OAR 177-038-0090
Alternative Procurements


(1) The Lottery may Award a Contract as an Alternative Procurement pursuant to the requirements of this section. Such procurements allow the Lottery to enter into a series of Contracts over time pursuant to the authorization provided in regard to the Alternative Procurement and without necessarily following the requirements of an Intermediate or Large Procurement. The Director must approve each use of an Alternative Procurement, and may approve or deny Alternative Procurement requests submitted in a written memorandum that includes the information specified in Subsection (2) below. The Alternative Procurement request shall identify whether it is for one or more particular Contracts or classes of Contracts.
(2) For purposes of OAR 177-038-0090 (Alternative Procurements) the following definitions are applicable:
(a) “Class Alternative Procurement” means a contracting procedure that differs from the procedures defined in OAR 177-038-0070 (Source Selection Methods)(3)(a) through (e) and is for the purpose of entering into a series of Contracts over time or for multiple projects.
(b) “Contract – Specific Alternative Procurement” means a contracting procedure that differs from the procedures defined in OAR 177-038-0070 (Source Selection Methods)(3)(a) through (e) and is for the purpose of entering into a single Contract or a number of related Contracts on a time basis or for a single project.
(c) “Alternative Procurement” means a Class Alternative Procurement, a Contract – Specific Alternative Procurement, or both.
(3) In a written memorandum, the Alternative Procurement requests shall contain the following:
(a) Reasons why the Lottery has elected to use an Alternative Procurement.
(b) A description of the alternative process designed by the Lottery, which shall include a description of the Goods and Services that are the subject of the Alternative Procurement and the procurement process that the Lottery intends to use to acquire those Goods or Services, including provisions for amendment to the resulting Contract, and criteria for selection.
(c) Any additional information the Director determines reasonably necessary to evaluate the Lottery’s request for approval of an Alternative Procurement.
(4) The Director may approve or deny the request for an Alternative Procurement in accordance with this rule. Following the Director’s approval the Lottery may conduct the Alternative Procurement.
(5) The Director declares the following as classes of Alternative Procurements:
(a) Books, Memberships, and Subscriptions: The Lottery may purchase copyrighted materials directly and without a competitive procurement where there is only one known supplier available for such goods. This includes but is not limited to dues and fees for books, memberships, or subscriptions.
(b) Sponsorships: The Lottery may direct Award sponsorship agreements directly and without competitive procurement to help entities carry out their projects or activities that align with the Lottery’s mission in exchange for advertising.
(c) Gaming Contracts: The Lottery may issue a direct Award for Contracts for (a) Video Lottery terminals and Video Lottery games (including the equipment and services necessary to operate and maintain the Video Lottery terminals and Video Lottery games);(b) Goods or Services involving the receiving or recording of number selection in any Lottery game, or any Goods or Services involving the determination of winners in any Lottery game; (c) gaming devices, which means any type of equipment or method, including any electronic or manual equipment or combination thereof, or video device, on which a game is authorized by the Oregon State Lottery Commission is played. The device must display the amount that may be won, the amount wagered and any play credits available to the player. A gaming device may include a device that is intended primarily for personal or business use; or (d) gaming device game, (including the equipment and services necessary to operate and maintain the gaming device games), which means any procedure authorized by the Oregon State Lottery Commission that is a game on a gaming device, whereby by the opportunity to win includes a wagering process using a methodology that is based predominantly on chance to determine the outcome of the wager. The outcome of the wager may involve skill as long as the element of chance plays a predominant role. The methodology used must be testable by an independent testing laboratory.
(d) Repair Contracts: The Lottery may direct Award equipment repair and overhaul Contracts subject to the following conditions:
(A) The service or parts required are unknown and the cost cannot be determined without extensive preliminary dismantling or testing; or
(B) The service or parts required are for sophisticated equipment for which specifically trained personnel are required and such personnel are available from only one source.
(e) Security Contracts: The Lottery may direct Award Contracts to security vendors for studies, assessments or other security services that review secure and sensitive Lottery information, including material or systems that affect the fairness, integrity, security or honesty of the Lottery or any Lottery games.
(f) Manufacturer Direct Supplies: The Lottery may purchase Goods directly from a manufacturer if the price from the manufacturer is the same or less than the cost the manufacturer charges to its distributor(s).
(g) Software and Hardware Maintenance, Licenses, Subscriptions, and Upgrades: The Lottery may directly enter into a Contract or renew existing Contracts for information technology hardware or software maintenance and support, licenses, subscriptions and upgrades without competitive Solicitation where the maintenance, upgrades, subscriptions, and licenses are either available from only one provider or, if available from more than one provider, are obtained from the Lottery’s current provider in order to utilize the pre-existing knowledge of the provider regarding the specifics of the Lottery’s hardware or software systems. The Lottery shall document in the procurement file the facts that justify that maintenance, license(s), subscriptions, and upgrades were available from only one provider or from the current vendor.

Source: Rule 177-038-0090 — Alternative Procurements, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=177-038-0090.

Last Updated

Jun. 8, 2021

Rule 177-038-0090’s source at or​.us