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  • All About Sole Source Orders

Policy Feature: All About Sole Source Orders

Monday, August 19, 2024

There are two IU policies that govern when sourcing and bidding is required. One, FIN-PURCH-03: Competition and Sourcing, defines the sourcing requirements at different dollar thresholds. Sourcing means finding and evaluating potential suppliers and obtaining proposals. Sourcing requirements help ensure IU pays the most cost-effective price and works with ethical, legitimate businesses for significant purchases.

What if the good or service you need is only available from one supplier? In these cases, sole sourcing of an order may be appropriate. Sole sourcing means that the bidding process is bypassed. Purchasing conducts its own research to determine when there is a legitimate business case for sole sourcing an order, and also reviews information provided by the department. Department-provided details are collected on the Sole/Single Source Request Form.

Policy FIN-PURCH-04: Sole-Source Orders defines the criteria Purchasing considers to determine if sole sourcing an order is justified. Sole sourcing may be appropriate if one or more of these criteria is met:

  1. After vetting several sources, it’s found that competition is inadequate. 
  2. An urgent need or emergency won't allow the delay that comes with competitive bidding.
  3. The federal awarding agency or pass-through entity approves noncompetitive proposals when the university requests it in writing.
  4. The item or service is only available from one provider.

Wanting to work with the same supplier, or preferring one supplier over another, are not legitimate reasons for orders to be sole sourced unless a change would create a major disruption in service. The situation must meet one of the criteria described above. If it does, complete the Sole/Single Source Request Form and attach it to your BUY.IU requisition as a Comment.

When your order routes to Purchasing, a Category Manager reviews the Sole Source Form and determines if sole sourcing is justified. If they decide it is, the order continues to route for approval and a purchase order (PO) is created and sent to the supplier you identified.

If Purchasing determines that sole sourcing is not justified, a sourcing event will be created. The supplier you identified on the Sole Source Form will be invited to participate, along with a selection of diverse and vetted suppliers selected by Purchasing. Stakeholders from your department and Purchasing staff will review responses from the participating suppliers and select the best option.

Not sure if sole sourcing is appropriate for your order? Contact the Purchasing team using the Support Form. On the form, select the “Sourcing (Quotes and Bids)” and “Sole-Sourcing Requirements” options.

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INDIANA UNIVERSITY
Financial Training & Communications

Cyber Infrastructure Building (CIB)
2709 E 10th St
Bloomington, IN 47408
Email:
estc@iu.edu

RELATED SITES

  • Finance
  • Office of Procurement Services
  • Insurance, Loss Control, and Claims
  • Office of the Treasurer
  • Office of the University Controller
  • Purchasing
  • Supplier Diversity
  • Travel Management Services
  • University Budget Office

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