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Noncompetitive purchases greater than $10,000 are subject to the following procedures.
In some circumstances, Postal Service business and competitive objectives may be met most effectively through a noncompetitive purchase. The following four scenarios discuss the instances when it is appropriate to use the noncompetitive method:
- Sole Source — Only one supplier exists, capable of satisfying a requirement.
- Industry structure or practice — The industry producing or supplying the required goods or services is structured in a manner that renders competition ineffective (e.g., when purchasing goods or services that are regulated, such as utilities, or when purchasing from nonprofit or educational institutions that do not compete in the market place).
- Compelling business interests — There is a business interest that is so compelling that purchasing noncompetitively outweighs the benefits of competition. These situations can include, but are not limited to, the urgency of the requirement, a supplier innovation that furthers Postal Service business objectives, or undue cost or delay would result from a contract award to a new supplier.
- Superior Performance — A supplier’s superior performance and its contributions to the Postal Service’s business and competitive objectives merit award of a particular purchase. For example, extending the term or expanding the scope of a contract for substantially the same goods or services when a supplier has performed at such a high level that the extension or expansion is well deserved, or when a supplier’s superior performance has made such performance beneficial to Postal Service operations.
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