West Virginia Purchasing DivisionWEST VIRGINIA PURCHASING DIVISION

PROCEDURES HANDBOOK

SECTION 9:  SOLE SOURCE ACQUISITIONS


West Virginia Purchasing Division

Non-Competitive / Exempt List of Commodities and Services

 In accordance with §5A-3-10 of the West Virginia Code:

“...a purchase of and contract for commodities, printing and services shall be based, whenever possible, on competitive bids.”

In accordance with the Code of State Rules 148CSR1-4,

 The Director shall:

 (a) Ensure that purchases and contracts for commodities, services or printing are based on competitive bid where possible.  The Director may establish a list of commodities and services that are not possible to submit for competitive bid. The Director shall approve the list before the beginning of each fiscal year and shall make the list available for public review. Spending unit may purchase the commodities and services on the list directly from the vendor and are not required to have contracts for purchase of those items approved by the Purchasing Division. A spending unit’s request to add commodities and services to the list must be accompanied by written justification and an explanation of why competitive bids are not possible. Nothing in this section supersedes or replaces the Attorney General’s authority to approve contracts as to form.

In accordance with the Legislative Rule and Regulations 148CSR1 [7.5.2-3], the Purchasing Director has the authority to reject sole source requests whenever competition is believed to be available. The spending unit must provide written documentation to the Purchasing Director setting forth the basis for the sole source procurement and the specific efforts made to determine the availability of the other sources.

For sole source purchases under $25,000, written documentation must be included on file at the agency location rather than submit to the Purchasing Division.

The following items comprise the non-competitive/exempt list of commodities and services that may be purchased directly by spending units without advertisement or bid. Purchasing Division approval is not required for these procurements, unless specifically noted. Vendor registration is required for vendors providing these commodities and services; however, the annual fee is waived.

1.        Advertising: Any advertisement placed directly with newspapers, trade magazines, etc. Does not include radio, broadcast television, cable television, etc. Does not include any indirect placement, promotional items, advertising consultant services, broadcast of Lottery prize drawings, etc.

2.         Artwork and Historical Items: Includes purchase of and service to artwork and historical items, i.e. restoring governors’ portraits, refurbishing chandeliers, etc.  Must receive written approval from the Purchasing Division prior to making any purchase.

3.         Attorneys and Law Firms: This exemption includes temporary hearing examiners, administrative law judges and court reporters for any agency. The term of a contract made pursuant to this exemption for temporary hearing examiners, administrative law judges or court reporters shall not exceed one year.  The selection of attorneys and law firms must be pre-approved by the West Virginia Attorney General’s Office. Such pre-approval is not required for hearing examiners, administrative law judges or court reporters; however, approval "as to form" by the Attorney General's Office is required for hearing examiners and administrative law judges. The selection of bond counsel is exempt.

4.         Aviation Fuel: (Excluding bulk purchases for delivery to state dispensing stations) 

5.         Cash Advances: In accordance with the West Virginia Code, §5A-3-17(2), the head of any spending unit, or the financial governing board of any institution, may, with the approval of the Purchasing Director, make requisitions upon the State Auditor for a sum to be known as an advance allowance account, in no case to exceed five percent (5%) of the total of the appropriations for any such spending unit, and the State Auditor shall draw his warrant upon the State Treasurer for such account; and all such advance allowance accounts shall be accounted for by the head of the spending unit or institution once every thirty (30) days or more often if required by the State Auditor or Purchasing Director.

6.         Contracts Between Governmental Agencies: Any contract between a state agency and any other governmental agency (state, local, federal) where no competition is available and the other governmental agency directly or indirectly provides the service. Examples include water line projects with local communities and environmental studies with federal agencies. This does not include piggybacking existing contracts or any contracts with research corporations.

7.         Court Ordered Placements: Children placed by West Virginia courts or the West Virginia Department of Health and Human Resources at various educational and/or behavioral centers.

8.         Employee Expense Accounts and Reimbursements

9.         Entertainers: Individuals and/or groups contracted at the request of the state to entertain or to assist in the production of entertainment.

10.       Fees Imposed by Other Government Entities (i.e., licenses, permits)

11.       Governor’s Mansion Furnishings: Any unique or handmade items used in the mansion purchased with public funds. Includes furnishings donated.  Includes all furnishings that remain in the mansion throughout future administrations. Does not include commercially available items from more than one source.

12.       Grants: State agencies shall use a grant as the legal instrument reflecting a relationship between state government and a local government or other recipient, when competition is not possible, and whenever: (1) the principal purpose of the relationship is the transfer of money, property, services or anything of value to the local government or other recipient in order to accomplish a public purpose of support or stimulation authorized by federal and/or state statute rather than by acquisition, by purchase, lease or barter of property or services for the direct benefit or use of the state government; and, (2) no substantial involvement is anticipated between the executive agency acting for the state government and the local government or other recipient during the performance of the contemplated activity. Grants are targeted for specific recipients and competition is not available.

13.       Hospitality: Hospitality expenses include food, beverages, facility rental, entertainment and other expenses relating to conducting state business. A Request for Hospitality Form TMO 3.0 must accompany the invoice regardless of the amount. Purchasing Division does not need to approve TMO.3

14.       Media License Fees: (Program license fees for radio or television)

15.       Medical Fees: Fees for medical services (behavioral and physical) from individual doctors, dentists, clinics, hospitals, audiologists, county medical examiners, physical and occupational therapists, behavioral counseling and evaluations, etc. for individual  patients, inmates, students and clients where the state is responsible for payment. This does not include inmate health care management, hospital management, consulting services or agreements to provide services for groups of patients, inmates, students or clients, etc. for state agencies. Also included in this exemption is body transportation for unidentified corpses and indigent burial expenses.            

16.       Medical Fees, Emergency Trauma Reimbursement: Provides for the Department of Health and Human Resources to remit fees to state of West Virginia Level I or Level II Emergency Medical Services trauma physicians for services rendered to supplement insurance premiums and other costs when required to maintain certain levels of certification. Limited to qualified trauma physicians that meet the overall trauma performance requirements determined by the Office of Emergency Medical Service guidelines. The physicians to be contracted with will have credentials to meet the identified needs of a Level I or Level II trauma center.          

17.       NASCAR: NASCAR licensing or license plate manufacturing for West Virginia Division of Motor Vehicles only.

18.       Postage: (Stamps, metering, overnight services, i.e., Federal Express, Airborne, UPS, etc.). This does not include postage available from statewide contracts.

19.       Professional Association Dues

20.      Railroad Car Hire Fees: National association fees required from all railroads to monitor the location and use of railroad cars for the owners. Bar codes on railroad cars are scanned into a computer database which in turn notifies the owner of the location and remits the user fees to the appropriate owner.

21.      Resale Items: Items that are acquired specifically for resale by the state agency to the general public (or for use by Correctional Industries in producing items for resale) should be selected on the basis of quality and delivery constraints due to customer demand.

22.      Shipping Charges and Freight: (Not connected in any way to a formal encumbered purchase order or agency purchase order for the delivery of goods)

23.      Software Maintenance: All non-competitive proprietary software licensing and maintenance must be pre-approved by the Office of Technology.  

24.       Student Activities: (Lecturers, entertainers, athletic events, referees, teachers [for services requiring teacher certification by the West Virginia Department of Education], etc.)

25.      Investigative Services; Subject Matter Experts and Witnesses: For administrative hearings and legal procedures. Does not include agency consulting services nor ex‑employees retained by their agency or hired by another agency.

26.      Subscriptions and publications (newspapers, textbooks and publications – electronic and hard copy – purchased directly from the publisher.)

27.      Training Activities: Lecturers, honorariums, copyrighted test and training materials, test monitors/examination proctors, etc., where competition is not available.

28.       Tuition, Stipends, Accreditations and Registration Fees

29.      Utilities (Regulated Services by the Public Service Commission): (Natural gas, water, sewage, electric, telephone, garbage, cable television service, connection fees, trash hauling and dumpster rental [if only one PSC approved hauler is in the area]). Agency Purchase Order, WV-88 or Agreement, WV-48, is required for cable service and trash hauling in excess of $2,500 per year. Propane gas and coal must be competitively bid.

30.     Department of Agriculture Exemptions: Approved exemptions for the West Virginia Department of Agriculture include purchase of livestock for sale to state institutions and the acquisition of bees for repopulation purposes.

31.     Court Ordered Payments: A copy of the court order must be maintained in the purchasing file, unless sealed and restricted by the respective judge. If the order is sealed and restricted, an explanation must be maintained in the purchasing file referencing the court order. Court order payments are exempt from the vendor registration requirement.

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