Completing the Sole Source Justification Form

Topic

This article will provide guidance on when and how to complete the Sole Source Justification Form for purchases made on behalf of the university.

Why is a Sole Source Justification form required?

• Effective March 12, 2024, the University of Michigan Standard Practice Guide, SPG 507.01, requires that all transactions of $50,000 and greater be competitively bid and the revised SSJ form should be used.  Prior to March 12, 2024, the competitive bidding threshold remains at $10,000.  
• Federal awards must adhere to the standards set forth in 2 C.F.R. § 200.320(c) in the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, as adopted by the U.S Department of Justice.
• As a leading research institution, U-M is audited by various entities – the SSJ form and supporting documentation are critical components to proving compliance.

When is a Sole Source Justification form required?

• When a purchase or agreement of $50,000 and greater is awarded outside of a competitive bid process and does not qualify as an exemption.
• For more information, refer to SPG 507.01, Section XII.

Description

Overview of Steps – click on each step for more information

1. Download the Form
2. Complete the Form
3. Obtain Department Approval
4. Submit the Form and all supporting documentation to Procurement Services
5. Procurement Review 

Additional factors that may impact the time needed to thoroughly review the request include but may not be limited to:

• Estimated value of purchase
• Degree of impact on campus or UM-Health
• Degree of compliance risk (access to university data, access to patient data, restricted commodity, etc.)

Units must not create or attempt to create sole source situations through delay or other manipulation of the procurement process.
 

Download the Form

The form can be found:

• Attached to this article
• On the Procurement Services website Forms page under the Purchasing section or by using the website search function

Completing the Form - Department Requester

1. Use Adobe to Complete Form

   An accessible version of the form is available.  If utilizing a screen reader, use the Word version of the SSJ form.

• Download the form and open it in Adobe Acrobat
  • See the Attachments section in this KBA
  • See the Procurement Services website Forms page under the Purchasing section or by using the website search function
• The fields requiring responses are shaded for visibility
• To ensure the approver will be able to use the “Approval” fields, DO NOT use the Adobe Fill & Sign feature
• Type responses in the text fields or click to mark the checkboxes, accordingly

2. Complete Required Fields

The following fields must be completed before the SSJ form is submitted:

• Justification Type (Check any/all boxes that may apply)
  • Note that proprietary materials could encompass items obtained from a manufacturer, producer, or distributor that has exclusive ownership rights such as a patent, copyright, or information that prevents other suppliers from providing a like item, service, function or acceptable substitute. Maintenance or service from the Original Equipment Manufacturer (OEM) or an OEM authorized service center.
  • If choosing the option "Supplier is specified by name in an awarded contract or grant", the grant must have been awarded, the supplier must be listed by name in the grant, and the page of the awarded grant (not the grant application) that specifies the supplier must be included as supporting documentation
  • Emergency requests include but are not limited to breakdown of essential equipment, building systems or an emergent facility condition which could result in damage to or loss of property, or where human or animal life is endangered.
• Requested Good(s) and/or Service(s) Description
  • Provide detailed description of the requested good(s) and/or service(s)
  • Include any product/technical requirements that purchase/agreement will fulfill
• Estimated Value
• Supplier Name
• Supplier Justification
  • Provide a detailed and technical explanation of proposed supplier’s unique ability to offer the requested good(s) and/or service(s)
  • Specify why the proposed supplier is the only company that can meet the university’s requirement and/or need
  • Identify any other supplier that offers similar good(s) and/or service(s), plus one or both of the following:
    • The condition that limits the purchase/agreement to the proposed supplier for the requested good(s) and/or service(s) (e.g., performance risks, compliance issues, licensing, etc.)
    • The significant advantage that the proposed supplier has over any other supplier that offers similar good(s) and/or services (e.g., technological superiority, technical expertise, etc.)
  • Included relevant materials from awarded grant (not application) requirement that specify the proposed supplier
  • Do not base request on a particular product specification when such specification is not a requirement
  • Do not base request on cost alone
• Cost Justification
  • Provide supporting documentation that due diligence has been performed to ensure that the university is receiving fair and reasonable pricing
  • Acceptable forms of supporting documentation include but are not limited to:
    • Quotes from other suppliers
    • Documentation of web search results
    • Invoices/similar purchase history
    • Comparable pricing for other institutions
    • Relevant pages out of an awarded grant (could be a combination of the grant application and Notice of Award)
    • Relevant materials displaying sponsor requirements of a specific supplier
• Requestor Name, Title, Signature, Date, and Department/Organization

Avoid generalities or unsupported conclusions that can easily be challenged or disproved. If any required fields are left blank or marked “N/A,” the request could be denied.

3. Complete Optional Fields (if possible)

The following fields are optional:

• U-M Supplier ID (if known)
• Requisition # (if available)

4. Prepare Supporting Documentation

Refer to the Cost Justification steps above for examples of supporting documentation. If the request does not include supporting documentation, the buyer may deny the request.

5. Send Completed Form to Department Approver

• Carefully read the “Requestor Acknowledgement” before adding Name, Title, Department/Organization, and Date.
• Provide Signature by typing name. DO NOT use the Adobe Fill & Sign feature.
• Save the completed form, and send it to the department approver for their signature.
   

Completing the Form - Department Approver

Review, Sign, and Return Form to Requestor

• Download the form, and open it in Adobe Acrobat
• Carefully review the completed SSJ form and all supporting documentation.
• Add Name, Title, and Date to the “Dean, Director, Department Head, or Associate Hospital Director Approval” section.
• Provide Signature by typing name. DO NOT use the Adobe Fill & Sign feature.
• Save the completed form, and return it to the requestor so they may submit their request for buyer approval.

Submitting the Form

Submit your sole source request according to the table below. Be sure the SSJ form is complete, signed by a department approver, and accompanied by supporting documentation.

Additional Information

The following factors may impact the time needed to thoroughly review the request:

• Estimated value of purchase
• Degree of impact on campus or UM-Health
• Degree of compliance risk (access to university data, access to patient data, restricted commodity, etc.)

Units must not create or attempt to create sole source situations through delay or other manipulation of the procurement process.