Sole Source Procurement Threshold
Proposed Rules: Closed to Comments
Statement of Basis and Purpose
Procurement Policy Board (“PPB”) Rule 3-05 currently sets forth the procedures that must be followed for all sole source procurements above $2,500. Sole source procurement is a method of procurement that is to be used where there is only one source for the required goods, service or construction. PPB Rule 3-05 is being amended to make the sole source procurement rule consistent with recent changes to another PPB Rule, Rule 3-08. PPB Rule 3-08 generally governs small purchases, i.e. purchases under $100,000. Recent amendments to PPB Rule 3-08 changed the amount below which no competition is required for small purchases, from $5,000 to $20,000. In order to be consistent with these changes, PPB Rule 3-05 is being amended to increase the threshold above which agencies must follow sole source procurement procedures to $20,000; above this threshold, agencies must follow the sole source procurement process set forth in Rule 3-05.
Rule 3-05 is also being amended to provide that, for all procurements subject to Rule 3-05, the Agency Chief Contracting Officer (“ACCO”) must provide a description of the process used to determine that only one source was available; a description of the efforts made to ensure that offers were solicited from other sources; where applicable, a statement of intended actions to develop competition in future; and must perform a presoliciation review. Previously, some of these requirements only applied to procurements above specified monetary thresholds ($10,000 or less for goods and services and $15,000 or less for construction and construction-related services).