Fiscal Meeting 53013 Sole Source Purchasing A8255 A8250 and RCUH 2120 Only one supplier or source think globally not just locally Unique and essential requirement Requirement can only be met by this particular good service or construction that has the unique feature characteristic ID: 406777
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Non Competitive Purchases
Fiscal Meeting 5/30/13Slide2
Sole Source Purchasing
A8.255, A8.250, and RCUH 2.120
Only one supplier or source (think globally not just locally)
Unique and essential requirement
Requirement can only be met by this particular good, service, or construction that has the unique feature, characteristic, or capability: e.g. proprietary item, compatibility issues, only one authorized servicer.Slide3
When goods or services are necessary in a limited quantity for test of evaluation, the purchase of the item or service may be on a sole source basis with OPRPM approval.
When an item is referred to by an exact brand, but other brands are available that qualify as “acceptable alternatives” or “equals,” the purchase is subject to competitive bid.Slide4
Procurements Approved for Sole Source July 2012
Annual license renewal and maintenance for computer software. Criteria: When license renewal and maintenance can be obtained from only a single source, normally the developer of the software.
Procurement of computer software conversions, modifications, and maintenance for existing programs from the manufacturer of the software. Criteria: Can only be obtained from the manufacturer of the software.
Repair and maintenance services and supplies from the original equipment manufacturer or its designated representative; when the manufacturer or its designated representative is required to provide the services and supplies to retain manufacturer’s warranty or guarantee.
Procurement of equipment upgrades from the original manufacturer to existing equipment and information technology hardware, when the upgrades can only be obtained from the manufacturer.Slide5
Reminder when requesting Sole Source or Sole Brand purchasing:
Attach the proper form OPRPM Form 65 for UH Sole Source or Form 144 for UH Sole Brand, or Sole Source Justification for RCUH.
Determination of Cost or Price Reasonableness (for RCUH), OPRPM Form 95 (for UH), is required to verify that the price offered is fair and reasonable.
PO should cite: “Approved for Sole Source Procurement pursuant to Administrative Procedure A8.255, Sole Source No.___. (cite applicable sole source reason)”
Within your delegated purchasing authority, the FA is responsible to ensure that each sole source purchase is fully justified, the price is fair and reasonable, and the basis for decision is included in the PO documentation.Slide6
Sole Brand A8.255
When an item is unique, but is available from more that one supplier.
Subject to competitive bid, but should be designated by brand name and model number.
Sole Brand must be justified on OPRPM Form 144.
Note: RCUH does not recognize Sole Brand, treat it as a sole source purchase.Slide7Slide8
Cost or Price Reasonableness
A8.285 and RCUH 2.125
Purpose: To insure public funds are being expended to the best advantage of UH
Price Analysis = process of determining that a price is fair and reasonable. It should include an evaluation of prices for same or similar goods or services.
Cost Analysis = review of the cost elements to determine necessity and whether cost is allocable, allowable, and reasonable.Slide9
Requirements:
OPRPM Form 95 for UH; Determination of Cost or Price Reasonableness for RCUH
Must be completed for sole source purchases.
Must be completed when only one quotation is received or the lowest quote is not selected.
Must be completed when there is a price adjustment to an existing contract other than changes to tax, shipping charges, or insurance.
Must be completed for professional services procurements.Slide10
Content to consider:
Evaluation of the prices for same or similar goods or services.
Prior price quotations
Published catalog or price lists
Prices on the open market (i.e. internet)
In-house estimates of cost (i.e. ESF)
Comparisons with expenditures of similar institutions.
Discounts
Prevailing rates in industry or professionSlide11
Exempt Procurement
A8.220.9 and RCUH 2.145
Exempt procurements still require cost price reasonableness analysis.
Within the body of the PO you should cite: “Exempt purchase, pursuant to UH APM Section A8.220.9, Exemption No. ___ (cite applicable from the list)”Slide12
Common Exemptions:
5) Payment of dues or fees of organizations
7) Disbursements to governmental bodies of the State of Hawaii
13) Research, reference, and educational materials including books, maps, periodicals, and pamphlets…and cost associated with publication of articles in scholarly journals
24) New or used items which are advantageous and available on short notice through an auction, bankruptcy, or foreclosure
25) Food and fodder for animals
26) Facility costs for conferences, meetings, and training sessions
30) Procurement of repair services when dismantling is required to assess the extent of repairs
33) Subscription costs and registration or workshop fees for conferences or training