No. 31475 (Amendment): R33-3-4. Sole Source Procurement

DAR File No.: 31475
Filed: 05/23/2008, 02:56
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

This amendment provides greater transparency in the procurement process relative to sole source procurements.

Summary of the rule or change:

This amendment provides for notice and a comment period prior to making a sole source procurement.

State statutory or constitutional authorization for this rule:

Sections 63G-6-202 and 63G-6-410

Anticipated cost or savings to:

the state budget:

None--It is not anticipated that this rule will result in an overall positive or negative fiscal impact to the state budget. There is no cost because the additional transparency is accommodated electronically. In fact, the additional transparency may result in savings by identifying potential sources for the product or service. However, it would be impossible to quantify the savings.

local governments:

None--It is not anticipated that this rule will result in an overall positive or negative fiscal impact to local governments budget. There is no cost because the additional transparency is accomplished electronically through an existing system. In fact, the additional transparency may result in savings by identifying potential sources for the product or service. However, it would be impossible to quantify the savings.

small businesses and persons other than businesses:

None--It is not anticipated that this rule will result in an overall positive or negative fiscal impact to small businesses or other persons. There is no cost because the additional transparency is accomplished electronically through an existing system. In fact, the additional transparency may result in savings by identifying potential sources for the product or service. However, it would be impossible to quantify the savings.

Compliance costs for affected persons:

None--There is no cost because the additional transparency is accomplished electronically through an existing system. In fact, the additional transparency may result in savings by identifying potential sources for the product or service. However, it would be impossible to quantify the savings.

Comments by the department head on the fiscal impact the rule may have on businesses:

This rule will not have a financial impact on businesses. Kimberly Hood, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Administrative Services
Purchasing and General Services
Room 3150 STATE OFFICE BLDG
450 N MAIN ST
SALT LAKE CITY UT 84114-1201

Direct questions regarding this rule to:

Douglas Richins at the above address, by phone at 801-538-3143, by FAX at 801-538-3882, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

07/15/2008

This rule may become effective on:

07/22/2008

Authorized by:

Douglas Richins, Director

RULE TEXT

R33. Administrative Services, Purchasing and General Services.

R33-3. Source Selection and Contract Formation.

R33-3-4. Sole Source Procurement.

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.

3-401.5 Notice of Proposed Sole Source Procurement.

Public notice for sole source procurements exceeding $50,000 shall be given by the Procurement Officer as provided in R33-3-104 (2). The notice shall be published at least 5 working days in advance of when responses must be received in order that firms have an adequate opportunity to respond to the notice. The notice shall contain a brief statement of the proposed procurement, the proposed sole source supplier and the sole source justification. The notice shall invite comments regarding the proposed sole source and provide for a closing date for comments. The Procurement Officer shall consider the comments received before proceeding with the Sole Source procurement.

3-402 Negotiation in Sole Source Procurement.

The procurement officer shall conduct negotiations, as appropriate, as to price, delivery, and terms.

3-403 Unsolicited Offers.

(1) Definition. An unsolicited offer is any offer other than one submitted in response to a solicitation.

(2) Processing of Unsolicited Offers. If a purchasing agency that receives an unsolicited offer is not authorized to enter into a contract for the supplies or services offered, the head of the agency shall forward the offer to the procurement officer who has authority with respect to evaluation, acceptance, and rejection of the unsolicited offers.

(3) Conditions for Consideration. To be considered for evaluation an unsolicited offer:

(a) must be sufficiently detailed to allow a judgment to be made concerning the potential utility of the offer to the purchasing agency; and

(b) may be subject to testing under terms and conditions specified by the agency.

 

KEY: government purchasing

Date of Enactment or Last Substantive Amendment: [February 21, 2006]2008

Notice of Continuation: November 23, 2007

Authorizing, and Implemented or Interpreted Law: [63-56]63G-6