Rule 2.5.604 - SOLE SOURCE PROCUREMENT(1) This rule applies to all sole source procurements of $10,000 or more unless exigency procurements described in ARM 2.5.605 are necessary.(2) Sole source procurement is permissible under the following circumstances: (a) the compatibility of current services or equipment, accessories, or replacement parts is the paramount consideration;(b) there is no existent equivalent product; or (c) only one source is acceptable or suitable for the supply or service item.(3) For purchases with a total contract value of $10,000 or more, the determination as to whether a procurement shall be made as a sole source shall be made by the division, unless specifically authorized in a written agency delegation agreement. In cases of reasonable doubt, competition should be solicited. A request by a state agency to the division that a procurement be restricted to one vendor must be accompanied by a written justification using the "Sole Source Procurement Justification" form referenced in (5).(4) For any requested sole source procurement with a total contract value exceeding $100,000, the division or procuring agency must provide public notice of intent to sole source as provided in ARM 2.5.503. An intent to sole source shall be posted on the division or agency website for 10 business days to allow for public review and comment before the division may approve sole source procurement.(5) For the purpose of complying with 18-4-306, MCA, a record of sole source procurements of $10,000 or more shall be maintained by the procuring agency using the "Sole Source Procurement Justification" form provided by the division.(6) The following items do not require sole source justification and shall be purchased directly by the agency regardless of delegated authority:(a) professional licenses;(b) dues to associations;(c) renewal of software license agreements;(d) purchase or renewal of maintenance agreements for software or hardware. The purchase or renewal of a software subscription agreement or the addition of new major functional capabilities or services is not considered purchase or renewal of a maintenance agreement for software or hardware and such items cannot be purchased directly by an agency without sole source approval or another approved procurement method; and(e) publications available only from a single supplier.(7) Any modification, extension, or renewal to an existing sole source contract requires the agency to provide the division with a new justification form as provided in (5).NEW, 1983 MAR p. 1918, Eff. 12/30/83; AMD, 1987 MAR p. 1961, Eff. 10/30/87; AMD, 1990 MAR p. 1770, Eff. 9/14/90; AMD, 1994 MAR p. 383, Eff. 2/25/94; AMD, 1995 MAR p. 2241, Eff. 11/1/95; AMD, 1997 MAR p. 1816, Eff. 10/7/97; AMD, 2000 MAR p. 65, Eff. 2/1/00; AMD, 2001 MAR p. 2009, Eff. 10/12/01; AMD, 2002 MAR p. 2651, Eff. 9/27/02; AMD, 2007 MAR p. 1657, Eff. 10/26/07; AMD, 2014 MAR p. 1077, Eff. 5/23/14; AMD, 2022 MAR p. 1789, Eff. 9/24/2022; AMD, 2024 MAR p. 1451, Eff. 6/22/2024AUTH: 18-4-221, MCA; IMP: 18-4-306, MCA