PURCHASING 101

PURCHASING 1011Additional information and notes are available about each slide. The notes are not available when viewing the slide show. The notes are available in Normal view underneath the slide. See below. This is where you will find additional information about the slide2Remember to: Encourage Fair and Open CompetitionPurchase Best Value Goods and Services Obey the Law Act Only in the Public InterestWhen Making Purchases for the State3SectionsFirst Steps in PurchasingSmall Purchase Rule($1,000 or less)Purchases between $1,001 - $5,000Purchases over $5,000 Sole Source PurchasesEthics & Penalties for Illegal Activities

The purpose of this presentation is to make sure that we understand the right way to purchase for the State of Utah in other words, the way that will keep us out of trouble. No one wants to have their names in the newspaper unless it is an award or a commendation.

I am going to use the word AUDITOR several times in the presentation. I used to call it the seven-letter-dirty word, but recently I came to the conclusion that auditors are people just like us. They are trying to do their jobs that being making sure the States money is protected from fraud. When they find a problem in the course of their research, they have to make sure that fraud is not the reason. 4SECTION 1 First Steps in Purchasing5Flow chart can be downloaded from purchasing.utah.gov home page. Click Purchasing Forms on the right and then on Purchasing Flow Chart under the heading Agency Contract Information

This is the Purchasing Flow Chart. We will be discussing the first three items in this section (Section 1: First Steps in Purchasing)6First Steps: Agency ContractsDoes your agency have a current agency contract? Purchase directly from the contractYesNoWhen you need to purchase a goods or service, first check to see if you agency has a current agency contract with the goods or services that you need. If you find a contract, then the goods or service directly from the contract.

7State Fleet OperationsUtah Correctional IndustriesState Mail and DistributionDepartment of Technology ServicesState Print ServicesFirst Steps: Mandatory Use ProvidersMandatory Use ProvidersIs the item/service available from another state agency?YesNoExecutive Branch Agencies are required by law to use the providers in the box on the right when the providers offer the products/services that meet agency requirements Fleet: The Division of Fleet Operations is charged with handling State Vehicle acquisition, repair, preventive maintenance, and fueling for those vehicles. They also offer a daily vehicle rental option for state employees needing to complete official state business.

Utah Correctional Industries (UCI): Clothing & uniforms, Data Entry, Document Scanning, Furniture, Metal Chairs, Micrographics, Signs, Printing, Asbestos Abatement, Beverage Processing, Panel Reconfiguration

State Mail: Provides mail preparation and distribution. Services include intelligent inserting, automated inserting, folding, tabbing, address printing, presorting and mail design.

DTS: Executive branch agencies are required by law to go through DTS for any technology purchases. The Office of Education is exempt from this requirement

State Print Services: manages essential document production services for state government. Digital Copier Service: offers walkup copier management to agencies statewide. State Copy Center: provides high-quality, production digital printing and related publishing services. The print center provides printing-on-demand in the form of high volume black & white or color impressions. Additionally, the center is equipped with a variety of binding and finishing services.8Executive branch procurements units are required to use State Cooperative Contracts when the contract offers products/services that meet agency requirements.First Step: State Cooperative ContractIs the item/ service available from a State Cooperative Contract?YesNo"Executive branch procurement unit" means each department, division, office, bureau, agency, or other organization within the state executive branch, including the division and the attorney general's office. [Utah Code 63G-6a-107 (7)]

The definition does not limit it to just offices that procure in the name of the division. Why? Because every department, division, office, bureau, agency, or other organization within the state executive branch make purchases.

9State Cooperative Contract: ExceptionUtah Procurement Code 63G-6a-408 (4)(4) Except as provided in Subsection (5), an executive branch procurement unit may not obtain a procurement item through a small purchase standard procurement process if the procurement item may be obtained through a state cooperative contract or a contract awarded by the chief procurement officer under Subsection 63G-6a-2105(1).

The law states that items available on a state cooperative contract MUST be obtained from the state cooperative contract. 10State Cooperative Contract: ExceptionUtah Procurement Code 63G-6a-408(5) Subsection (4) does not apply if:(a) the procurement item is obtained for an unanticipated, urgent or unanticipated, emergency condition, including:(i) an item needed to avoid stopping a public construction project;(ii) an immediate repair to a facility or equipment; or(iii) another emergency conditionSubsection 4 was on the previous slide. It stated that executive branch agencies HAVE to buy from State Cooperative Contracts if items or services are available.

This section allows for an exception to buying from those contracts when there is an UNANCITIPATED URGENT or UNANTICIPATED EMERGENCY condition which requires a purchase. It then lists some examples.

Keep in mind, these are unanticipated. Procurements made outside of a state cooperative contract using this provision should be the rare exception not a frequently used excuse.

11State Cooperative Contract: ExceptionUtah Procurement Code 63G-6a-408 (5)(5)(b) the chief procurement officer or the head of a procurement unit that is an executive branch procurement unit with independent procurement authority:(i) determines in writing that it is in the best interest of the procurement unit to obtain an individual procurement item outside of the state contract, comparing:The exception to obtain a procurement item through another procurement method if the procurement item may be obtained through a state cooperative contract can only come from a written document signed by the CHIEF PROCUREMENT OFFICER (Kent Beers) in order for it to be valid.

12State Cooperative Contract: ExceptionUtah Procurement Code 63G-6a-408 (5) the contract terms and conditions . . . the maintenance and service . . . the warranties . . . the quality . . . the cost . . .. . . applicable to the procurement item under the state contract with the contract terms and conditions applicable to the procurement item if the procurement item is obtained outside of the state contract;The written determination to buy outside of the state contracts must include proof that the good or services has terms & conditions, maintenance and service, warranties, quality, and cost that are equal to or better than those items on the state contract. 13State Cooperative ContractUtah Procurement Code 63G-6a-408 (5)(ii) for a procurement item that, if defective in its manufacture, installation, or performance, may result in serious physical injury, death, or substantial property damage, determines in writing that the terms and conditions, relating to liability for injury, death, or property damage, available from the source other than the contractor who holds the state contract, are similar to, or better than, the terms and conditions available under the state contract; and(iii) grants an exception, in writing, to the requirement described in Subsection (4).If the item could cause serious physical injury, death, or substantial property damage should something go wrong, then the written determination must also the conditions covering liability for those items are equal to or better than the state contract.

14State Cooperative ContractReview of 63G-6a-408 (5)(5)(b) the chief procurement officer. . .determines in writing that it is in the best interest of the procurement unitdetermines in writing that the terms and conditions, relating to liability for injury, death, or property damage, . . . are similar to, or better than, the terms and conditions available under the state contract(iii) grants an exception, in writing, to the requirement described in Subsection (4).An exception for executive branch agencies to purchasing from state cooperative contracts MUST be written/signed by the CHIEF PROCUREMENT OFFICER, Kent Beers.

15purchasing.utah.gov

How to find an item on a state cooperative contract. 16

Any of the above fields are searchable on the webpage. It is highly recommend that you only search one field at a time.

If you cant find a contract using the first three fields and if you know which State Purchasing Agent is responsible for the commodity, use the Select an agent from list field. Choose the agent and look at just their contracts. 17

To see a summary of the contract, click View in the contract summary column for the contract that you want to use. 18

This slide displays the top of the first page of the contract summary for the Staples contract. Note the contact name for the vendor and the State Purchasing agent. The contract summary page contains the information agencies need to make a purchase.

19Because State Cooperative Contracts were created after a competitive process, purchases made from the contracts are NOT subject to the small purchase rule in the next section. State Cooperative Contracts20SECTION 2 Small Purchase Rule(No Bidding Required)21

Having discussed the top three steps on the flow chart, lets move on to the bottom portion.22Is the total purchase more than $1,000 with only one possible vendor?The agency must complete a sole source request and submit it with a quote from the vendor to State Purchasing. A sole source for a PO must also have an RQS number. Sole Source YesDoes the individual item(s) cost less than $1,000?NoYesAre the individual item(s) more than $1,000 but less than $5,000 AND the total purchase will cost less than $5,000?NoYesIs the total purchase more than $5,000 with multiple vendors available?These are small purchases. The agency may select the best source without seeking competitive quotes. The complete procurement must total no more than $5,000 with each item in the procurement costing no more than $1,000. When using this process, the agency may not spend more than $50,000 in a fiscal year with an individual vendor. (UCA 63G-6a-408)The agency shall obtain competitive quotes and purchase the item/service from supplier offering the lowest quote meeting specifications. If all known vendors have been contacted and only one vendor offers a quote, the purchase is a sole source proceed to the box below. The agency shall enter an RQS (results in a purchase order) or an RQM (results in an agency contract). The agency does not collect quotes. Quotes/bids will be obtained by the Division of Purchasing.Zoomed in on bottom portion23Small Purchase RuleItems under $1,000 do not need to be competitively bidSmall Purchase Rule appliesYesNoDoes the individual item(s) cost $1,000 or less? 24Individual procurement threshold($1,000)Single procurement aggregate threshold ($5,000)Annual cumulative threshold ($50,000)

Small Purchase ThresholdsReminder: Items bought through agency contracts or state cooperative contracts do not apply to the small purchase threshold because the contracts were established after a competitive solicitation. 25Individual Procurement Threshold: The maximum amount that can be spent on one item under the small purchase rule

The threshold, or limit, is $1,000 for one itemSmall Purchase ThresholdsSingle Procurement Aggregate Threshold: The maximum amount that can be spent at one time (a single procurement) with all individual items in the procurement being under $1,000.

The threshold, or limit, is $5,000 for the total purchase. You can buy many items under $1,000 in the same purchase as long as the total does not exceed $5,000. Do not split a purchase in order to stay under the limit.

Small Purchase ThresholdsAnnual Cumulative Threshold the maximum amount that an agency can spend with a single vendor in one year using the small purchase rules.

When using the small purchase rules, the limit is $50,000 for a single vendor in a year.Small Purchase ThresholdsReminder: Items bought through agency contracts or state cooperative contracts are NOT subject to the small purchase thresholds because the contracts were established after a competitive bid. Small Purchase ThresholdsIf a threshold will be exceeded, competition is required to obtain the procurement item. Small Purchase RuleIndividual procurement thresholdSingle procurement aggregate thresholdAnnual cumulative threshold ($1,000)($5,000)($50,000)If a procurement item fits within the small purchase rules, the agency DOES NOT HAVE TO do a competitive bid. They may purchase from a convenient source. HOWEVER, with your budgets in mind, dont buy from an expensive source! If the price seems high, look somewhere else. 30How to Purchase Real Items1st Agency Contract

3rd State Cooperative Contract4th Small Purchase Rules (Watch the Thresholds)2nd Mandatory Use ProvidersRemember the Purchasing flow chart and the steps we have to follow to purchase an item.

1st check your agency contracts. 2nd Does a mandatory use provider have the item available. 3rd Is it on a State Cooperative Contracts check the database. 4th Determine if the $ amount of the item(s) allows you to purchase using the Small Purchase Rules.

31SECTION 3 Purchasing Items $1,001- $5,000(Bidding Required)Once you do an informal bid/quote, the small purchase thresholds do not apply (meaning the $1,000 and $5,000 and $50,000 thresholds do not apply once quotes are requested.

Items costing $1,000.01 - $5,000 must be purchased using an informal phone/email quote. Agencies may purchase these items so long as the total of the purchase is not over $5,000. If it is over $5,000, State Purchasing will handle the purchase on your agencies behalf.

32Obtain competitive quotes by phone/emailTwo quotes required but three quotes preferred.Keep all documentation for 5 yearsName of all vendors Copy of quoteDate of quoteAll other paperworkYesNoDoes the individual item(s) cost between $1,001 and $5,000?Purchasing Items$1,001 - $5,000 (Bidding Required)State Purchasing highly recommends that any phone quote be followed up in writing by an email quote. 33Telephone/Email Quote

Click above for document

The Telephone Quotation Sheet is located online at purchasing.utah.gov look under the DAS SERVICES heading for Purchasing Forms. Then click Phone Quotation Worksheet.

Read and understand the General Information document that comes with the Telephone Quotation Sheet.34DO NOT disclose any information of other quotes obtained including price, delivery, brand, etc.

Telephone/Email QuoteThe purchase must be made from the vendor providing the lowest responsive and responsible quote. 35Do NOT tell the vendor they are the winner until all internal processes are completeAll agency procedures MUST be complete before awarding bidYesNoDoes the individual item(s) cost between $1,001 and $5,000?Purchasing Items$1,001 - $5,000 (Bidding Required)36SECTION 4 Purchasing Items over $5,000(State Purchasing)37Follow internal procedures Enter RQS (results in a purchase order) or RQM (results in an agency contract) in FINETInclude description & approximate cost

YesIs the total purchase over $5,000 with multiple vendors?Purchasing Items over $5,00038Purchases over $5,000, must be sent to the Division of Purchasing for processing. Work with your agencys purchasing and finance offices to follow the correct process. Purchasing Items over $5,000By State Purchasing39Send detailed specifications to State PurchasingQuantity requiredDate required (if applicable)Delivery locationOther pertinent information Can include a list of recommended suppliers with vendor contact information, e-mail address & phone numberPurchasing Items over $5,000By State Purchasing40Just a reminder: RQS can become a PO or a Contract RQM can only become a ContractPurchasing Items over $5,000By State PurchasingPut in FINET. Goes through approval process within agency.Purchasing cannot move forward without a RQS or RQM41Process for Procurement:

Informal Solicitation Less than $50,000 Formal SolicitationPosted for Public Notice on BidSyncItems greater than $50,000 must be postedAt discretion of State Purchasing agent, items less than $50,000 can be posted

Purchasing Items over $5,000By State PurchasingPut in FINET. Goes through approval process within DNR.Purchasing cannot move forward without a RQS or RQM42Common Procurement Methods for Formal SolicitationRequest for Information (RFI)Request for Quotation (RFQ)Invitation for Bid (IFB)Multi-Step Bid (MSB)Request for Proposal (RFP)Sole Source

The State Purchasing Agent will work with you to determine which method is best for your requirements.Templates for Multi-Step Bid, RFP, and Sole Source are available at: http://purchasing.utah.gov/2012-08-30-20-32-26.htmlPut in FINET. Goes through approval process within DNR.Purchasing cannot move forward without a RQS or RQM43

Make sure specifications are written to obtain adequate competition Never let vendors write specificationsAllow sufficient time for all internal agency procedures & State Purchasing proceduresIf you dont know please askKeep good documentation on your purchases Your ResponsibilityLack of planning on your part may make an emergency for you, but that does not mean that State Purchasing can by-pass the law or the rules to shorten the process. 45Sole Source Procurement46All known vendors contacted-only one bidIf over $1,000, must be approved by the Division of Purchasing. A quote from the vendor MUST be submitted with the sole source request First Steps: Sole SourceYesIs the total purchase over $1,001 with only one vendor?The current sole source request paperwork is located on purchasing.utah.gov Click Purchasing Forms under the DAS SERVICES header. The paperwork is located under the PURCHASING FORMS AND INFORMATION header. Only use the current sole source request paperwork.47Sole source procurement shall be used only if a requirement is reasonably available from a single supplier. . . . Sole Source ProcurementR33-3-401 Conditions for use of sole source procurement48Sole Source does NOT mean:BEST sourcePREFERRED sourceMOST CONVENIENT sourceFAVORITE sourceCHEAPEST source

Sole Source ProcurementMake sure it really is a sole source! Justify the sole source in writing on the sole source request form. 49All sole source purchases over $1,000 must go to State Purchasing.Sole source requests estimated to be $50,000 and above must be posted for a minimum of 7 calendar days for public comment.Sole Source RequestsState Purchasing agents have the prerogative to post any sole source, even those under $50,000, if they feel it is in the best interest of the State. 50

Sole Source Request Form

Version10/23/2013Always check purchasing.utah.gov for the most up-to-date form51A signed sole source Is NOT the same as a contractOnce the sole source has been signed by State Purchasing, a contract MUST be created by the agencyThe contract must be signed by all parties including State Purchasing before any goods or services can be obtainedSole Source Requests52Ethics & Penalties for Illegal Activities53NoticeThe following information discusses matters of law. You are strongly advised to consult with your attorney regarding any and all legal issues presented herein.

The Division of Purchasing and General Services is not authorized to give legal advice.

54Dividing Procurements

Do NOT divide a purchase to stay under the thresholdsSmall Purchase RuleIndividual procurement thresholdSingle procurement aggregate thresholdAnnual cumulative threshold ($1,000)($5,000)($50,000)56(8) It is unlawful for a person to intentionally or knowingly divide a procurement into one or more smaller procurements with the intent to make a procurement:(a) qualify as a small purchase, if, before dividing the procurement, it would not have qualified as a small purchase; or(b) meet a threshold established by rule made by the applicable rulemaking authority, if, before dividing the procurement, it would not have met the threshold.

63G-6a-2305Penalties for Artificially Dividing a Purchases57(9) A division of a procurement that is prohibited under Subsection (8) includes doing any of the following with the intent or knowledge described in Subsection (8):(a) making two or more separate purchases;(b) dividing an invoice or purchase order into two or more invoices or purchase orders; or(c) making smaller purchases over a period of time.(10) A person who violates Subsection (8) is subject to the criminal penalties described in Section 63G-6a-2305.63G-6a-2305Penalties for Artificially Dividing a Purchases5863G-6a-2305Penalties for Artificially Dividing a PurchasesDividing a procurement in order to remain under the small procurement threshold is fraud and is illegal. If it is discovered that a person has intentionally or knowingly divided procurements, he or she can be charged as follows:Less than $100,000 = class B misdemeanorBetween $100,000 and $250,000 = class A misdemeanorBetween $250,000 and $1,000,000 = third degree felonyOver $1,000,000 = second degree felonyShall be dismissed59Gratuities, Kickbacks, Unlawful Use of Position or Influence

Be Independent Do Not Accept Gifts from VendorsDo Not Socialize with VendorsDo Not Play Favorites Maintain Confidentiality Ethical Actions61Follow the Law Act Only in the Public InterestRemember - You are a Trustee of the Publics Money Ethical Actions62(1) (c) "Gratuity" means anything of value, including:(i) money;(ii) a loan at an interest rate below the market rate or with terms that are more advantageous to the person receiving the loan than terms offered generally on the market;(iii) an award;(iv) employment;(v) admission to an event;(vi) a meal;(vii) lodging;(viii) travel; or(ix) entertainment for which a charge is normally made.63G-6a-2304.5 Gratuities, Kickbacks, Unlawful Use of Position or Influence63(1) (g) "Kickback" means a gratuity given in exchange for favorable treatment in a pending procurement or the administration of a contract.(2) Nothing in this section exempts a person subject to the provisions of Title 67, Chapter 16, Utah Public Officers' and Employees Ethics Act, from complying with the provisions of the Utah Public Officers' and Employees Ethics Act.63G-6a-2304.5 Gratuities, Kickbacks, Unlawful Use of Position or Influence64(3) (a) Except as provided in Subsection (6) or (7), it is unlawful for an interested person to give, offer, or promise to give a gratuity to:(i) a procurement participant; oran individual who the person knows is a family member of a procurement participant.Except as provided in Subsection (6) or (7), it is unlawful for a procurement participant to ask, receive, offer to receive, accept, or ask for a promise to receive a gratuity from an interested person.63G-6a-2304.5 Gratuities, Kickbacks, Unlawful Use of Position or Influence65(8) A person who violates this section is guilty of:(a) a felony of the second degree if the total value of the gratuity or kickback is $1,000 or more;(b) a felony of the third degree if the total value of the gratuity or kickback is $250 or more, but less then $1,000;(c) a class A misdemeanor if the total value of the gratuity or kickback is $100 or more, but less than $250; or(d) a class B misdemeanor if the total value of the gratuity or kickback is less than $100.63G-6a-2304.5 Gratuities, Kickbacks, Unlawful Use of Position or Influence66. . .in addition to any penalty contained in any other provision of law, a public officer or public employee who intentionally violates a provision of Section 63G-6a-2304.5, or Section 63G-6a-2305 shall be dismissed from employment or removed from office. Except as provided in Subsection (4), a public officer or public employee who intentionally violates a provision of this chapter is subject to disciplinary action, up to and including dismissal from employment or dismissal from office.63G-6a-2306Penalties67Gratuities and Kickbacks PresentationCronyism: an anticompetitive practice that may violate federal antitrust law. Cronyism is a form of favoritism where contracts (or purchase orders) are awarded on the basis of friendships, associations or political connections instead of fair and open competition. (8) "Contract" means an agreement for the procurement or disposal of a procurement item.

68For further understanding, please see the training entitled Gratuities, Kickbacks, & Undue InfluencePurchasing.utah.govClick Agency TrainingClick Gratuities, Kickbacks, & Undue InfluenceGratuities and Kickbacks Presentation69STATE OF UTAH - DEPARTMENT OF ADMINISTRATIVE SERVICES

Division of Purchasing & General Services

3150 State Office Building, Capitol Hill, Salt Lake City Utah 84114-1061

Phone: 801-538-3026 Fax: 801-538-3882 www.purchasing.utah.govSOLE SOURCE REQUEST

Requests missing information will be rejected and returned to requestor for completion.Complete each section and provide as much information as needed to fully respond. Please click on the grey fields to insert your information. Use your tab key to advance to the next field. Please complete all fields below.

Sole Source Procurement is appropriate only if a purchase requirement is reasonably available from a single supplier and if it otherwise qualifies under the attached Utah Administrative Code R33-3-401.

ALL SOLE SOURCE REQUESTS OVER $1,000 MUST BE PRE-APPROVED BY STATE PURCHASING.

It is anticipated the procurement will result in a: (Check one and fill in the appropriate fields for an agency contract or the RQS number for a purchase order)RESULTACTION

Agency Contract

1. An RQM in Finet is NOT required.

2. Insert requested initial term of contract: (and renewal options): 3. Approximate Start Date: (cannot be prior to the date the sole source form is signed)4. A Quote from the supplier is required.

5. Email this completed form along with a copy of the quotation from the supplier to purchasingsolesource@utah.gov prior to contract negotiations.

Purchase Order1. An RQS in Finet is required.2. Insert the RQS Number: 3. A Quote from the supplier is required.

4. Email this completed form along with a copy of the quotation from the supplier to the appropriate State Purchasing Agent.

Department Requesting Authorization:

Division:

Contact Person and Title:

E-mail Address:

Telephone Number:

Description of Product / Service to be Purchased:

Total Estimated Cost (including all renewal periods):

Freight Cost (F.O.B. Destination, Freight Prepaid):$0.00

Supplier Name:

Contact Person:

E-mail Address:

Telephone Number:

Fax Number:

Ordering Address including Zip Code:

Remittance Address:

FINET Vendor Number (if available):

All items in the above section are required with the exception of Freight Cost

Complete the following if no Finet number exists.

Federal Tax ID# (TIN): (9 Digits)

Type of Supplier (check one):Sole proprietorship/ individual Non-Profit CorporationFor-Profit Corporation

PartnershipGovernment AgencyOther (Please, explain)

Explain in detail why the service or product is only available from a single supplier.

NOTE: The explanation above is required for ALL SOLE SOURCES UNDER THE RULE. Also, check all that apply below:Compatibility of equipment, accessories, replacement parts, or service, including professional services, is the paramount consideration (please complete sections A and B)

A sole suppliers item is needed for trial use or testing (please complete section C)

Procurement of items for resale (please complete section A)

Procurement of public utility services (please complete section A)

Any other justification under Rule R33-3-401 (please complete section A)

Section A. GENERAL INFORMATION

1.What is unique about this product/service to justify a sole source? Refer to attached Utah Administrative Code R33-3-401.

2.Could the product/service be reasonably modified to allow for competition?

3.Explain the market research performed to make the sole source recommendation?

4.List the names of suppliers contacted, contact person and a summary of their response.

5.Complete disclosure must be included with this request if the requestor has any personal, financial or fiduciary relationship with the recommended supplier. (Please Attach)

Section B. COMPATIBILITY OF EQUIPMENT/SERVICE

1.Describe the existing equipment that this purchase must be compatible with; original purchase price and date of purchase.

2.What is the remaining life expectancy of the existing equipment?

3.What procurement method was used to purchase the existing equipment? (IFB, RFP, Sole Source). Provide the solicitation number, RQS number, or sole source number:a

Section C. TRIAL OR TESTING1.Why is the trial use or testing necessary?

2.What is the anticipated end result of the trial or test?

3.Do any other suppliers provide this product or service?

a.If yes, list the company names:

b.Will their products be tested?

4.What criteria were used to choose this supplier?

5.What is the scope/size and location of test or trial?

When submitted by email, type requestors name on the signature line. The requester must have signature authority for this purchase. The email will constitute the electronic signature.

Requested by:Approved:

Agency SignatureDateKent D. Beers, DirectorDate

Title:Division of Purchasing

Approved As To Form:By: Asst. Attorney General

Date:08/29/2012For State Purchasing Use OnlyAgent:

Sole Source Notice#:

Commodity Code:

# of Suppliers Sent To:

Additional Research:

Summary of Comments Received & Determination:

Recommendation:

Terms & Conditions:

Standard Professional Svs IT for DTS only

Utah Administrative Code R33-3-401 Conditions for Use of Sole Source Procurement.Sole source procurement shall be used only if a requirement is reasonably available from a single supplier. A requirement for a particular proprietary item does not justify a sole source procurement if there is more than one potential bidder or offeror for that item.

Examples of circumstances which could necessitate sole source procurement are:

(1) where the compatibility of equipment, accessories, replacement parts, or service is the paramount consideration;

(2) where a sole supplier's item is needed for trial use or testing;

(3) procurement of items for resale;

(4) procurement of public utility services.

The determination as to whether a procurement shall be made as a sole source shall be made by the procurement officer. Each request shall be submitted in writing by the using agency. The officer may specify the application of the determination and its duration. In cases of reasonable doubt, competition should be solicited. Any request by a using agency that a procurement be restricted to one potential contractor shall be accompanied by an explanation as to why no other will be suitable or acceptable to meet the need.

R33-3-402 Negotiation in Sole Source Procurement.The procurement officer shall conduct negotiations, as appropriate, as to price, delivery, and terms.

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