Section 1720-01-04-.06 - NON-COMPETITIVE CONTRACTING (SOLE-SOURCE NEGOTIATION) WITH VENDORS OR INDIVIDUALS(1) Non-competitive (sole source) contracting is the negotiation of a contract or agreement with a single vendor (firm) or individual for specialized services when competitive methods would not be feasible or practical. (a) Vendor or Firm. The University can enter into a non-competitive contract with a vendor or firm when one or more of the following conditions are met:1. Competitive methods are not feasible or practical, as in the following situations: (i) When only one product or service can meet the specific need and is available from only one source.(ii) Urgent need prevents competitive methods.(iii) Compatibility or consistency with past acquisitions of products or services is essential (e.g., for maintaining continuity of research or avoiding additional costs by changing the supplier of product or service).2. The contract is for services from another governmental unit, such as a Federal agency, or from another university.3. A subcontractor is identified in the prime contract and the subcontract is therefore approved by the funding source. However, a non-competitive subcontract cannot be justified on this basis when another State agency is the proposed funding source (unless 2. above applies). The originating department must provide the campus/unit contract office with sufficient documentation to justify sole-source negotiation as part of the contract review process. The campus/unit contract office will certify that the contract meets the criteria for sole-source selection before it is executed for the University. (See Appendix A) The campus/unit Purchasing Department must also approve the justification presented for sole-source selection if the contract amount exceeds $50,000. Quarterly, the campus/unit Contract Office (or the Purchasing Department) must send copies of all forms for non-competitive contracts approved by their office to UWA Audit and Management Services for review.
Note: A formal contract is not required when the cost of the services to be provided is $2,000 or less. However, departments must comply with purchasing requirements for biddable services and may not request multiple invoices for the same service to stay within the $2,000 limit.
(b) Individuals. When a need exists for short-term services from independent contractors, consultants, musicians, entertainers, or professional and academic personnel (visiting lecturers, participants in graduate seminars and colloquia, speakers for special functions, consultants on special projects, etc.), departments may negotiate with appropriate individuals for the desired services in accordance with the following guidelines.1. A contract is required when the cost of the services to the department exceeds $1,000 per day or $12,000 in a calendar year. An informal written agreement may be entered into and maintained in the department when the cost of the services to the department does not exceed $1,000 per day or $12,000 in a calendar year.2. Rates of compensation must be in line with prevailing compensation levels for such services, considering academic rank, professional reputation, and advance preparation required. These rates are subject to the approval of the dean of the College or the appropriate administrator and the appropriate Vice Chancellor.3. The individual may not be an employee of the University of Tennessee, the Board of Regents, or other agency of the State of Tennessee.(2) When a contract is required to secure services from a vendor or individual, the department obtaining the services should use the University's standard contract form (see Appendix B), which contains all required terms and conditions.(3) An invoice from a vendor or individual approved by the department head or a Request for Special Payment (Form T-27 - see Appendix C) prepared by the department must be used to initiate payment for services procured through contracts or informal agreements. Invoices or T-27s should be forwarded to the Treasurer's Office for payment. (Consult campus/unit procedures statements for required approvals and submission procedures.)Tenn. Comp. R. & Regs. 1720-01-04-.06
Original rule filed March 29, 1978; effective June 14, 1978. Repeal and new rule filed May 27, 1986; effective August 12, 1986. Amendment filed September 20, 1999; effective January 28, 2000.Authority: T.C.A. 49-9-209, "Public Acts of Tennessee, 1839-1840", Chapter 98, Section 5 and "Public Acts of Tennessee, 1807", Chapter 64.