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2.5.604    SOLE SOURCE PROCUREMENT

(1) This rule applies to all sole source procurements of $5,000 or greater unless exigency procurements described in ARM 2.5.605 are necessary.

(2) Sole source procurement is permissible under the following circumstances:

(a) the compatibility of current services or equipment, accessories, or replacement parts is the paramount consideration;

(b) there is no existent equivalent product; or

(c) only one source is acceptable or suitable for the supply or service item.

(3) For purchases with a total contract value greater than $5,000, the determination as to whether a procurement shall be made as a sole source shall be made by the division, unless specifically authorized in a written agency delegation agreement. In cases of reasonable doubt, competition should be solicited. A request by a state agency to the division that a procurement be restricted to one vendor must be accompanied by a written justification using the "Sole Source Procurement Justification" form referenced in (5).

(4) The procurement officer may conduct negotiations, as appropriate, as to price, delivery, and terms.

(5) For the purpose of complying with 18-4-306, MCA, a record of sole source procurements greater than $5,000 shall be maintained by the procuring agency using the "Sole Source Procurement Justification" form provided by the division.

(6) The following items do not require sole source justification and shall be purchased directly by the agency regardless of delegated authority:

(a) professional licenses;

(b) dues to associations;

(c) renewal of software license agreements;

(d) purchase or renewal of maintenance agreements for software or hardware; and

(e) publications available only from a single supplier.

(7) If an extension or renewal of a sole source contract is required, the agency shall provide the division with a justification form as provided in (5).

History: 18-4-221, MCA; IMP, 18-4-306, MCA; NEW, 1983 MAR p. 1918, Eff. 12/30/83; AMD, 1987 MAR p. 1961, Eff. 10/30/87; AMD, 1990 MAR p. 1770, Eff. 9/14/90; AMD, 1994 MAR p. 383, Eff. 2/25/94; AMD, 1995 MAR p. 2241, Eff. 11/1/95; AMD, 1997 MAR p. 1816, Eff. 10/7/97; AMD, 2000 MAR p. 65, Eff. 2/1/00; AMD, 2001 MAR p. 2009, Eff. 10/12/01; AMD, 2002 MAR p. 2651, Eff. 9/27/02; AMD, 2007 MAR p. 1657, Eff. 10/26/07; AMD, 2014 MAR p. 1077, Eff. 5/23/14.

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