Section R19-3-535. Sole Source Procurements

A.      For the purposes of this Section, the term “sole-source pro- curement” means a material or service procured without com- petition when:

1.        There is only a single source for the material or service, or

2.        No reasonable alternative source exists.

B.       The procurement officer shall make a written determination that includes the following information:

1.        A description of the procurement need and the reason why there is only a single source available or no reason- able alternative exists,

2.        The name of the proposed supplier,

3.        The duration and estimated total dollar value of the pro- posed procurement,

4.        Documentation that the price submitted is fair and rea- sonable pursuant to R19-3-550, and

5.        A description of efforts made to seek other sources.

C.      The procurement officer shall post the request on the Lottery web site and send notice to registered vendors on the state’s electronic system to invite comments on the sole-source request for three working days. Following this period, the pro- curement officer shall either:

1.        Issue a written determination with any conditions or restrictions, or

2.        Retract the determination if input or information received shows that more than one source is available or a reason- able alternative source exists for the procurement need.

D.      If the sole-source procurement is determined, the procurement officer shall negotiate a contract advantageous to the Lottery.

E.       The procurement officer shall notify the Director and the Lot- tery Commission of a contract award. The award will be final and binding unless rejected by the Lottery Commission at a meeting held within 14 calendar days after the award is com- municated to the Commissioners. The procurement officer shall send notice of the meeting to the sole source.

F.       The procurement officer shall keep a record of all sole-source procurements.

Historical Note

Adopted as an emergency effective June 5, 1985, pursu- ant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85- 3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-535 renum- bered to R4-37-532, new Section R4-37-535 renumbered from R4-37-539 and amended effective May 7, 1990 (Supp. 90-2). R19-3-535 recodified from R4-37-535 (Supp. 95-1). Former Section R19-3-535 renumbered to Section R19-3-339 and amended; new Section R19-3-535 renumbered from R19-3-531 and amended, effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Amended by final

rulemaking at 19 A.A.R. 1641, effective August 4, 2013

(Supp. 13-2).