B-5 Non-Competitive Negotiations for Single/Sole Source Purchases
I. Purpose
The Commonwealth of Kentucky Model Procurement Code, 45A-100, requires that competitive bids be solicited for purchases of $100,000 or more. Personal services contracts of more than $10,000 require competitive bids. For procedures for personal services exceeding $10,000, see BPM B-4-2. The purpose of this policy is to provide guidance and direction for single/sole source purchases. A single/sole source purchase is an exception to the competitive bidding process.
II. Policy
The University of Kentucky’s Procurement Services solicits competitive bids for all purchases over $100,000 following the Kentucky Revised Statute 45A-100. Personal services contracts of more than $10,000 require competitive bids. Exceptions to this must be justified in written form. Examples of possible single/sole source purchases could include equipment for which there is no comparable competitive product or a replacement part for which there is no available substitute. Justifications must be approved by the Chief Procurement Officer.
Both the University and its 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. All such requests must be fully substantiated.
III. Procedures
- The requisitioner/shopper 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.
- The responsible individual or department requesting the single or sole source shall complete the Single/Sole Source Justification Form and submit it to Procurement Services prior to the purchase.