Non Competitive Purchases

1. Non Competitive Purchases Fiscal Meeting 5/30/13

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.

8. Cost or Price ReasonablenessA8.285 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.

9. 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.

10. 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 profession

11. Exempt ProcurementA8.220.9 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)”

12. 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