The information may be provided in several ways, either on the SNAP requisition which clearly shows only one supplier can provide what the department needs, a written statement or a business decision. The Buyer checks this item and the appropriate box. If the department sends a separate sole or single source request that is deemed legitimate and sufficient, Procurement checks this item, adds the date, and includes the written statement in the file. For the items covered under these agreements, the supplier is considered a preferred source. In this area Procurement documents how it determined and accepted that the price to be paid is fair and reasonable.
Several methods exist to demonstrate fair and reasonable pricing.
The most common are noted in this section. Where none of the items listed is appropriate, the Buyer should explain the rationale in Notes either on the PD3 form or on a separate memo and include all supporting documents in the file. If Procurement determines the price on the basis of competition among two or more suppliers, this box is checked. If Stanford has entered into a Basic Ordering Agreement with the prospective supplier, where source selection has been justified and price fairness and reasonableness has been determined and documented, that Agreement may serve as the basis for a determination that the price to be paid is fair and reasonable. Basic Ordering Agreements are deemed to contain pricing that is fair and reasonable.