1. A. For the purposes of this Section, the term “sole-source procurement” means a material or service procured without competition when:

   1. 1. There is only a single source for the material or service, or
   2. 2. No reasonable alternative source exists.
2. B. This Section applies to only sole source procurements, estimated to exceed the amount prescribed in A.R.S. § 41-2535.

3. C. The state procurement administrator may delegate this authority to the agency chief procurement officer in accordance with R2-7-202. If not delegated to the agency chief procurement officer, the agency chief procurement officer shall submit a written request for approval to procure from a sole source to the state procurement administrator before proceeding. The request shall include the following information:

   1. 1. A description of the procurement need and the reason why there is only a single source available or no reasonable alternative exists,
   2. 2. The name of the proposed supplier,
   3. 3. The duration and estimated total dollar value of the proposed procurement,
   4. 4. Documentation that the price submitted is fair and reasonable pursuant to R2-7-702, and
   5. 5. A description of efforts made to seek other sources.

4. D. The state procurement administrator shall send notice to registered vendors on the electronic system to invite comments on the sole-source request for three working days. Following this period, the state procurement administrator shall either:

   1. 1. Issue written approval, with any conditions or restrictions;
   2. 2. Request additional information from the agency chief procurement officer; or
   3. 3. Deny the request if input or information received shows that more than one source is available or a reasonable alternative source exists for the procurement need.
5. E. If the sole-source procurement is authorized or approved, the agency chief procurement officer shall negotiate a contract advantageous to the state.
6. F. The agency chief procurement officer shall keep a record of all sole-source procurements pursuant to A.R.S. § 41-2551.

Historical Note

New Section made by final rulemaking at 12 A.A.R. 508, effective April 8, 2006 (Supp. 06-1). Amended by final rulemaking at 18 A.A.R. 3118, effective January 7, 2013 (12-4). Amended by final rulemaking at 20 A.A.R. 3510, effective February 2, 2015 (Supp. 14-4).