Or. Admin. Code § 177-038-0070 - Source Selection Methods

(1) "Buy Decision" means the decision to buy Goods or Services through socio-economic programs, agreements, or the open market.

(2) The Lottery may make its Buy Decision in the priority order set forth in sections (a) through (c) below. If a higher priority source can fulfill the needs of a particular procurement, the Lottery may procure through that higher priority source and may elect not to procure through a lower priority source.

(a) Inmate Labor: Procurements of Goods or Services of Oregon inmates pursuant to the Oregon Constitution, Article I, Section 41.

(b) Price Agreements: This rule applies to Price Agreements that were acquired using a competitive approach equivalent to the source selection methods described in OAR 177-038-0070(3). Price Agreements administered by State of Oregon through its Department of Administrative Services, Federal General Service Administration (GSA) federal programs, and Price Agreements entered into and administered as Cooperative Procurements are examples of Price Agreements that may be used by the Lottery. The use of a Price Agreement promotes economy and efficiency through volume and strategic purchases.

(c) Lottery Procurement: Procurements conducted by Lottery pursuant to these Division 38 rules.

(3) If the Lottery determines that it will conduct a procurement to acquire Goods, Services, or both, the Lottery shall Award a Contract for such Goods or Services by one of the following sourcing methods:

(a) Small Procurements: Lottery may Award a Contract for Goods or Services with an estimated Contract Price of $50,000 or less without a competitive process. The Lottery may Award a Contract under this subsection in any manner deemed practical or convenient by the Lottery, including direct selection or Award. A procurement may not be artificially divided or fragmented so as to constitute a Small Procurement under this rule.

(b) Intermediate Procurements: Lottery may Award Contract for Goods or Services with an estimated Contract Price exceeding $50,000 but not in excess of $150,000 after seeking three competitive Offers. The Lottery shall keep a written record of the sources of the Offers received. If three Offers are not reasonably available, fewer will suffice, but the Lottery shall make a written record of the effort made to obtain three Offers. If Lottery, in good faith, estimated that the Price resulting from the procurement would be equal to or less than $150,000, and learned thereafter that all of the Offers exceeded $150,000, Lottery may Award a Contract; provided that the Contract Price may not exceed $165,000. A procurement may not be artificially divided or fragmented so as to constitute an Intermediate Procurement under this rule.

(c) Large Procurements: Lottery may Award a Contract for Goods or Services with an estimated Contract Price that exceeds $150,000 after seeking three written solicited competitive Offers provided in response to a written Solicitation Document issued by the Lottery. The Lottery shall keep a written record of the sources of the Offers received. If three Offers are not reasonably available, fewer will suffice, but the Lottery shall make a written record of the effort made to obtain the Offers.

(d) Sole Source Procurements: The Lottery may Award a Contract for Goods or Services without a competitive process when so directed by the Commission, or if the Director, or a person designated in writing by the Director, determines in writing, based on current market research, that the Goods or Services are available from only one seller or source.

(e) Emergency Procurements: The Lottery may, in its discretion, enter into a Contract without a competitive Solicitation if an Emergency exists, subject to the following restrictions and qualifications:

(A) Emergency Contracts that are also Major Procurements: Except as otherwise set forth in this rule, the Director may make an Emergency procurement or enter into an Emergency Contract for a Major Procurement only with the approval of the Commission. If the Emergency procurement requires immediate approval of the Contract, the Commission may conduct its meeting as provided in ORS 192.670 and 192.640(3). By adopting these Division 38 rules, the Lottery Commission approves the award of a Major Procurement that is also an Emergency Contract if (i) an Emergency exists that can only be addressed by the execution of an Emergency Contract for a Major Procurement, and it is impractical to assemble a quorum of the Commission in time to address the Emergency.

(B) Extension of Emergency Contract: The Director may enter into an extension of an Emergency Contract, including an extension of an Emergency Contract for a Major Procurement, without the approval of the Commission, where the original Contract or the declaration of the Emergency specifically provides for the extension, and the extension does not result in any change in the terms and conditions of the Contract other than an extension to its term and dollar amounts associated with the extension. In addition, if the Emergency Contract is also a Major Procurement, the Lottery must also determine that the Contractor has maintained its status as an approved Major Procurement vendor pursuant to OAR 177-037-0030 and OAR 177-037-0060.

(C) Director's Report: The Director shall make reasonable efforts to report to the Commission in writing any Emergency Contract by the next scheduled Commission meeting following the Contract Award date. However, the Director's inability or failure to report to the Commission within this time shall not affect the validity of any Emergency Contract.

(f) Alternative Procurements: The Lottery may Award a Contract as an Alternative Procurement in accordance with OAR 177-038-0090.

Notes

Or. Admin. Code § 177-038-0070

LOTT 8-2018, adopt filed 09/28/2018, effective 10/1/2018

Statutory/Other Authority: ORS Chapter 461 & Oregon Constitution, Article XV, §4(4)

Statutes/Other Implemented: ORS 461.400, ORS 461.410, ORS 461.420, ORS 461.430 & ORS 461.440