a product that make it sole source.

This form must be submitted at the time the purchase requisition is entered into SAP when sole source approval is requested for equipment, commodities, material, supplies and services exceeding $5,000.

Please check the appropriate category below and furnish explanation. (NOTE: The explanation of need “MUST” address the critical importance of the unique feature(s) or characteristic(s) as it applied to its intended use in your operation). Attach sheets if necessary.

Complete Section I if the product/service is first-time procurement. Complete Section II if the product/service sole source justification includes on-going research, teaching, or administrative requirements.


SECTION I

Explanation of Need: Identify and explain the need for the unique feature(s) or characteristics(s) applications and circumstances that apply to the specified goods or service

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

Reason(s) Why Competing Products are not Acceptable: Provide a brief statement in reference to the identification of other sources that have been reviewed. Include the product name, model number, manufacturer and price quote (if available) of the unacceptable product(s) that have been investigated. State the reason why each product investigated will not meet the needs for its intended use in your operation.

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

Specific Impact on Department: Provide a statement regarding the specific impact on the Department if the goods or services are procured from another source.

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

SECTION II

SOLE SOURCE FOR EQUIPMENT, SOFTWARE, REPAIR OR COMPATIBILITY:

1) The requested product(s) is an integral equipment repair part, accessory or is
equipment that must be compatible with existing equipment or fixtures.
Existing equipment/fixtures:

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

If applicable:
Manufacturer/Model Number: ___________________________________
Age/Current Value: ___________________________________________

2) The requested product/service/software is essential in maintaining research, teaching or patient care continuity, or to remain in compliance with established standards (Check all that apply).

_____ Requested product/service/software is being used in continuing research experiments, teaching and/or patient care projects.

_____ Other investigators have used the product/service/software in similar
research, teaching and/or patient care projects for comparability results.

_____ I have standardized the requested product/service/software and use of
an alternate brand/model would require considerable time and funding to
evaluate.

_____ The requested product/service/software is one that I (or my staff)
have specialized training and/or extensive experience. Retraining would incur substantial cost in money and/or time.

_____ The product is an upgrade to capital- or non-capital equipment/software.

If applicable, provide complete details on any program considerations, which make the use of sole source criteria critical to the successful operation of the agency task.
________________________________________________________________________


I certify that the above statements are true and correct, and that no other material fact or consideration offered has influenced this recommendation for a sole source or proprietary procurement.

Submitted by: _____________________________ Title__________________________

Signature: ______________________________________________________________

Department: _______________________________ Date: _________________________

Agency Purchasing Official: ________________________________________________

Assistant Vice Chancellor for Support Services: _________________________________

Vendor: ________________________________________________________________

Total Cost: ___________________________