State Funded Single/Sole Source Procurement Requests Policy

Policy Category	Issuing Authority	Responsibility	Publication Date	Next Review Date
Financial	Administration & Finance	Procurement Office	9/25/2026	9/25/2029

Policy Statement & Background:

The purpose of this policy is to establish uniform standards and procedures for State-funded single source, sole source, and emergency procurements conducted by the University. Because these types of purchases limit competition, they require heightened justification and documentation to ensure compliance with New York State laws, SUNY Procedure 7553, and the Office of the State Comptroller (OSC) Guide to Financial Operations.

This policy promotes:

Fiscal accountability and transparency;
Documentation sufficient for OSC audit and internal control; and
Timely, compliant procurement operations for State-funded activities.

Scope & Applicability

This policy applies only to purchases made using State-appropriated funds, including State operating and State special funds. It does not apply to procurements made with Research Foundation, Stony Brook Foundation, IFR, DIFR, or other non-State funds, which follow separate institutional procedures.

All State-funded single, sole source, and emergency procurement requests must be submitted to the Procurement Office through the University’s electronic procurement system (Jaggaer).

Policy:

If the required commodity or service cannot be obtained via a State preferred source, a State contract or a Local contract, the University requires a competitive procurement process demonstrating price reasonableness for all purchases regardless of dollar value when using State funds. When competition is not feasible due to either the existence of an emergency or the single or sole source nature of a commodity or service, the University must document in the procurement record the reason(s) why competition is not feasible and justify the selection of the vendor and establish the reasonableness of the pricing.

The NYS Office of the State Comptroller (OSC) and NYS law provides the following guidance in this regard:

The University is required to conduct formal competitive procurements to the maximum extent practicable.
Single or sole source procurements for commodities or services, or procurements made to respond to emergencies arising from unforeseen causes, may be made without a formal competitive process and shall only be made under unusual circumstances and shall include a determination by the University that the specifications or requirements for the purchase have been designed in a fair and equitable manner. The University shall document in the procurement record the bases for a determination to purchase from a single or sole source, or the nature of the emergency giving rise to the emergency procurement. An example of substantiating a sole source procurement would be written documentation detailing the unique nature of the requirement, how it was determined only one vendor could meet the need, and how it was determined the price is reasonable.
The University shall minimize the use of single source procurements and shall use single source procurements only when a formal competitive process is not feasible. The University shall document in the procurement record the circumstances and the material and substantial reasons why a formal competitive process is not feasible. An example of substantiating a single source procurement might be written documentation detailing prior substantial experience of the vendor in provision of the commodity or service customized to the University environment or a certain service that only one vendor provides in addition to the service or technology being procured. The term of the single source procurement contract shall be limited to the minimum period of time necessary to ameliorate the circumstances which created the material and substantial reasons for the single source award. Not later than thirty (30) days after the contract award, the University shall, for all single source procurement contracts, make available on its website a summary of the circumstances and material and substantial reasons why a competitive procurement is not feasible.
For procurements that exceed the University's single/sole source discretionary authority ($125,000.00) the resulting OSC approved Contract Reporter Exemption Request (CRER) / Contract shall be limited to the minimum time necessary to ameliorate the circumstances which created the request. The CRER must be approved by OSC prior to submitting the contract to OSC for approval. If the University receives exemption from advertisement it is still required to publish a notice of the contract award in the NYS Contract Reporter. The notice must include the name of the contract awardee and be placed as soon as practicable. *It should be noted that an exemption request and subsequent OSC approval is required for anything $50K and above if it was not procured through a competitive bidding process.

Procurement Justification Requirements

For each request for a single/sole source or emergency procurement, provide the following information to the Procurement Office:

Describe what is being procured; include a detailed description of the need for the commodity or service.
Provide a detailed explanation as to why a competitive procurement is not feasible (examples might include a legislative or Executive Order implementation requirement). Describe the material and substantial circumstances requiring the need for a single/sole source procurement.
Describe how the commodity/service/vendor selected is unique in characteristics in comparison to other similar commodities/services/vendors and explain how such uniqueness is a fundamental part of the University's form, function and utility needs. Include an explanation detailing what alternatives were considered and why competition is not feasible.

For emergencies, describe the nature of the emergency and confirm that the procurement is limited to addressing only the emergency nature of the problem and that a follow-up competitive procurement(s), where practical and possible, will be conducted to fully address the resolution of the emergency event. Provide a declaration of emergency issued by the head of the University or designee.

Price Justification Requirements

Notwithstanding the single/sole source or emergency nature of the requested procurement, the University needs to establish that the price paid for the commodity or service is fair and reasonable. Accordingly, provide information to the Procurement Office that demonstrates the reasonableness of the proposed pricing.

All requests must include:

Description of the commodity or service being procured;
Explanation why competition is not feasible;
Description of how the vendor or product is unique and fundamental to University needs;
For emergencies: a declaration of emergency issued by the President or designee confirming that the procurement is limited to addressing the immediate need.

Acceptable methods of demonstrating price reasonableness include, but are not limited to:

Cost vs. benefit in monetary terms
Purchases made by other NYS agencies
Purchases made by other states
Purchases made by similar facilities
Discount from list prices
OGS pricing
Historical cost
Manufacturers published price list
Manufacturing costs plus profit
Cost comparisons to similar projects, etc.
Average weighted bid prices or similar average costs in a region
A statement from the vendor documenting that such charges to the State are better, equal to or lower than that charged to other government agencies
A description of the due diligence process
Comparison to similar regions, other providers, like entities or prior year costs

Advertising Intent to Purchase in Excess of $50,000.00

Per SUNY Policy 7553:

“Campus procurements for each $50,000 or more exempted from publication in the NYSCR:
- Sole Source, Single Source, and Emergency Procurements for $50,000 or more:
  - Where publication would otherwise be required, but is not feasible due to the sole source, single source or emergency nature of a commodity or service, the campus must make a prior written request for exemption and provide supporting documentation to OSC, in accordance with the Guide to Financial Operations.
  - For emergency purchases, subsequent to approval by a campus senior officer as so determined by the campus chief administrative officer, a verbal request for approval of an exemption, followed up with a written request, may be made to OSC, which will respond verbally as soon as practicable, and follow up with a written confirmation of its determination.
  - Campuses receiving an exemption from publication must subsequently publish a notice of either the letting or award of the purchase/contract, and the reasons for such exemption, in the NYSCR. For purchases/contracts which received an exemption, and which require OSC approval, the campus must provide to OSC, prior to OSC approval, proof that the campus has requested the Empire State Development agency to publish the notice of exemption in the NYSCR, and a confirmation that no protests have been received after waiting 10 business days from the post-advertisement announcement in the contract reporter.
  - The notice should be placed as soon as practicable. Campuses granted an exemption must maintain documented proof of compliance with the foregoing and, per SFL §163.10(b)(ii), must, not later than thirty days after the contract award, post on the campus website, a summary of the circumstances and reasons why a competitive procurement was not feasible.
- commodities or services approved by the NYS Procurement Council from NYS Preferred Sources (as identified in NY State Finance Law 162);
- from OGS' Centralized Contracts; and,
- from established SUNY System-wide Contracts”

The President has designated the following individuals authority to review and approve single/sole source procurements:

Associate Vice President of Procurement
Director of Strategic Procurement
Assistant Director of Sourcing Category

Workflow & Responsibilities

Department/Requester: Completes the Single/Sole Source Justification Form in Jaggaer, attaching supporting documentation and draft specifications.

Procurement Analyst: Reviews justification, validates price reasonableness, and ensures compliance with OSC and SUNY requirements.

Category Manager/Contract Officer: Confirms supporting documentation, market research, and feasibility of competition.

Director or Associate Vice President for Procurement: Final approver of the justification and authority to certify procurement record completeness.
Procurement Officer: Publishes Contract Reporter advertisement or exemption, as required, and routes contract for OSC approval if above the discretionary threshold.

Definitions:

Emergency: An urgent and unexpected requirement where health and public safety or the conservation of public resources is at risk.

Local Contract: Commodities purchased via Consortia or Group Purchasing Organization (GPO) contracts as outlined in the NYS Procurement Council's Consortia Purchasing Guidelines (Rev. September 2009). Campus let service contracts less than $250,000 in value.

Single Source: A procurement in which two or more vendors can supply the required commodity or service, but material and substantial reasons exist to award to one specific vendor (e.g., continuity of service, integration with existing systems, or unique expertise).

Sole Source: A procurement in which only one vendor is capable of supplying the required commodity or service. The unique nature of the requirement and determination of why no other vendor could provide the commodity or service is required as part of a written justification.

Contact:

Additional information about this policy is available here:

Procurement Office
Research and Development Park, Building 17
Stony Brook, NY 11794-6000

(631) 632-6010