Sole Source Training Objectives

1. Sole Source TrainingState of Utah Procurement Rules, Justification Requirements, and Common Mistakes Related to Sole Sources

2. Sole Source Training Objectives • To identify sections of the State of Utah Procurement Code that outlines Sole Source requirements. • Explain State Purchasing’s process for submission, review, and approval of Sole Sources.

3. Sole Source Training Objectives • Discuss common Sole Source mistakes and provide guidance to help avoid future issues. • Answer any questions or address concerns associated with Sole Sources.

4. What Does the Procurement Code Say About Sole Sources? Section 63G-6a-802 of the State of Utah Procurement Code (Procurement Code) allows award of a contract (or PO) without competition when: • There is only one source for the procurement item; or

5. What Does the Procurement Code Say About Sole Sources? • The award to a specific supplier, service provider or contractor is a condition of donation that will fund the full cost of the supply, service, or construction item.

6. The Procurement Code Specifies Circumstances that Justify a Sole Source Section 63G-6a-802 (3) states: 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;

7. The Procurement Code Specifies Circumstances that Justify a Sole Source • (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.

8. What Does the Procurement Code Say About Public Posting Requirements for Sole Sources? Section 63G-6a-406 of the Procurement Code was revised and now requires a minimum public posting period ofseven (7) consecutive days before approving a Sole Source procurement with a total cost over $50,000.

9. What Does the Procurement Code Say About Public Posting Requirements for Sole Sources? NOTE: A Purchasing Agent has the ability to require the seven (7) consecutive day public posting period for a Sole Source procurement under $50,000 – if the validity of the Sole Source is questionable.

10. What is State Purchasing’s Process for Reviewing, Posting, and Approving Sole Sources? When a Sole Source form is received by State Purchasing, the Purchasing Agent: • (1) Reviews the justification provided and determines whether it meets the Sole Source criteria outlined in the State of Utah Procurement Code; • (2) Conducts additional research to validate the explanation and justification provided;

11. What Does the Procurement Code Say About Public Posting Requirements for Sole Sources? • (3) Prepares the Notice of Proposed Sole Source Procurement document for posting in BidSync and monitors the Sole Source for challenges or requests for additional information during the 7 consecutive day public posting requirement (if applicable).

12. What is State Purchasing’s Process for Reviewing, Posting, and Approving Sole Sources? What if my Sole Source is challenged? If a challenge is received during the Sole Source public posting period, it must be successfully resolved before a Sole Source can be awarded. The Purchasing Agent will facilitate a conference call or email exchange between the challenging supplier and the Sole Source requestor to determine: • Can the supplier meet all the requirements outlined in the Sole Source? • Can the supplier provide the equipment as identified in the specifications?

13. What is State Purchasing’s Process for Reviewing, Posting, and Approving Sole Sources? • If the challenging supplier is able to provide the service/equipment, the Sole Source will be canceled and an IFB or RFP solicitation will be required. • If it is determined that the supplier is unable to provide the service/equipment, a written statement will be documented by the Purchasing Agent and provided to all parties. The supplier must agree that they are unable to provide the procurement item and formally withdraw their challenge before a Sole Source is approved.

14. What is State Purchasing’s Process for Reviewing, Posting, and Approving Sole Sources? • (4) If the Sole Source total dollar amount is under $50,000, the justification is valid, and all required back up documents have been received, the Purchasing Agent may approve the Sole Source request; or

15. What is State Purchasing’s Process for Reviewing, Posting, and Approving Sole Sources? (4) continued… • If the Sole Source total dollar amount exceeds $50,000, has been posted for 7 consecutive days without challenge (or any challenge that was received was successfully resolved), and all required back up documents has been received, the Purchasing Agent will recommend approval and submit to the Chief Procurement Officer (or designee) for final approval.

16. What Additional Documents Are Required for a Sole Source Posting? • Correct Sole Source Form – the most recent Sole Source form can be found on the State Purchasing website under “Buyer” then click “Forms”. The form must be complete and include all required information. Sole Sources submitted on old forms will be returned to the agency for correction. http://purchasing.utah.gov/purchasing/buyer-information/2-purchasing/29-forms.html

17. Contract or PO? • Agency must identify whether the Sole Source will result in an Contract or Purchase Order. • Contracts require identification of initial term and renewal option(s); or • PO’s require the RQS Number to be included.

18. Contact Information • Contact information should include a person who can answer questions concerning the equipment or service requested on the Sole Source form. Including this information helps to reduce communication issues when trying to resolve Sole Source problems. • You could also include contact information for a person responsible for administrative questions.

19. Description and Supplier Information • Ensure you include a detailed description of the product or service. • Total cost must include initial and all renewal costs associated with the purchase. • Include all supplier information required on the form.

20. Justification and Identification of Circumstance(s) • Include a justification that meets one of the circumstances identified in the Procurement Code Section 63G-6a-802 (3). • Check the section(s) A – C that correspond with your Sole Source justification.

21. Justification Information • Sole Sources that include compatibility requirements will be required to complete Sections A. and B.

22. Justification Information • Sole Sources that include trial or testing requirements will be required to complete Section C.

23. Authorizing Signature • Sole Source forms must be signed by someone in the agency with signature authority to authorize a purchase. Sole Source forms that are not signed, will be returned. • State Purchasing will allow electronic signatures or a physical signature.

24. What Additional Documents Are Required for a Sole Source Posting? • A valid quote is required. A quote is considered valid if it was issued from the supplier (on company letterhead) within 30 days of State Purchasing receiving the Sole Source procurement and the quote does not expire before the required 7 consecutive day public posting period (if applicable). An email from a sales person is not a valid quote. Obtaining pricing from a website is not a valid quote.

25. Valid Quote - Example

26. What Additional Documents Are Required for a Sole Source Posting? • A DTS Business Case or DTS Exemption Form. If the equipment or service is IT related and the submitting agency falls under the jurisdiction of the Department of Technology Services (DTS), the Sole Source must include:

27. What Additional Documents Are Required for a Sole Source Posting? • Signed DTS Business Case (submitted per the DTS Business Case Instructions); or • DTS Exemption Form (attached to Sole Source form) All IT related Sole Sources that include a signed DTS Business Case must be submitted to State Purchasing by a DTS Contract Analyst – it will not be accepted directly from the agency.

28. DTS Business Case - Example

29. DTS Exemption Form - Example

30. What Additional Documents Are Required for a Sole Source Posting? • RQS FINET Requisition. If the Sole Source will result in a Purchase Order (PO), an RQSwill be required in FINET and a requisition generated in State Purchasing before posting in BidSync.

31. What Additional Documents Are Required for a Sole Source Posting? • NOTE: Once the RQS information is entered into FINET and all agency approvals have been obtained, an overnight batch process is required before the RQS FINET Requisition (Buyer Worksheet) is generated and printed in State Purchasing. This requisition is State Purchasing’s confirmation that funds have been approved and gives the Purchasing Agent authorization to publically post the Sole Source in BidSync or approve and cut a PO for payment.

32. RQS FINET Requisition - Example

33. Common Sole Source Mistakes • Submitting a Sole Source for a product or service that can be provided by multiple suppliers. Conduct research on your product. Out of state suppliers are considered valid suppliers unless specifically prohibited by a manufacturer (include a brief email/letter confirmation as back up). If there are multiple suppliers but your selected supplier has the lowest price – this is not a sole source, and requires quotes oran IFB solicitation.

34. Common Sole Source Mistakes • Not including the cost of renewal options in the total cost of the Sole Source. The total cost of the Sole Source must reflect all costs associated with the contract. The supplier quote must also reflect all costs associated with the contract and match the total dollar amount listed on the Sole Source Request Form.

35. Common Sole Source Mistakes • Not identifying the contract number when submitting a Sole Source that will result in an amendment to an existing contract. If your Sole Source request will result in a contract amendment to an existing contract, make sure to identify the original contract number and supplier in the Description of Product/Service section on the front page of the sole source form.

36. Common Sole Source Mistakes • Failure to submit the Sole Source form and all required back up documents to purchasingsolesource@utah.gov Sole Sources that will result in an agency contract must be submitted to State Purchasing via the above email for tracking and numbering purposes.

37. Common Sole Source Mistakes • Failure to submit the Sole Source form in WORD format. Purchasing Agents may need to complete a Notice of Proposed Sole Source Procurement and require the ability to copy/paste justification language from the Sole Source document. Retyping a lengthy justification will result in BidSync posting delays.

38. Common Sole Source Mistakes • The supplier’s quote has the words “proprietary” or “confidential” included in the document. Under GRAMA laws, pricing cannot be considered proprietary or confidential. All references to “proprietary” or “confidential” must be removed by the supplier and resubmitted to the agency before sending the Sole Source to State Purchasing.

39. Common Sole Source Mistakes • The supplier’s quote contains (or references) additional supplier terms and conditions. All supplier terms and conditions that will be part of the resulting contract or PO must be reviewed and approved by your assigned AG prior to submission of the Sole Source form to State Purchasing. An email or letter of confirmation from the AG must be attached to any Sole Source quote that contains supplier terms and conditions to confirm the agency AG has reviewed and approved.

40. Common Sole Source Mistakes If a supplier’s quote references terms and conditions yet there are no terms and conditions attached, you will be required to contact the supplier, obtain the terms and conditions, coordinate AG review and approval, and submit to State Purchasing.

41. Common Sole Source Mistakes • The Sole Source clearly has an IT component; however, no DTS Business Case or DTS Exemption Form is attached. DTS has requested State Purchasing to stop Sole Source procurements that are not sent to State Purchasing from DTS or come from an agency and do not include a DTS Exemption Form. Failure to coordinate with DTS on IT Sole Source procurements before submission to State Purchasing will result in significant Sole Source posting and/or approval delays.

42. Common Sole Source Mistakes NOTE: Inclusion of an email from an agency’s DTS IT Director does not constitute a DTS Exemption Form. Contact a DTS Contracts Analyst for more information on IT procurements.

43. Conclusion of Sole Source Training Questions?