855 R.I. Code R. 855-RICR-00-00-1.2

Current through December 26, 2024

Section 855-RICR-00-00-1.2 - Source Selection

1.2.1Contracting Methods

A. The Authority recognizes and may use any of the following four (4) basic contracting methods permitted by Rhode Island law to procure services, construction, equipment, and supplies:

1. Competitive sealed bids;

2. Competitive negotiation;

3. Small purchases; and

4. Noncompetitive procurements.

1.2.2Competitive Negotiation

A. The Authority may use competitive negotiation under the following circumstances:

1. When the Chief Purchasing Officer determines, in writing, that the use of competitive sealed bidding is not practicable.

2. When the Chief Purchasing Officer determines, in writing, that the bid proposal prices received by the competitive sealed bidding method either are greater than the funds available or were not independently reached in open competition, and the best interests of the Authority would not be served by delay.

1.2.3Small Purchases

A. Small purchases that do not exceed one thousand dollars ($1,000.00) may be accomplished without competitive solicitation if the prices are considered by the Purchasing Agent to be fair and reasonable.

B. If practicable under the circumstances, the Purchasing Agent will obtain informal quotes and distribute purchase orders equitably among vendors if it is in the Authority's best interest to do so.

1. Competitive quotes shall be obtained in the form of at least three (3) quotations for any small purchases between one thousand dollars ($1,000.00) and five thousand dollars ($5,000.00) (ten thousand dollars ($10,000.00) for construction). Although three (3) quotes shall be considered the minimum, the Purchasing Agent may in some instances declare the existence of fewer than three (3) quotes to be considered to provide adequate competition.

1.2.4Noncompetitive Procurements

A. In addition to the provisions set forth in R.I. Gen. Laws § 37-2-21, when it is determined that there is only one (1) source for the services, construction, equipment, or supplies required (sole source procurement), or when there exists a threat to public health, welfare, or safety under emergency conditions (emergency conditions), contracts may be awarded by noncompetitive procurements.

1. Sole Source Procurement

a. Contracts may be awarded for a supply, service, equipment, or construction by noncompetitive procurements when there is only one (1) source.

b. Sole source procurement will be allowed only on an exception basis and must be documented and approved in writing by the Purchasing Agent (for contracts up to five thousand dollars ($5,000.00)) and the Chief Purchasing Officer, based on a written recommendation by the Purchasing Agent (for contracts in excess of five thousand dollars ($5,000.00)).

c. Sole source procurements that will result in multiyear contracts require the prior approval of the members of the Authority.

d. Examples of sole source exceptions include, without limitation, circumstances in which:

(1) There is only one (1) responsible source and no other supplier, such as a utility company;

(2) The source demonstrates a unique and innovative concept not otherwise available to the Authority;

(3) Specialized replacement or repairs parts are necessary to maintain the integrity or function of a system.

e. Each noncompetitive procurement over five thousand dollars ($5,000.00) must be supported by documentation that justifies the selection of the vendor.

(1) Such documentation should include, without limitation:

(AA) A statement of the relevant circumstances and detailed information to support that statement;

(BB) Cost and price analysis;

(CC) Summary of the negotiations with the vendor; and

(DD) Basis for determining that the price is fair and reasonable.

(2) A general conclusion that a certain source is uniquely qualified, has personal know-how or experience, or is the only source that can meet certain non-emergency delivery requirements, does not qualify as sufficient justification to use a single source.

f. The availability of this sole source procurement exception from competitive bidding does not diminish the responsibility of the Purchasing Agent to evaluate the market continuously to research product alternatives and develop additional sources to the extent feasible or practicable under the circumstances.

g. In attempting to achieve the goal of maximizing competition to the greatest extent possible and reducing the Authority's reliance on sole sources of supply, service, or construction, the Authority will pursue alternative vendors for equivalents as long as such alternatives are in the Authority's best interests, taking into account safety, security, price, available warranties, and operational cost effectiveness.

2. Emergency Conditions Procurement

a. The Chief Purchasing Officer or the Purchasing Agent (in his or her absence) may make, or authorize others to make, emergency procurements when there exists a threat to public health, welfare, or safety under emergency conditions; provided that emergency procurements shall be made with such competition as is practicable under the circumstances.

b. The determination of the basis for emergency and for the selection of the vendor must be in writing.

c. "Emergency conditions" means a situation to which an urgent response is required because of immediate dangers to health and safety, threats to property or necessary functions, or failures of critical equipment. Inadequate anticipation of need is not considered justification for "emergency" procurement. Commitments that extend beyond the immediate response to the emergency conditions are prohibited.

855 R.I. Code R. 855-RICR-00-00-1.2

Amended effective 4/18/2021