In accordance with Rice Policy 814, a Sole Source Justification is required for all purchases over $25,000 in which a competitive bid has not been conducted. Preferred Suppliers are exempt from the sole source justification for purchases up to $100,000.
There will be instances when it is appropriate for a Procurement Requester to submit a Sole Source Justification (SSJ) to waive the competitive bid requirement. SSJs standardize the process so as not to create an unreasonable burden to the department processing the request as well as offer clear and concise reasoning to apply to the situation.
It is important to understand that this is not an alternative purchasing method and that the Office of Procurement will review and approve the document before the commitment is made to a supplier. The only valid reasons acceptable to have a waiver considered are as follows and each requires a written explanation:
- The product or service required is the only one that will meet the department/area’s need and it can only be obtained from one source (manufacturer/distributor/service provider).
- The product or service is required to match existing installed equipment or systems or is obtained from a designated service provider to prevent a voided warranty or otherwise required by documented restrictions.
- The service is controlled by state, local, or municipal authority, utility, or government. This is a contract for professional or artistic services (Note – requires a Professional Services Agreement or PSA).
- The transaction is a re-order based upon a previous bid(s) resulting from a competitive award that has already occurred in the last calendar year and the pricing is set in accordance with that bid.
- An unusual or compelling urgency exists that requires Rice University to waive the competitive bid requirement. (Note; Inadequate planning is not a valid reason to waive competition and may result in rejection of the bid requirement.
Inadequate prior planning is not a valid reason to waive competition. The Sole-Source Justification template can be found here.