GAP 200.101, Sole Source Justification/Price Quote Selection for Purchases on Sponsored Funds

I.   Purpose

II.  Procedure

III. Federal Regulations

 

 

I. Purpose

This procedure describes the appropriate procurement methods related to use of the Sole Source Justification/Price Quote Selection Form. The Sole Source Justification/Price Quote Selection Form will be used when:

1.  A project is purchasing goods, services or other materials and has solicited price or rate quotations from fewer than three (3) sources (also known as Sole Source procurement).

2.  A project is selecting a quotation that is not the lowest cost alternative.

The use of this procurement method and form is appropriate for purchases at or above the micro-purchase threshold (MPT) (currently set at $10,000 per the FY2017 NDAA), but below the simplified acquisition threshold (SAT) (currently set at $250,000 per the FY2018 NDAA). This can apply to the purchase of:

• an item whose individual value exceeds the MPT;
• an item whose aggregate total cost exceeds the MPT;
• a set of items whose aggregate total costs exceeds the MPT; or
• an asset under construction, where the aggregate total of the component parts is determined to exceed the MPT

This procedure does not apply to purchases where the vendor/supplier appears in Buy@Duke marketplace (electronic catalogues).

This procedure refers to the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 2 CFR Part 200, otherwise referred to as the Uniform Guidance (UG), which includes principles and methods for purchasing goods when using funds from grants, contracts, and other agreements between the Federal Government and Duke. The procedure described below references 2 CFR 200.320.

 

II. Procedure

When purchasing goods, services, or other materials at or above the MPT, as described in Section I, Duke is required to obtain price or rate quotes from an adequate number of qualified sources. At Duke, Grant Managers and Principal Investigators are required to attach a minimum of three (3) price or rate quotes to a Buy@Duke shopping cart to be considered adequate. Price or rate quotes may take the form of bids, proposals, online listings (screenshot required), or another form approved by Procurement Services.

Note: purchases of the same item should only be split between Buy@Duke Carts when the scientific programmatic needs of the project require multiple purchases over a period of time. In these scenarios, GMs should proactively work with Procurement Services and their OSP liaison to determine the appropriate procedures.

If a minimum of three (3) price or rate quotations are not obtained, a Sole Source Justification/Price Quote Selection Form must appear in the Notes and Attachment section of the Buy@Duke Cart. On the form, the GM/PI must indicate which of the following conditions exists and provide a narrative explanation with sufficient proof of how the scientific or programmatic needs of the project will be furthered by the purchase of the goods, services, or other materials. Cost or convenience is not a sufficient reason for procurement by Sole Source.

• There are no competitive vendors in the market that can provide the requested
• service/product
• The unique functionality of the vendor’s equipment meets the specifications
• This is the only service provider with specific expertise that meets the specifications
• This vendor is currently used for ongoing research and, to maintain continuity and study protocols, we cannot introduce a new variable by using a different product
• Authorized by Agency (or pass through entity)

Price Quote Selection

If the project selects a quotation that is not the lowest cost alternative, a GM/PI must complete the “Price Quote Selection” portion of the Sole Source Justification/Price Quote Selection Form. The form, along with the quotations, should appear in the Notes and Attachment section of the Buy@Duke Cart. The GM/PI must also provide a written narrative justifying their price quote selection. Similar to the Sole Source Justification, this narrative should reference the programmatic or scientific needs of a project.

Procurement Services will review the form and attachments to ensure adequate justification has been provided for selecting a higher cost option. If further questions arise, Procurement Services will consult with the Office of Post-Award Administration.

 

III. Federal Regulations

This GAP reflects the provisions of the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, 2 CFR Part 200, otherwise referred to as the Uniform Guidance (UG). The UG became effective as of December 26, 2014, and revised as of November 12, 2020, and all awards issued on or after this date must be managed in accordance with its provisions.  It is important to verify the applicable regulations for an individual award, which may be found in the Award Notice issued by the funding agency.

These guidelines pertain to federally sponsored projects and should be used as guidance for all sponsors unless specifically addressed in a non-federal sponsor's policies and/or procedures.

This GAP supersedes previous GAP versions, Duke Policies, Guidelines, etc.