B-5 Non-Competitive Negotiations for Single/Sole Source Purchases

I. Purpose

The Commonwealth of Kentucky Model Procurement Code, Kentucky Revised Statutes (KRS) 45A.100, requires that state institutions of higher education solicit competitive bids for purchases of $100,000 or more. Personal Services Contracts (PSCs) of more than $10,000 require competitive bids. For procedures for personal services exceeding $10,000, see BPM B-4-2. A single/sole source purchase is an exception to the competitive bidding process. The purpose of this policy is to provide guidance and direction for single/sole source purchases.  

II. Policy

UK’s Procurement Services or authorized delegates solicit competitive bids or proposals for all purchases over $100,000 following the KRS 45A.100. PSCs of more than $10,000 also require competitive bids or proposals. Exceptions to these requirements, including for single/sole source purchases, must be justified in written form and approved by the UK Chief Procurement Officer. Examples of possible justifications for single/sole source purchases could include a need for equipment for which there is no comparable competitive product or a replacement part for which there is no available substitute.  

The University, its affiliated corporations and their agents can be held liable for contracts or Purchase Orders issued through the single/sole source procedure if the decision is based on false or incomplete information. The requesting area must fully substantiate all such requests. 

III. Procedures

1. The responsible individual or department requesting the single or sole source shall complete the Single/Sole Source Justification Form and submit it to UK Procurement Services or its authorized delegates prior to the purchase. No purchase shall be made until the transaction is reviewed and approved by the UK Chief Procurement Officer. 
2. The requesting area must be able to document a thorough and equitable evaluation of alternatives. Special or unique features may be used as a consideration; however, price may not be the only basis for a single/sole source justification.