Common use of Sole Source Procurements Clause in Contracts

Sole Source Procurements. In selected cases, it may be in the Project’s best interest to obtain materials, equipment, supplies, spare parts, field service representatives or services from a sole source in lieu of soliciting competitive bids. Determinations with respect to the need, justification, and acceptability of such a purchase shall be based on the special facts of each case. Noncompetitive bidding must be qualified as an allowable sole source procurement with appropriate justification based on the following: (a) recent project experience where equipment was competitively bid, (b) sole supplier of proprietary product or services, (c) technical factors required the specific design or performance to accomplish the desirable results, (d) must meet superior standards as to proven grade and reliability, (e) Client preferred or recommended supplier, (f) for use in combination with existing equipment and substitutes are unacceptable for technical or physical reasons. Must supply replacement parts or services to maintain the original design and performance, (g) SS&W Subsidiary or Alliance, (h) other project specific reasons, which will be outlined in detail. CONTRACTOR INITIALS & DATE: /s/ SNR 8/7/07 OWNER INITIALS & DATE: /s/ DS 8/7/07 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. Procurement Plan Hoku Materials Polysilicon Plant Pocatello, Idaho Should the responsible engineer or Hoku determine that the purchase shall be noncompetitive, the responsible engineer, as part of the Purchase Requisition shall initiate a Sole Source Justification Form. It is the PPM’s responsibility to ensure that the Sole Source Justification Form includes all required signatures prior to releasing the purchase commitment. The original Sole Source Justification Form will be filed along with the Inquiry / Purchase Requisition in the Procurement Files.

Sole Source Procurements. In selected cases, it may be in the Project’s best interest to obtain materials, equipment, supplies, spare parts, field service representatives or services from a sole source in lieu of soliciting competitive bids. Determinations with respect to the need, justification, and acceptability of such a purchase shall be based on the special facts of each case. Noncompetitive bidding must be qualified as an allowable sole source procurement with appropriate justification based on the following: (a) recent project experience where equipment was competitively bid, (b) sole supplier of proprietary product or services, (c) technical factors required the specific design or performance to accomplish the desirable results, (d) must meet superior standards as to proven grade and reliability, (e) Client preferred or recommended supplier, (f) for use in combination with existing equipment and substitutes are unacceptable for technical or physical reasons. Must supply replacement parts or services to maintain the original design and performance, (g) SS&W Subsidiary or Alliance, (h) other project specific reasons, which will be outlined in detail. CONTRACTOR INITIALS & DATE: /s/ SNR 8/7/07 OWNER INITIALS & DATE: /s/ DS 8/7/07 Exhibit A to Engineering, Procurement & Construction Management Agreement (Page 61 of 90) Execution Copy [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. Procurement Plan Hoku Materials Polysilicon Plant Pocatello, Idaho Should the responsible engineer or Hoku determine that the purchase shall be noncompetitive, the responsible engineer, as part of the Purchase Requisition shall initiate a Sole Source Justification Form. It is the PPM’s responsibility to ensure that the Sole Source Justification Form includes all required signatures prior to releasing the purchase commitment. The original Sole Source Justification Form will be filed along with the Inquiry / Purchase Requisition in the Procurement Files.