Part 8: Exceptions to Procurement Requirements

1. Agenda Item No. 8 Part 8: Exceptions to Procurement Requirements 63G-6a-802 Sole source – award of contract without competition –notice • Use great caution in sole source procurements! • A key definition is “transitional costs” which may be considered when making sole source procurements.

2. Agenda Item No. 8 Part 8: Exceptions to Procurement Requirements • “Transitional costs” mean the costs of changing from an existing provider of, or type of, a procurement item to another provider of, or type of, procurement item. • “Transitional costs” include: • Training costs • Conversion costs • Compatibility costs • System downtime • Disruption of service • Staff time necessary to put the transition into effect • Installation costs, and • Ancillary software, hardware, equipment, or construction costs • “Transitional costs” donot include” • The costs of preparing for or engaging in a procurement process; or • Contract negotiation or contract drafting costs Reference: UCA 63G-6a-802(1)

3. Agenda Item No. 8 Part 8: Exceptions to Procurement RequirementsSole Source Procurement (con’t.) (2) A contract may be awarded for a procurement item without competition if the procurement officer determines in writing that there is only one source. (3) Circumstances for finding there is only source • Where the most important consideration is compatibility of equipment, technology, software, accessories, replacement parts, etc. • Where transitional costs are unreasonable or cost prohibitive • Where a procurement item is needed for trial use or testing • Procurement of public utility services Reference: UCA 63G-6a-802(2) & (3)

4. Agenda Item No. 8 Part 8: Exceptions to Procurement Requirements(con’t.) (4) Notice of sole source procurements require publication, if the procurement cost exceeds $50,000 Reference: UCA 63G-6a-802(4)

5. Agenda Item No. 8 Sole Source Procurement Checklist Example • The Procurement Officer determines in writing that there is only one source for the procurement item (UCA 63G-6a-802(2) and (3)). Reasons could include: • Where the most important consideration in obtaining a procurement item is the compatibility of equipment, technology, software, accessories, replacement parts, or service; • Where a procurement item is needed for trial use or testing; • Where transitional costs are unreasonable or cost prohibitive; or • Procurement of public utility services. • Or, the Procurement Officer determines in writing that 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. Reference: UCA 63G-6a-802(2) &(3)

6. Agenda Item No. 8 Sole Source Procurement Checklist Example (con’t.) • Publish notice of intent to make a sole source procurement on District’s procurement web page at least seven days prior to the procurement, including: • A description of the procurement item(s) • Contact information and other information relating to contesting, or obtaining additional information in relation to, the sole source procurement • The earliest date that District may make the procurement • How to obtain more information related to the sole source procurement Reference: UCA 63G-6a-802(2) &(3)

7. Agenda Item No. 9 Part 8: Exceptions to Procurement Requirements 63G-6a-803 Emergency procurement • The procurement officer or his/her designee may authorize an emergency procurement. • The authorization must be in writing, stating the emergency condition. • The procurement should be made with as much competition as reasonably practicable while avoiding harm, or a risk of harm, to the public health, safety, welfare or property. • The Procurement Code does not define what constitutes an emergency condition. The phrase underlined above is probably the best description.

8. Agenda Item No. 10 Part 8: Exceptions to Procurement Requirements 63G-6a-804 Purchase of prison industry goods • Districts are encouraged (but not required) to purchase goods and services from the prison system. • A public procurement process is not required because the Department of Corrections publishes a catalog of goods and services and the prices for each item.

9. Agenda Item No. 10 Part 8: Exceptions to Procurement Requirements 63G-6a-805 Purchase from community rehabilitation programs • Districts are encouraged (but not required) to purchase goods and services from these. • The goods have to be reasonably competitive and do not require a procurement purchase process, but the goods are identified in a catalog similar to prison goods.