A sole source justification is appropriate if only one supplier can provide a needed product or service. This should be a rare occurrence.
When is it Required?
Sole source justification documentation and approvals are required when:
- Only One Supplier can fulfill the request.
- $10K or higher transaction total for federal funded accounts, AND an existing Purchase Agreement is not being used, OR the purchase is not being made in AggieBuy.
- $100K or higher transaction total for non-federal funded accounts, AND an existing Purchase Agreement is not being used, OR the purchase is not being made in AggieBuy.
What Documents are Required?
When the conditions above are met, the following documentation is required, using the forms available on the Procurement Forms webpage:
- The Sole Source Justification section of the Source Selection & Price Reasonableness Justification and Approval Form must be completed.
- In addition, the Individual Disclosure Statement must be completed. Each person involved in the recommendation for Sole Sourcing must complete the disclosure form. Both forms should be electronically attached to the KFS Requisition (REQS) document.
What to Include on the Justification and Approval Form:
The sole source justification documentation must include:
- A clear statement of the unique performance factors of the product or supplier specified.
- Why those unique factors are required.
- What other products or suppliers were evaluated.
- The reason(s) for rejecting the other products or suppliers (price is not a justification for a sole source award).
- Forms must be signed by a chair, director or Principal Investigator, and the title of that person must be indicated on the form. Failure to do this may result in processing delays.
Please not that an unnecessary or poorly justified sole source purchase may result in negative findings and potential loss of funding.
Justifications for Sole Source
Possible justifications for a sole source purchase include:
- The requested product is an integral repair part or accessory compatible with existing equipment.
- The requested product is essential in maintaining research continuity or to remain in compliance with established university standards.
- Only a particular brand or "make" is compatible with existing equipment or inventory.
- Only one source is known for a specialized item of equipment or material.
- Only one contractor is capable of providing the required service.
As with all purchases, Procurement & Contracting Services will determine that the university is paying a reasonable price.