Federal

• A sole source contract may be used if the supply, construction item or service is federally exempt from the competitive procedure. This, and any conditions allowing for a sole source contract, must be put in writing by the contracting officer.
  
  

Cost

• A sole source contract is possible if the cost of the construction item, supply or service is less than your state has dictated for small, no-bid procurements.
  
  

Repair

• Repair, calibration or modification of a product by the product's manufacturer are services that do not need bids as long as the original contract states that bidding is not necessary.
  
  

Other Reasons

• Sole source contracts are possible when this type of contract is in the best interest of the state, or if putting it up for bids is not feasible.
  
  

Consideration

• Before a sole source contract is finalized, legal counsel must certify it as an appropriate contract.