Material & Disbursement Services (MSD)
APPENDIX 2
Effective Date: 07/01/1996
Last Modified Date: 02/12/2004
Document Description
Rather than being a form, a justification memorandum is a memo or letter that must be prepared by a requesting department to justify the purchase of certain items or the use of a specific purchasing method. The specific instances requiring the use of a justification memorandum are described throughout this Business Manual.
A justification memorandum may be in any format and of any length. It should be addressed to Purchasing Services, contain a thorough explanation for the request, and refer to the accompanying Purchase Requisition by number.
Guidelines
State law requires the University to obtain competition for purchases whenever possible. When our requirements can be met only by a specific product or vendor, therefore, Purchasing must have documentation in its files to show a rationale for not obtaining competitive quotes/bids from multiple vendors. This "brand-specific" and/or "vendor-specific" (single-source) justification must accompany the requisition when it is sent to Purchasing.
Each justification memorandum is prepared for a unique situation; therefore, the information necessary in each is different. The following are general guidelines for writing a justification memorandum.
Brand-Specific Justifications
A brand-specific rationale cannot be used unless the requirement can be met only by the exact specifications offered by a particular piece of equipment made by a particular manufacturer. Generic, performance-based specifications encourage competition and should be used wherever possible. A brand-specific justification must explain why the product is singularly able to meet the requirements of the user and must conclusively support the determination that no other product can fulfill the user's needs. Brand-specific rationales include the following:
- Compatibility or Standardization: When justifying the use of a specific brand on the basis of compatibility, you must conclusively explain that the requested brand is the only one that is compatible with the existing equipment or the only one that will support planned expansions or additions to the equipment. In the case of networks, standardization may be the basis for compatibility, as different hardware and software configurations can make learning and actual use much more difficult.
- Desired Product or Service for Educational, Training, Experimental, Development, or Research Work: This rationale may be used when the products/services or the requisite training or educational products or services are key to the desired outcome intended or are critical to maintaining a stabilizing factor in ongoing research or operational efforts. Any determination written to support this rationale must document the inadequacy of an alternative or the likelihood of another brand introducing an unsuitable or new variable into the operating environment or the research protocol.
- Repair/Warranty/Technical Support Available on Campus: This can be used for equipment that needs to be repaired quickly or for equipment for which the user needs accessible technical support from on-campus organizations such as ITS. When using this rationale, you must state that this same support is not available for other suitable brands or models.
Vendor-Specific (Single-Source) Justifications
Because there are so many vendors who are capable of supplying the same goods and services, unless the manufacturer is the only authorized supplier of the product, it is very difficult to conclusively document the need for a specific vendor. Sometimes you can limit vendors to the local area by providing specifications that include quick service response times. However, it is much more difficult to conclude that a particular vendor offers a "unique service" not offered by any other vendor; such a claim must be documented fully.
Additional Information
See also: MSD Policy 7, Single-Source or Brand-Specific Purchases
Return to Material & Disbursement Services Section Contents
Return to Business Manual Table of Contents