1. (1) Conditions for Use of Sole Source Procurement. Sole source procurement is not permissible unless a required supply or service is available from only a single supplier. A requirement for a particular proprietary item does not justify a sole source procurement if there is more than one potential bidder or offeror for that item. The following are examples of circumstances which could necessitate sole source procurement:

   1. (a) where the compatibility of equipment, accessories, or replacement parts is the paramount consideration;
   2. (b) where a sole supplier’s item is needed for trial use or testing; and

   3. (c) where a sole supplier's item is to be procured for resale.

      The determination as to whether a procurement shall be made as a sole source shall be made, in writing, by the Chief Procurement Officer. The Chief Procurement Officer may specify the application of such determination and the duration of its effectiveness. If such duration shall be for more than one year, the Chief Procurement Officer must specify the period and certify annually the continuation of any multi-year sole source contract.  In cases of reasonable doubt, competition should be solicited. Any request by a Using Agency that a procurement be restricted to one potential contractor shall be accompanied by an explanation as to why no other will be suitable or acceptable to meet the need.

2. (2) Negotiation in Sole Source Procurement. The Procurement Officer shall conduct negotiations, as appropriate, as to price, delivery, and terms.

3. (3) Record of Sole Source Procurement. For the purpose of complying with Code of Ala. 1975, §41-4-149, a record of sole source procurements shall be maintained that lists:

   1. (a) each contractor's name;
   2. (b) the amount and type of each contract;
   3. (c) a listing of the supplies procured under each contract; and

   4. (d) the identification number of each contract file.

      The record for each fiscal year shall be available for public inspection, except where disclosure would be detrimental to the safety or security of persons or property or to the public interest as determined by the Chief Procurement Officer.

Author: Department of Finance, Legal Division

Statutory Authority: Code of Ala. 1975, §41-4-135.

Editor’s Note: Renumbered from 355-4-3-.05

History: New Rule: Published June 30, 2022; effective August 14, 2022; operative October 1, 2022. Amended: January 13, 2023; Effective: May 15, 2023. Amended: Published January 31, 2025; effective March 17, 2025.