R19-3-535. Sole Source Procurements

A. For the purposes of this Section, the term “sole-source procurement” means a material or service procured without competition when: 1. There is only a single source for the material or service, or 2. No reasonable alternative source exists. B. This Section applies only to sole source procurements, estimated to exceed the amount prescribed in A.R.S. § 41-2535. C. 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 reasonable alternative exists, 2. The name of the proposed supplier, 3. The duration and estimated total dollar value of the proposed procurement, 4. Documentation that the price submitted is fair and reasonable pursuant to R19-3-550, and 5. A description of efforts made to seek other sources. D. The procurement officer shall post the request on the Lottery website 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 procurement 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 reasonable alternative source exists for the procurement need. E. If the sole-source procurement is determined, the procurement officer shall negotiate a contract advantageous to the Lottery. F. The procurement officer shall notify the Director and the Lottery 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 communicated to the Commissioners. The procurement officer shall send notice of the meeting to the sole source. G. The procurement officer shall keep a record of all sole-source procurements.