Utah Admin. Code R33-8-101b - Transitional Costs - Cost-Benefit Analysis
(1) For this section, the following
definitions shall apply:
(a) "Competing type
of procurement item" means a type of procurement item that is the same,
equivalent, or superior to the existing type of procurement item currently
under contract in all material aspects including:
(i) performance;
(ii) specifications;
(iii) scope of work; and
(iv) provider qualifications, certifications,
and licensing.
(b)
"Competing provider" means another provider other than the existing provider
under contract that provides a competing type of procurement item.
(c) "Significant," "unreasonable or
cost-prohibitive" transitional costs are defined as costs associated with
changing from an existing provider of a procurement item to another provider of
that procurement item or from an existing type of procurement item to another
type that:
(i) constitute a measurably large
amount that would likely have an influence or effect on the award of a contract
if a competitive procurement were to be conducted for the procurement item
being considered; and
(ii) provides
a compelling justification for not conducting a competitive standard
procurement process.
(2) Transitional costs that must be
considered in a cost-benefit analysis include:
(a) costs that are directly associated with
changing from an existing provider of a procurement item to a competing
provider of that procurement item or from an existing type of procurement item
to a competing type of procurement item; and
(b) a full lifecycle cost analysis of the
existing type of procurement item and competing type of procurement items to
determine which procurement item is more cost-effective.
(3) Transitional costs that may be considered
in a cost-benefit analysis include:
(a) costs
identified in Section
63G-6a-103;
(b) costs offered by a competing provider for
a competing type of procurement item in a competitive bid or request for
proposals process conducted within the last 12 months;
(c) costs offered by a competing provider for
a competing type of procurement item in a competitive bid or RFP process
conducted before the most recent 12 months, updated using an applicable price
index;
(d) written cost estimates
obtained by the procurement unit from a competing provider for a competing type
of procurement item; and
(e) other
transitional costs determined to be applicable by the procurement
official.
(4)
Transitional costs or other information that may not be considered in a
cost-benefit analysis include:
(a) costs
prohibited in Section 63G-6a-103;
(b) data provided by the existing provider
for establishing:
(i) the market value of the
existing type of procurement item; or
(ii) a competing provider's price for a
competing type of procurement item;
(c) costs associated with any other
procurement item other than the existing type of procurement item or a
competing type of procurement item;
(d) non-monetary factors, such as the
provider's performance, agency preference, and other data or information not
specific to the transitional costs associated with the existing type of
procurement item or a competing type of procurement item;
(e) factors other than the monetary
transitional costs directly associated with changing from an existing provider
of a procurement item to a competing provider of that procurement item or from
an existing type of procurement item to a competing type of procurement item;
and
(f) other transitional costs or
other information deemed inappropriate by the procurement official.
(5) The conducting procurement
unit shall complete a written cost-benefit analysis and submit it to the
issuing procurement unit for approval.
(6) The cost-benefit analysis should not be
overly time-consuming to complete or involve hiring costly consultants or
financial analysts.
Notes
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