(a) A contract may be awarded for a supply, service, or construction item without competition when, prior to commencing negotiations:

(1) the Chief Procurement Officer, the Director of Public Works, the head of a purchasing agency, or a designee of either officer above the level of the Procurement Officer, determines in writing that there is only one (1) source for the required supply, service, or construction item; and

(2) the Chief Procurement Officer, the Director of Public Works, the head of a purchasing agency, or a designee of either officer above the level of the Procurement Officer, prepares a package to market and present to prospective vendors or service providers, which shall be based on the determination of need and market research, and contain a purchase description, evaluation factors, delivery or performance schedule, inspection and acceptance requirements, the contract terms and conditions, and any warranty, bond, or other security requirement of the sole source contract.

(b) A sole source contract shall not exceed a term greater than one (1) year, with four (4) successive annual options to renew. Any option to renew a contract under this Section shall not exceed a term greater than one (1) year. An option to renew may be exercised only by the government when, at the time to be exercised, the Chief Procurement Officer, the Director of Public Works, the head of a purchasing agency, or a designee of either officer above the level of the Procurement Officer, determines in writing that there is only one (1) source for the required supply, service, or construction item.

(c) Prior to and as a condition of making any determination in writing required under Subsections (a)(l) or (b) of this Section, the purchasing agency shall prepare a written report for the person making such determination, which shall include a detailed analysis of the minimum needs of the government upon which the

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contract is based, findings from thorough market research, and a conclusion that will certify accurate and complete necessary data to support their recommendation that there is no other source that will satisfy the minimum needs of the government. The report must be signed by the person or persons conducting the market research and analysis, and shall be made part of the procurement record.

(d) A sole source contract shall not be awarded or executed unless and until the Chief Procurement Officer, the Director of Public Works, the head of a purchasing agency, or a designee of either officer above the level of the Procurement Officer, has determined in writing that the contract price is fair and reasonable and consistent with applicable regulations. Such determination shall include relevant cost and price information from the sole source and comparable or substitute supplies, services, or construction items.

(e) The purchasing agency shall publish a notice in a newspaper of general circulation on Guam, and on its website, within fourteen (14) calendar days of awarding any contract under this Section, in excess of Fifty Thousand Dollars ($50,000). The notice shall include the names of the purchasing agency and awardee(s), the contract award amount, term, and the nature of the contract.

SOURCE: GC § 6959.4. MPC § 3-205. Amended by P.L. 36-070:2 (Dec.
27. 2021) effective 90 calendar days after enactment pursuant to P.L. 36-
070:3 (Dec. 27, 2021).