Chapter 41.56
SOLE SOURCE DESIGNATION

Sections:

41.56.010    Authority.

41.56.020    Sole source criteria.

41.56.030    Procedures.

41.56.010 Authority.

The City purchasing manual allows for exemption from the competitive procurement process when a written determination has been made by a Department Director or Division Manager, and approved by the Purchasing Manager, City Manager or City Council, that there is only one source practicably or reasonably available to supply a good or service.

When in the opinion of the Purchasing Manager the best interests of the City shall be served, the Purchasing Manager may authorize the use of sole source procurement procedures, provided the expenditure does not exceed $25,000. Initial sole source requests up to $25,000 must also be approved by the Department Director. Initial sole source requests from $25,000 to $50,000 must be approved by the City Manager. Initial requests for sole source expenditures of $50,000 or more shall be approved by City Council. See GJMC 41.08.080, Purchasing approval limits table.

Approved sole source requests may remain in effect for the useful life of the product/project given that the criteria set forth in this section are still applicable. Purchases of items related to prior approved sole source requests may be procured without repetitive approval authority given that budgeted funds are available.

(Res. 04-12 (§ 14.1), 1-16-12)

41.56.020 Sole source criteria.

The following are the criteria used for determining sole source:

(a)    The vendor is the original equipment supplier/manufacturer with similar parts or equipment available from another manufacturer;

(b)    The compatibility or conformity with City-owned equipment or materials in which nonconformance would require the expenditure of additional funds;

(c)    No other equipment is available that shall meet the specialized needs of the department or perform the intended function;

(d)    Detailed justification is available which reasonably establishes that the vendor is the only source practicably available to provide the item or service required;

(e)    Written demonstration and justification is available which reasonably and practicably establishes that the selection of a sole source vendor is in the best interest of the City; or

(f)    The product, equipment or service is functionally superior to all other competitive products.

(Res. 04-12 (§ 14.2), 1-16-12)

41.56.030 Procedures.

(a)    The department shall complete a sole source justification form and attach documentation and justification that establishes that the proposed vendor is the only source reasonably or practicably available to provide the item or service required. The department is responsible for conducting negotiations, as appropriate, as to price, delivery and terms. In an effort to ensure that sole source justification forms are valid, after a period of three years, the purchasing staff may request that the using department update the information or justify that the sole source conditions continue to be valid. The sole source justification form can be found on the intranet under Forms – Purchasing.

(b)    Authorization Thresholds. For sole source purchases follow the approval limits designated in Chapter 41.08 GJMC. If a sole source is required to be approved by the City Council, the presentation to Council for final approval or disapproval must be made by the requesting department. The Purchasing Manager shall review the recommendation for compliance with the City’s policies prior to the agenda being forwarded to the City Clerk to be placed on City Council’s agenda. Presentation shall be made by the requesting department.

(Res. 04-12 (§ 14.3), 1-16-12)