Section 3-122-81 - General provisions(a) Sole source procurement shall be in accordance with section 103D-30 6, HRS, with the exception of sole source procurement subject to section 103D-305, HRS.(b) A sole source purchase may be made when only one source is available for a purchase, unless the expenditure is expressly exempt from public bidding by law or rule.(c) Justification for a sole source purchase must establish that the good, service, or construction has a unique feature, characteristic, or capability essential to the agency to accomplish its work and is available from only one supplier or source. Examples are:
(2) Compatibility to existing equipment; or(3) Public utility repair or construction that can only be provided by the utility company.(d) The contract period for a sole source procurement shall not exceed one year, unless approval is granted for a multi-term contract pursuant to section 3-122-149.(e) Approval for sole source procurement may be granted by the chief procurement officer when there is a requirement for a good or service in limited quantity for test or evaluation purpose.(f) The following are not justifications for sole source procurements: (1) An item is referred to by an exact brand, but there are other brands that qualify as "equals";(2) An item is unique, but is available from more than one supplier, is called a "restrictive" purchase subject to bidding;(3) The fact that a person or organization is or has been furnishing services to a purchasing agency does not, by itself, render the person or organization the only source for the type of service required;(4) The potential loss of funds at the end of a fiscal year.(g) The procurement officer should conduct negotiations with the sole source vendor to determine the factors as cost, quality, terms, and delivery.(h) Cost or pricing data requirements shall be as specified in section 103D-312, HRS, and subchapter 15.(i) A purchase order shall be issued or a certification that funds are available for the amount of the purchase shall be obtained for a sole source purchase, pursuant to section 103D-309, HRS, and subchapter 12.(j) Pursuant to section 103D-306(c), HRS, the procurement policy board shall maintain a list, entitled "Procurements Approved for Sole Source" that may be procured without obtaining a sole source approval, pursuant to section 3-122-82. The chief procurement officer may request reports from the heads of purchasing agencies on sole source procurements. The list of sole source procurements shall be reviewed by the procurement policy board biennially and issued by procurement directive. Purchasing agencies shall cite on the purchase order or on the contract the sole source authority as "Approved for Sole Source Procurement pursuant to Section 3-122-81, (cite sole source number from attached list), Hawaii Administrative Rules".
[Eff 12/15/95; am and comp 11/17/97; am 7/6/99; am and comp MAR 21 2008] (Auth: HRS §§ 103D-202, 103D-306, 103D-312) (Imp: HRS §§ 103D-306, 103D-309, 103D-312)