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Section 18: Exceptions to Procurement Requirements

USHE R571.1 - Sole Source Procurement: "Sole Source Procurement is not permissible unless a requirement is available from only 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. The determination as to whether a procurement shall be made as a sole source shall be made by the ‘Director of Purchasing and Contract Services’, or their designee.

In cases of reasonable doubt, competition should be solicited. The following are examples of circumstances which could necessitate sole source procurement:

o   where the compatibility of equipment, accessories, or replacement parts is the paramount consideration;

o   where a sole supplier’s item is needed for trial use or testing;

o   where a sole supplier’s item is to be procured for resale;

o   where public utility services are to be procured."

(1) Utah State University may award a contract for a procurement item without competition if the Vice President for Business and Finance or Director of Purchasing and Contract Services, determines in writing that:

(A) there is only one source for the procurement item; or

(B) the award to a specific supplier, service provider, or contractor is a condition of a donation that will fund the full cost of the supply, service, or construction item.

(2) Circumstances under which there is only one source for a procurement item may include:

(A) where the most important consideration in obtaining a procurement item is the compatibility of equipment, technology, software, accessories, replacement parts, or service;

(B) where a procurement item is needed for trial use or testing;

(C) where transitional costs are unreasonable or cost prohibitive; or

(D) procurement of public utility services.

(3) Utah State University requires the publication of notice for a sole source procurement that, if the cost of the procurement exceeds $50,000, Utah State University may extend a contract for a reasonable period of time without engaging in a standard procurement process, if:

(A) the award of a new contract for the procurement item is delayed due to a protest or appeal;

(B) the standard procurement process is delayed due to unintentional error;

(C) changes in industry standards require significant changes to specifications for the procurement item;

(D) the extension is necessary to prevent the loss of federal funds;

(E) the extension is necessary to address a circumstance where the appropriation of state or federal funds has been delayed; or

(F) the extension covers the period of time during which contract negotiations with a new provider are being conducted.

(1) Notwithstanding any other provision of this chapter, the Vice President for Business and Finance or Director of Purchasing and Contract Services or designee may authorize an emergency procurement without using a standard procurement process when an emergency condition exists. 

(2) A procurement officer who authorizes an emergency procurement shall:

(A) make the authorization in writing, stating the emergency condition upon which the emergency procurement is made; and

(B) ensure that the procurement is made with as much competition as reasonably practicable while avoiding harm, or a risk of harm, to the public health, safety, welfare, or property.

(1) Utah State University Purchasing and Contract Services may consider the purchase of goods and services as provided in State Code 63G-6A Sections 804 and 805.