Sole Source and Emergency Purchases Sole Source Purchase
- Slides: 8
Sole Source and Emergency Purchases
Sole Source Purchase • A purchase of products or services that are ONLY available from one source. – Not a preferred vendor or source – the only source. • Justification is required for purchases greater than $15, 000 The specified product or service must be available for purchase through only one single vendor and does not permit an equivalent to be supplied. In today’s robust marketplace, it is unusual for only one product or one vendor to be capable of addressing an agency’s business needs. Because Texas procurement law promotes the use of competitive bidding for purchases, proprietary purchases are subject to enhanced scrutiny.
Sole Source Justification/Approval Form – – Enter Requisition Number Line 1 enter total price (including freight) Line 2 enter supplier name, manufacturer, and model number Line 3 enter description of items or service and their purpose(s) • provide a statement regarding the business need and planned use
Sole Source Justification/Approval Form – Line 4 select the appropriate reason(s)
Sole Source Justification/Approval Form – Line 5 explain the uniqueness of the product or service – Line 6 enter all vendors contacted and why they cannot provide product or service. Be thorough.
Sole Source Justification/Approval Form – Form must be signed by Account Approver-by signing you are certifying the information is true and accurate
Emergency Purchases • An emergency is where financial or operational damage - or the risk of damage - will occur if needs are not satisfied immediately. • Not based on dollar amount • These are not “rush” purchases Emergencies occur as the result of unforeseeable circumstances and may require an immediate response to avert an actual or potential public threat or to avoid undue additional cost to the state. Emergency purchases of goods or services should not exceed the scope or duration of the emergency. An example of a emergency purchase would be if a pipe burst or there was an AC outage in August.
Justification for Emergency Purchase 1. Explain the emergency and how it happened 2. Explain the facts and risks that will occur if the purchase isn’t made immediately 3. Explain why the situation wasn’t anticipated 4. Explain how and why you selected the vendor
