Minutes of a Regular Meeting, June 22-23, 2004 - Digital Collections

REGENTS’ POLICY MANUALSECTION 4—FINANCE AND MANAGEMENTA sole source purchase is any which, by the specifications needed by the requestor or by the specificrestrictions imposed by a funds provider, restricts the action to one supplier or to one brand name. Thesole source determination and justification shall not be based upon personal or professional preference ofthe requestor. Justification shall be objective rather than subjective.A major component of a sole source purchase is the determination of fairness of price. Even though amaterial, service or supplier may truly fit the conditions of sole source, the requestor shall demonstratethat the related price is fair and reasonable.A sole source purchase is preferable to a formal competitive process in which specifications arewritten so narrowly that the outcome has no chance but to be the same as if a sole source was executed.Any University employee involved in a potential sole source purchase shall weigh two risks. The firstrisk is conducting a sole source purchase when in fact a competitive situation exists. The second risk isconducting a competitive purchase when in fact a sole source situation exists. The first is the greater risk,but both shall be addressed.Where a sole source purchase satisfies the criteria that it must be approved by or reported to theBoard of Regents, the requestor shall defend the action, if necessary, before the Board of Regents. Forevery sole source purchase that has been executed, the requestor shall, if necessary, justify the action incases of audit, protest, public inquiry, litigation or similar circumstance.Any requestor or buyer who knowingly executes a sole source purchase when, in fact, it is not one,may be subject to administrative action as otherwise provided for by Board of Regents’ policy.The Purchasing Director is responsible for developing and maintaining the specific guidelines andforms necessary for requestors to document and justify proposed sole source purchases, and has theauthority to challenge and deny requested actions that lack sufficient justification. The completed andexecuted forms shall be an integral part of the procurement file, available for inspection and audit byappropriate authorities.4.11.9—INVENTORY CONTROL AND CAPITALIZATION OF CERTAINPURCHASES, GIFTS OR OTHER ACQUISITIONSIn addition to the policies and procedures governing the acquisition of products and services, thefollowing requirements apply to certain purchases, gifts or other acquisitions.Capital assets coming under the control of a University department, whether through purchase, gift orotherwise, shall be recorded in the University’s inventory system. Additionally, capital assets that aremovable shall be tagged. If a movable capital asset is transferred from one location to another, thetransferring cognizant department shall report such movement to the appropriate inventory control office,and the new location shall be recorded in the system.For purposes of this policy, a capital asset is one that meets the federal useful life and cost criteriaspecified in the Office of Management and Budget Circular A-21, as may be amended or superceded.THE UNIVERSITY OF OKLAHOMA 248