1. (a) A procurement officer may contract for supplies, services, professional services, or construction without the use of competitive source selection

   1. (1) for any contract issued by another state or federal government agency where the authority is authorized to place orders under the terms and conditions of that contract;
   2. (2) for a contract where the total cost is not more than $5,000 and the price is fair and reasonable;

   3. (3) for a contract that was previously competitively bid, but where only one nonresponsive bid was received and the chief procurement officer determines that negotiation with that bidder is in the grantee's best interest because.

      1. (A) an immediate need exists for the goods or services; or
      2. (B) re-solicitation is unlikely to increase the number of bids;

   4. (4) for a contract where time is of the essence and the chief procurement officer makes a determination that the non-competitive procurement is in the grantee's best interest because

      1. (A) the time required to solicit competitive bids or proposals for the equipment or services would adversely impact the grantee's project;
      2. (B) the price for goods or services is reasonable compared to the impacts of a delay;
      3. (C) the proposed contractor is in a unique position to be able to meet the grantee's needs; and
      4. (D) the duration of the contract is limited; or
   5. (5) for a contract where the chief procurement officer determines that award of a contract by competitive sealed bidding, competitive sealed proposals, or small procurement procedures is not practicable, and that award to a single source is in the grantee's best interests as no other reasonable source of the supplies or services is available that could meet the requirements and schedule; the procurement officer may advertise its intent to make a single source award to determine if a single source award is appropriate.
2. (b) For procurements made under (a)(3), (4) and (5) of this section, the chief procurement officer's determination must be in writing and include a written explanation with evidence necessary for the independent examination and determination of the material facts of the procurement. The determination by the chief procurement officer that a specific course of action is or is not "in the grantee's best interest" means a determination that is reasonable under the circumstances and is not arbitrary, capricious, or prompted by corruption. A request to use a non-competitive procurement method that is based on a determination that it is "in the grantee's best interest" must cite the specific and significant interests to support use of the non-competitive procurement method.
3. (c) A procurement officer shall conduct negotiations, as appropriate, as to the price, delivery, and terms of a non-competitive procurement identified in (a)(3), (4), and (5) of this section, and the contractor shall provide cost and pricing data in accordance with 3 AAC 109.560.
4. (d) The determination required for procurements under (a)(3), (4), and (5) of this section may only be made by the chief procurement officer or the executive director in the absence of the chief procurement officer.
5. (e) The procurement file must include a copy of the determinations for procurements made under (a)(3), (4), and (5) of this section.

(Eff. 7/10/2015, Register 215)

Authority: AS 44.83.080