Sole Source Justification
Learn about sole source justifications, and when and how to submit one.
UC policy for purchase of goods and services requires competitive bids for purchase contracts over $100,000. For federally-funded purchases, the threshold for Federally Funded Contract purchases is ≥$15,000 (including tax and shipping), the threshold for Federally-funded Grants is ≥$50,000 (including tax and shipping) and the threshold for non‐federally funded purchases is ≥ $100,000 (excluding tax, but including shipping).
There are times when you may need a particular supplier or product and wish to request exemption from the competitive bid requirement. In these situations, the department must submit a written Sole Source Justification form UC SSPR Justification Form to Procurement & Contracts.
Basis for Sole Source
Competition may be waived if a purchase of goods or services qualifies as:
- Personal or professional services
- Unique, proprietary, available only from a single source, or designated to be compatible with existing installation, facility, or location
Items to Consider
When you request a sole source justification, consider the following:
- Reasonable price: Even if there is a good reason for a sole source, we enter into a purchase contract only after determining that we will pay a reasonable price. Documented price comparisons, discounts off published price lists, buyers' knowledge of the market, Fair Trade laws, and other cost-price analyses determine if the price is reasonable.
- Brand or trade names: When you believe that only a specific brand, trade name, item, or proprietary service will properly satisfy your requirements, include a description of the technical features that make that product or service the only one that fulfills your needs.
- Extenuating circumstances: When the prime-sponsoring agency or governing law directs the purchase, or when unusual or compelling urgency for acquiring the goods or services precludes obtaining formal competition, the purchase may qualify for sole source justification.
- Consultants: Under UC Policy, agreements for independent consulting services must be competitive if the contract exceeds $100,000. If you do not seek competition, you must provide a written sole source justification with the request for consultant services.
Making a request
To request a sole source justification, the department must submit a written Sole Source Justification form (PDF) via a requisition to Procurement & Contracts.
Note: You must provide a thorough, complete response to all considerations. You may attach additional pages to the form.
For more details on competition and sole-source requirements, see Business and Financial Bulletin (BUS) 43, Part 3, Purchase Transactions (PDF).