PURCHASE ORDER
DESK PROCEDURES
PO DOCUMENT TYPE
DESK MANUAL FOR DOCUMENT APPROVERS
REVIEW/APPROVAL CRITERIA FOR FAMIS FINANCIAL DOCUMENT TYPE – PO
INTRODUCTION
This desk manual highlights the essential information for department approvers to consider
when reviewing purchase requisitions and purchase orders. It describes the review and
approval criteria to ensure compliance with the City’s policies and procedures.
WHAT IS A PURCHASE REQUISITION AND PURCHASE ORDER (PO)?
Departments issue purchase requisition requests to procure goods or services to City
Purchasing. Requisitions leading to the creation of standard purchase orders go through the
review and approval path of the requisitioning departments with final approval by authorized
Purchasing staff. Approved departmental requisitions in the City’s Financial Analysis and
Management Information System (FAMIS) Purchasing become purchase orders.
Purchase order requisition is used to purchase commodities as opposed to the procurement of
personal services, or leasing or renting equipment. Requisition is not an actual contract but a
request to Purchasing to enter into a contract. When the requisition is entered into FAMIS
Purchasing System, funds are pre-encumbered. The issuance of a standard purchase order
liquidates the requisition and creates an encumbrance in FAMIS. Certification of available
funds for all purchases, contracts, and other obligations is done by posting an encumbrance
transaction in FAMIS.
Departments should familiarize themselves with procurement-related sections of City Codes,
such as the Charter, Administrative Code, Annual Appropriation Ordinance, year-end
instructions, or special directives or guidelines from the Office of Contract
Administration/Purchasing and the Controller’s Office.
I.
TYPES OF REQUISITION
A. Requisition – Bid – Purchase Order
B. Requisition – Bid – Blanket Purchase Order – Purchase Order
C. Requisition – Purchase Order
Bidding is not required on the following categories of purchases:
1) Items covered under the conditions of a “Term Contract” - concentrates the City’s
buying power by consolidating purchases and promoting standardization of items.
Purchasing already conducted the bidding and awarded the contract to a vendor.
2) Items with a total price of $10,000.00 or less – Regulation 21.5A (Appendix A)
3) No other source – Regulation 21.5B (Appendix B)
4) Certain perishable foods – Regulation 21.5C (Appendix C)
5) Proprietary articles – Regulation 21.5D (Appendix D)
6) Contract awarded by the State of California – bidding has already been conducted
by the State.
7) Reciprocal buying agreements with other public agencies in the State of California.
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REVIEW/APPROVAL CRITERIA FOR FAMIS FINANCIAL DOCUMENT TYPE – PO
II.
PURCHASES NOT HANDLED VIA PURCHASE REQUISITIONS
A. Construction services
B. Professional services
C. Leasing or rental of equipment
D. Travel and training expenses and reimbursements
E. Conference and registration fees
F. Employee related expenses
G. Organization memberships, dues & subscriptions
H. Postage
III.
CREATING, REVIEWING, AND APPROVING REQUISITIONS
Departments should ensure requisitions have accurate information and compliance with
procurement requirements. If the requisition is not properly completed, the department will
experience delay and/or rejection of the requisition.
Valid Match Types
Ensure appropriate input of valid match type and document level matching. Progress
match type is used for one commodity line item such as professional services while 2way match type is commonly used for supplies and equipment where there are at least
two commodity line items. Document level matching is either 10% or $1,000 tolerance
(whichever is less), or no tolerance. Proper selection of document level matching is
critical since it puts restriction on invoice payment. If the matching chosen is no
tolerance, FAMIS Purchasing System will not allow payment of an invoice that is more
than the amount on the purchase order. If payment exceeds the purchase order amount,
additional steps need to be taken, e.g. a change order to modify the amount, cancel the
PO, or reissue a new PO. This will consequently delay payment of the invoice.
MATCH
TYPE
AA
AB
2A
2B
DESCRIPTION
RQ
PO
Progress match type; document level matching, 10% or
$1,000 tolerance, whichever is less
Progress match type; document level matching, no tolerance
2-way match type; document level matching, 10% or $1,000
tolerance, whichever is less
2-way match type; no tolerance
N/A
Y
N/A
N/A
Y
Y
N/A
Y
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REVIEW/APPROVAL CRITERIA FOR FAMIS FINANCIAL DOCUMENT TYPE – PO
Valid Purchasing Authority (PA)
The purchasing authority entered on the document must be appropriate to the goods or
services being procured. If the purchase is a proprietary item such as medicines and
drugs, the appropriate PA should be PROP5. If the commodities or services can only be
procured from one source, then PA should be NOS. This will assist the Purchaser in
selecting the proper procurement mechanism.
How purchasing solicits bids depends on the urgency and amount of the need. Purchases
over $50,000 must be advertised in the City’s official newspaper, in accordance with
Section 21.6 of the Administrative Code. Purchases under $50,000 but above $10,000 do
not need to be advertised but written bids are submitted. Purchases under $10,000 may
solicit bids by telephone or by using a quotation form. For “emergency” purchases,
Purchasing handles the bidding expeditiously and does not need to be advertised.
Term contracts are pricing agreements established by Purchasing for goods and services
the City uses in large amounts. If items requested for purchase are covered by term
contracts, departments should reference the term contract number in the purchase
requisitions.
Proprietary articles should be procured in accordance with the Purchaser’s regulations.
Purchasing uses the terms “proprietary” and “no substitute” as purchases where no
alternate brand or model will be considered or accepted. Although an item may be
considered proprietary, it may still be subject to competitive bidding if there is more than
one source of supply for that item. Departments need to obtain approval from the Office
of Contract Administration (OCA) and Human Rights Commission (HRC) on sole source
contracts. All sole source purchases must be justified with documentation from the
requesting department and must be approved by authorized OCA and HRC officials. The
documentation must clearly state why the commodity or services are only available from
the single source. Explanations shall also be provided in cases where (1) only one
prospective vendor is willing to enter into a contract with the City, (2) item has design
and/or performance features that are essential to the department, and no other source
satisfies the City’s requirements, and (3) provide proof on licensed or patented good or
service.
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Refer to screen PCHL5750, Miscellaneous Tables, File Identification PA in FAMIS
Purchasing for the different purchasing authority codes with description.
PA CODES DESCRIPTION
BID
Bid
OMP
Open Market Purchase
NOS
No Other Source
TC81916
Term Contract No. 81916, Safety equipment and supplies
TC95218
Term Contract No. 95211, Computer hardware, software, peripherals,
maintenance
PROP1
Charts, globes and maps
PROP2
Books, magazines, pamphlets and periodicals
PROP3
Specialized equipment, materials and supplies for instructional
purposes. Specialized educational tests and testing services.
PROP4
Fine arts; music; plays; works of art; films; audio and video cassettes
PROP5
Medicines and drugs
PROP6
Medical, surgical and dental equipment; instruments; prosthetic devices,
special supplies
PROP10
Animals
PROP12
Repairs for equipment including service and parts when repairs must be
done by the manufacturer, the installer of equipment or system, or when
repairs by others would void the warranty.
Delivery Date
Ensure realistic delivery date of commodities being procured since timing can be critical
to protect the City’s interests and legal position.
Freight Terms
The City prefers the use of Free on Board (FOB) destination where title and risk of loss
pass to buyer upon receipt of shipment, i.e. the shipper is responsible for initiating claim
against carrier. FOB origin or ship point is seldom used because a title and risk of loss
pass to buyer when goods leave shipper’s dock, i.e. buyer initiates claim against carrier.
Payment Terms
Departments should take advantage of prompt payment discounts offered by vendors.
The preferred term is 2%, 30, net 31, which means that the vendor is offering a 2%
discount if the City pays the invoice within 30 days, and full payment after 30 days.
Commodity Code
Select the proper commodity code that is related to the expenditure sub-object. This
facilitates good record keeping and provides accurate statistical reporting.
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Refer to table of commodity codes on screen PCHL1100 in FAMIS Purchasing.
PCHL1100 V5.1
LINK TO:
CITY AND COUNTY OF SAN FRANCISCO--NFAMIS
COMMODITY TABLE INQUIRY
S COMMODITY NAME
COMPUTER CABLE->PC;SUPPL,
COMPUTER GRAPHICS/IMAGE RENDERING
COMPUTER HARD/SOFTWARE/SU
COMPUTER HARDWARE,SOFTWARE,SUPPL
COMPUTER HRDWR,MINI->MNC;
COMPUTER HRDWR,MNFR->MFC;
COMPUTER HRDWR,PC ->PC;
COMPUTER PAPER,CONT->CMP;
COMPUTER RECYCLING/DISPSL
COMPUTER SFTWR,CUSTOM
COMPUTER SFTWR,MINI->MNC;
COMPUTER SFTWR,MNFR->MFC;
COMPUTER SUPPL,MINI->MNC;
COMPUTER SUPPL,MNFRM->MFC
COMPUTER SUPPL,PC->PC;SUP
COMPUTER SUPPORT->MFC;
COMMODITY ID
INV
ITEM
BPO
ITEM
SPECS
EXIST
9205-91-04
7360-25
9205
9205
9205-05-10
9205-06-10
9205-99
9700-07-04
7320-40-60
9205-01
9205-05-20
9205-06-20
9205-05-30
9205-06-30
9205-91
9205-06-90
N
N
N
N
N
N
N
N
N
N
N
N
N
N
N
N
Y
Y
Y
Y
N
N
Y
N
Y
Y
Y
Y
Y
Y
Y
Y
N
N
N
N
N
N
N
N
N
N
N
N
N
N
N
N
Vendor
Vendor selected should comply with the City’s procurement requirements, e.g. business
tax, Administrative Code’s Chapter 12B Non-discrimination in Contract Ordinance,
Chapter 12D MBE/WBE/LBE Ordinance.
The vendor number and suffix entered shall point to the proper vendor and vendor
address name and address. This ensures that all contract documents, payments and
correspondences are sent to the correct vendor.
Refer to vendor compliance screen PCHL9560 in FAMIS Purchasing.
PCHL9560 V5.1
LINK TO:
CITY AND COUNTY OF SAN FRANCISCO--NFAMIS
VENDOR CLASS/STATUS CODE
VENDOR NUMBER: 18814
VENDOR SUFFIX:
01
S
TURNER CONSTRUCTION CO
CLS
STA
DESCRIPTION
BUS
FO3
HB
HBC
HBN
TAX
YES
REQ
YES
YES
EXP DT&CERT NUM
HRC FORM3 PRIOR
REQR 12B COMPLY
COMPLIES
COMPLIES
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SRT
FRQ
DATE-1
DATE-2
06/30/2009
PRE
F%
CERTIFICATE
044545
06/05/1997
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Effective Date
Effective date shall correspond to the open fiscal period in FAMIS Accounting. Review
the correctness of input to ensure that a document points to the correct fiscal period
especially during fiscal year-end when two fiscal years are open.
Index Code
The index code should point to the proper cost center where funds are budgeted and
available for the same purpose.
Sub-object
The sub-object should point to the proper and budgeted expenditure account that relates
to the commodity code.
Project/Project Detail
Project and project detail should point to the proper and budgeted project account.
Grant/Grant Detail
Grant and grant detail should point to the proper and budgeted grant account.
OCA/Purchasing and grant sub-recipients must be informed of the funding source, if
funded by federal, state or local grant, to ensure compliance with grant’s procurement and
contracting requirements.
IV.
COMMON PROBLEMS WITH REQUISITIONS
A. The requisition is not signed.
B. A single order is split into two requisitions.
C. Items on a term contract are combined with items not on a term contract, or items on a
term contract with one vendor are combined with items with another vendor.
D. Unlike commodities are combined on the same requisition.
E. Incomplete description of the items to be ordered.
F. Manufacturer’s literature is not attached.
G. Incomplete accounting information, such as index code.
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H. The equipment’s budget number is missing.
I. The requisition does not contain a reference as to whether the equipment is new or for
replacement.
J. An example or sample is not attached for specially designed items (e.g. badges, decals,
clothing).
K. Incomplete delivery instructions for heavy or bulk items. Purchasing and bidders need to
know if there is a receiving dock, the delivery point is up two flights of stairs, or there is
elevator access.
L. The requisition is submitted too close to the end of fiscal year to be processed before the
year-end.
V.
PURCHASE ORDERS
A. Creation of the Purchase Order – Purchasing
Once Purchasing establishes prices and approves the requisition, the purchase order is
created in FAMIS Purchasing for interface with FAMIS Accounting.
B. Encumbrance of Funds
Certification of availability of funds is achieved through an encumbrance when the
purchase order is posted in FAMIS.
C. Placing the Order - Purchasing
Purchasing sends the approved and signed purchase order to the vendor.
D. Receiving the Order and Invoice – Department
The department receives the order and the invoice, and processes the invoice payment in
FAMIS.
E. Paying the Invoice – Department
After the department reviews, approves, and posts the invoice and voucher in FAMIS
Purchasing, the voucher is interfaced into FAMIS Accounting, a check will be generated
the next day or by the due date, and mailed to the vendor.
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VI.
CANCELLING A PURCHASE ORDER
Certain steps shall be taken quickly to cancel a purchase order after Purchasing has mailed it
to the vendor. Reasons to cancel an order include:
A. Item is no longer needed
B. Requirements have changed
C. Vendor fails to perform after you have given sufficient notification
D. Vendor cannot meet the required delivery date, and the vendor’s fallback delivery
schedule is not acceptable
Consult with the City Attorney’s Office to review the City’s legal position before calling a
vendor to cancel the order. It should be noted that once the City has placed an order with a
vendor, the City has entered into a legally binding contract. Options to cancel the contract are
limited, and they may depend on the good will of the vendor. Notify the vendor immediately
and ask them to accept cancellation of the purchase order. Then process a document cancellation
in FAMIS Purchasing to cancel the encumbrance.
VII.
COMPLIANCE WITH CITY POLICIES, GUIDELINES AND REQUIREMENTS
The following are excerpts from the San Francisco (SF) Administrative Code and City
Ordinances applicable to the purchase of goods and services utilizing the purchase order
procurement mechanism.
A. Chapter 21 of the SF Administrative Code – Acquisition of Commodities and
Services
The Office of Contract Administrative (OCA) promulgates rules and regulations pursuant
to Chapter 21 of the San Francisco Administrative Code. Each contracting department
shall cooperate to the fullest extent with OCA in the acquisition of commodities and
services. Chapter 21 does not apply to contracts for public works or improvements or to
contracts for the purchases, sale or lease of any interest in real property.
B. Chapter 12B of the SF Administrative Code – Non-discrimination in Contracts
Ordinance
It requires contractors not to discriminate in employment and to establish affirmative
action guidelines.
Under this Ordinance, Human Rights Commission (HRC) must review and approve
companies’ workforce breakdown data and, where applicable, affirmative action
requirements, before the City can award contracts to the companies.
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C. Chapter 12D of the SF Administrative Code – MBE/WBE/LBE Ordinance
The goals of the Minority/Women/Local Business Utilization Ordinance are to increase
the opportunities for local businesses which are minority-owned or women-owned to
compete successfully for and to participate in the procurement activities of the City and
County of San Francisco, and to compensate partially for the higher administrative costs
of doing business in San Francisco.
Under this Ordinance, Purchasing and other contracting authorities grant bid or rating
preference to MBE/WBE/LBEs that have been certified by HRC, and fulfill other
responsibilities. Purchasing conducts outreach to potential MBE/WBE vendors, and
publishes a weekly newsletter, “Bid and Contract Opportunities,” which is mailed to all
certified non-profit organizations free of charge and is available to others by paid
subscription.
D. Article 12A of the SF Business and Tax Regulations Code – Business Tax
Registration
Every person or entity doing business in the City and County of San Francisco must
possess a valid Business Registration Certificate from the Office of the Treasurer & Tax
Collector. This code also applies to business located outside of San Francisco that
perform business transactions or services in San Francisco.
E. Video Display Terminal (VDT) Ordinance
Products such as chairs, computer monitors and keyboards, when used under certain
conditions, must comply with the City’s VDT Ordinance, unless the department informs
Purchasing to the contrary.
F. San Francisco Electrical Code
The SF Electrical code requires businesses in San Francisco to sell, and customers in San
Francisco to use, only electrical products which have been tested by an approved testing
laboratory. If a product has not been tested, the seller or user must receive approval from
the Department of Public Works or Department of Building Inspection.
G. Chapter 21G of the SF Administrative Code – Preservative-Treated Wood
Containing Arsenic
Contractor may not purchase preservative-treated wood products containing arsenic
unless an exemption is obtained from the Department of Environment. The term
“preservative-treated wood containing arsenic” means wood treated with a preservative
that contains arsenic, elemental arsenic or an arsenic copper combination, including, but
not limited to, chromate copper arsenic preservative, ammoniacal copper zinc arsenate
preservative, or ammoniacal copper arsenate preservative.
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H. Section 67.24 of the SF Administrative Code – Sunshine Ordinance
Contracts, contractors’ bids, responses to Request for Proposals (RFPs) and other records
of communications between City and persons or firms seeking contracts shall be open to
inspection immediately after a contract has been awarded.
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APPENDIXES
Appendix A - REGULATION 21.5(a): OTHER PURCHASES: COMMODITIES AND SERVICES
LESS THAN $50,000
Appendix B - REGULATION 21.5(b): SOLE SOURCE
Appendix C - REGULATION 21.5(c): PERISHABLE FOODS
Appendix D - REGULATION 21.5(d): PROPRIETARY ARTICLES
Appendix E – SOLE SOURCE WAIVER REQUEST FORM
APPENDIX A
REGULATION 21.5(a): OTHER PURCHASES: COMMODITIES AND SERVICES LESS
THAN $50,000
In reference to Administrative Code §21.5(a), the following are regulations for the acquisition of
Commodities, General Services and Professional Services where the total amount of the transaction
is less than $50,000.
Department Heads and their designees who have complied with Regulation 21.03(a) and have been
delegated by the Purchaser may purchase Commodities and General Services up to $10,000
(including tax and shipping).
Commodities
• $0 - $10,000 – no bidding is required. However, departments are encouraged to solicit written bids
or written price quotations especially from LBEs and select the lowest responsive and responsible
bidder.
For procurement of commodities over $10,000, departments must submit a requisition to OCA.
Purchasing approval is required to authorize purchases; and transactions for these amounts are
covered by regulations delegating signature authority to Purchasing staff.
Formal competitive bidding is required for any amount over $50,000, unless otherwise exempted
under Chapter 21.
General Services
General services are those services that are not professional services. Examples of general services
per Administrative Code §21.02(k) include: janitorial, security guard, pest control, parking lot
attendants and landscaping services.
• $0 - $10,000 – no bidding is required. However, departments are encouraged to solicit written bids
or written price quotations especially from LBEs and select the lowest responsive and responsible
bidder.
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• Over $10,000 but less than $29,000 – Purchasing conducts informal bidding in accordance with
Purchasing and Human Rights Commission requirements.
• $29,000 or more – Purchasing conducts formal bidding in accordance with Purchasing and HRC
requirements.
Professional Services
Professional services are those services which require extended analysis, the exercise of discretion
and independent judgment in their performance, and/or the application of an advanced, specialized
type of knowledge, expertise, or training customarily acquired either by a prolonged course of study
or equivalent experience in the field. Examples of professional service providers per Administrative
Code §21.02(n) include architects, engineers, software developers, attorneys, consultants, physicians
and dentists.
• $0 - $10,000 – no solicitation is required. However, departments are encouraged to solicit written
bids or written price quotations especially from LBEs and select the lowest responsive and
responsible bidder.
• Over $10,000 but less than $29,000 – informal solicitation is required. Departments are to follow
the informal bidding rules established by the Human Rights Commission under Section IV.D of their
rules and regulations.
• $29,000 or more – a formal solicitation is required. Departments are to follow the formal bidding
rules established by the HRC as set forth in the definition of “Good Faith Efforts” of a contract
awarding authority (see Administrative Code Chapter 14B.7).
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APPENDIX B
REGULATION 21.5(b): SOLE SOURCE
Administrative Code §21.5(b) provides that commodities or services available only from a sole
source shall be procured in accordance with the Purchaser’s regulations. It shall be the Purchaser’s
regulations that if a department needs a commodity or service which is unique and known to be
provided by only one vendor/contractor, then only one price quotation is solicited from the single
vendor/contractor. The requesting department must submit documentation to Purchasing justifying
the transaction as a sole source. From time to time, Purchasing may conduct a formal bid to
determine the continuing validity of the sole source determination.
Sufficient Documentation
In submitting “Sole Source Waiver Requests” (See example in Appendix E), the requesting
department must provide a written memorandum and supporting documentation to justify the
request. The memorandum must provide specific and comprehensive information that explains why
the Sole Source Waiver should be approved. Departments are encouraged to consult with the Human
Rights Commission and the City Attorney’s Office prior to submitting the waiver.
The “Sole Source Waiver Request Form” identifies four acceptable justifications for sole source
contracting. In most cases, the department’s justification for making a waiver request should fall
within these parameters. If not, additional space has been provided for departments to submit other
justification. Among the questions and concerns that must be addressed are as follows:
1. Goods or Services are available from only one source – Explain why this is the only product
or service that will meet the City’s needs. Why is this the only vendor or contractor that can
provide the products or services? What steps were taken to verify that the goods or services
are not available from another source? Explain what efforts were made to obtain the best
possible price. Why do you consider the price to be fair and reasonable?
2. Only one prospective vendor is willing to enter into a contract with the City – Explain why
no other vendors are willing to contract with the City. If there are compliance issues, what
have you done to get other possible sources to become compliant? Have you received a
waiver from HRC?
3. Item has design and/or performance features that are essential to the department and no other
source satisfies the City’s requirements – Explain why the design/performance features are
essential. Have you contacted other vendors/contractors to evaluate items/services with
similar features and capabilities? If no, explain why not. If yes, list the suppliers and explain
why their goods or services do not meet the department’s needs.
4. Licensed or patented good or service – Provide proof that the license or patent limits the
availability of the product or service to only one source.
5. Other – Provide justification that would substantiate a sole source waiver for any other
reason.
Finally, the requestor and Department Head, or his or her designee, must be a signatory to the
request. Their signature certifies that they have reviewed the specific sole source waiver request
and agree with the requestor’s justification.
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APPENDIX C
REGULATION 21.5(c): PERISHABLE FOODS
Administrative Code §21.5(c) provides that perishable foods shall be procured in accordance with
the Purchaser’s regulations. It shall be the Purchaser’s regulations that when purchasing perishable
foods, the Contracting Officer shall attempt to comply with competitive bidding requirements of this
Chapter. However, when the situation arises where it is impossible or highly impractical to obtain
competitive pricing because of the nature of perishable foods, i.e., freshness and spoilage of
perishable items, the Purchaser may procure the items in the most expeditious manner. The
Purchaser shall require the requesting department to provide a written justification of the perishable
nature of the items and why competitive bidding should be waived. A copy of the justification shall
be kept on file with the transaction.
APPENDIX D
REGULATION 21.5(d): PROPRIETARY ARTICLES
Administrative Code §21.5(d) provides that proprietary articles shall be procured in accordance with
the Purchaser’s regulations. It shall be the Purchaser’s regulations that purchasing uses the terms
“proprietary” and “no substitute” to mean purchases that are made where no alternate brand or
model will be considered or accepted. The item must be the one described in the current Proprietary
List. Although an item may be considered proprietary, it may still be subject to competitive
bidding if there is more than one source of supply for that item. If the item is put out to bid,
alternate brands and models need not be considered. Purchasing periodically accepts bids for
alternate brands to monitor the appropriateness of continuing to consider certain purchases
proprietary.
All proprietary purchases must be justified with documentation from the requesting department and
must be approved by the Purchaser within his/her approval limits. The documentation must clearly
state why only one make or model will meet the department’s needs.
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APPENDIX E
(Sample only, use the most updated form from the Intranet, under Forms.)
Sole Source Waiver Request
Administrative Code Section 21.5(b) provides that commodities or services available only from a sole source shall be
procured in accordance with Purchaser’s regulations. Purchaser’s regulations provide that, “If a department needs a
commodity or service which is unique and which is known to be provided by only one vendor, then only one price
quotation is solicited from the single vendor. The requesting department must submit documentation to the Purchaser
justifying the transaction as a sole source. From time to time, the Purchaser may conduct a formal bid to determine the
continuing validity of the sole source determination.” (Procurement Instruction 12.06, Exhibit A, Section IX.D, dated April 28, 1989)
Directions: Use this form to justify a sole source transaction. The department requestor must complete the information
below and attach a written memo with appropriate supporting documentation to justify this request. The memo must
provide specific and comprehensive information that explains why the requested transaction should be considered a sole
source. Departments are encouraged to consult with the Human Rights Commission and the City Attorney prior to
submitting this request.
Department: ____________________________________________ Date Submitted:_______________________
Contact: ____________________________________________ Phone: ______________________________
Vendor Name: ____________________________________________ Vendor # ____________________________
Type of Commodity _____ Professional Service _____ Non-Professional Service______
Contract: Other _________________________________________________________________________________
Amount: $ __________________________________________ ADPICS Doc #: ______________________
Describe the product or service:
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
Has the Human Rights Commission granted a sole source waiver on this transaction? ____________________________
If yes, when was the sole source granted? __________________________________ Please attach a copy of the HRC Waiver.
Check the appropriate statement. Attach a memo and documentation to address the questions following each statement.
_____ Goods or services are available from only one source.
Explain why this is the only product or service that will meet the City’s needs. Why is this the only vendor or contractor
that can provide the services or products? What steps were taken to verify that the goods or services are not available
from another source? Explain what efforts were made to obtain the best possible price. Why do you feel the price to be
fair and reasonable? How was this vendor chosen? How long has the vendor been providing goods or services for your
department?
_____ Only one prospective vendor is willing to enter into a contract with the City.
Explain why no other vendors are willing to contract with the City. If there are compliance issues, what have you done to
get other possible sources to become compliant? Have you contacted HRC? Have you received a waiver from HRC?
_____ Item has design and/or performance features that are essential to the department, and no other source
satisfies the City’s requirements.
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REVIEW/APPROVAL CRITERIA FOR FAMIS FINANCIAL DOCUMENT TYPE – PO
Explain why the design/performance features are essential. Have you contacted other suppliers to evaluate items/services
with similar features and capabilities? If no, explain why not. If yes, list the suppliers and explain why their goods or
services do not meet the department’s needs.
_____ Licensed or patented good or service.
Provide proof that the license or patent limits the availability of the product or service to only one source.
_____ Other: _____________________________________________________________________________________
Sole Source Waiver Request
INSTRUCTIONS:
The Sole Source request must be approved before the department makes a commitment to the vendor, and before funds
are encumbered. If the Sole Source request is denied, the department will be advised to conduct a competitive process to
select the vendor/contractor. If the Sole Source request is to extend an existing professional service contract, attach a
copy of the original contract and any prior sole source determinations made by HRC or Purchasing. When processing
professional service contracts and modifications for signature, attach the approved sole source waiver form to the
contract documents.
This form is required for every transaction, contract, or contract modification that the department wishes to be treated as
a sole source. For additional information call the Purchaser assigned to your department.
The Department Head must sign this request before it is sent to OCA-Purchasing.
This Sole Source request is being submitted by:
Department Head Signature:__________________________________________ Date: ________________________
Name of Department:_______________________________________________________________________________
OCA Review and Approval:
Sole Source Approved: ______ Sole Source Denied: ________
Reason for Determination
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
OCA Staff: __________________________________________________________________ Date: _______________
OCA Staff: __________________________________________________________________ Date: ________________
OCA Director: _______________________________________________________________Date:_________________
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