The University of Southern Mississippi

Notice of Proposed Sole Source Purchase

SSP 26_024

RFQI# 3140004553

The University of Southern Mississippi anticipates purchasing the item(s) listed below as a sole source purchase. Anyone objecting to this purchase shall follow the procedures outlined below.

1. Description of the commodity that USM is seeking to procure:

USM seeks to procure the Liqoflux LF2AL15, a pilot-to-small-scale automated ultrafiltration and algae dewatering system. The system concentrates microalgae cultures and recycles processed water using specialized ultrafiltration membrane technology. It is designed to support aquaculture hatchery operations by providing consistent, high-quality algal biomass and improving water-use efficiency.

2. What efforts were made by the Agency to determine that the proposed provider is the only entity that can provide the commodity needed?

USM conducted a review of available algae harvesting and dewatering technologies, including centrifugation, dissolved air flotation, and alternative membrane filtration systems. While other technologies exist, none were identified that provide a fully integrated, automated system combining ultrafiltration membrane technology specifically optimized for microalgae, water recycling capability, and suitability for pilot-to-small-scale hatchery operations. Vendor research, technical document review, and consultation with subject matter experts confirmed that Liqoflux is the only known supplier of this specific system configuration.

3. What efforts were made to ensure the best possible price for the commodity was obtained?

USM reviewed the detailed vendor quote and evaluated pricing against comparable components and systems in the broader algae processing and membrane filtration market.

Discussions with the vendor were conducted to confirm pricing structure, included components, and system capabilities. Given the specialized nature of the equipment and

SSP 26_024

lack of direct competition for equivalent systems, the pricing is considered fair and reasonable for the technology and performance provided.

4. Why is the commodity the only one that can meet the needs to the Agency?

The Liqoflux LF2AL15 uniquely meets USM’s needs due to its integrated design, combining automated control with ultrafiltration membrane technology specifically engineered for microalgae concentration and water recovery. Alternative technologies either lack the ability to efficiently recycle water, require significantly more manual operation, are not suitable for delicate algal cultures, or are not scalable to the hatchery’s operational requirements. The system’s compatibility with marine hatchery conditions and its ability to deliver consistent, high-quality algal biomass make it essential to achieving project objectives.

5. Why is the amount expended for the commodity reasonable?

The cost of the Liqoflux LF2AL15 reflects its specialized engineering, proprietary membrane technology, and integrated automation features. The system consolidates multiple process steps (harvesting, dewatering, and water recycling) into a single unit, reducing the need for additional equipment, labor, and operational costs over time.

Considering its performance capabilities, expected lifespan, and importance to hatchery operations, the total cost represents a reasonable and justified investment.

SSP 26_024

Advertisement Schedule Date

1st scheduled 04/26/2026

2nd scheduled 05/03/2026

Any person or entity that objects and proposes that the commodity listed is not sole source and can be provided by another person or entity shall submit a written notice by May 14th, 2026, 2:00 PM CST, to:

Millissa Weaver

103 McIlwain Dr. Ocean Springs, MS, 39564

Ph: 228-818-8001

Subject Line must read "Sole Source Objection 26_024"

The notice shall contain a detailed explanation of why the commodity is not a sole source procurement. Appropriate documentation shall also be submitted if applicable.

If after a review of the submitted notice and documents, USM determines that the commodity in the proposed sole source request can be provided by another person or entity, then USM will withdraw

SSP 26_024

the sole source request publication from the procurement portal website and submit the procurement of the commodity to an advertised competitive bid or selection process.

If USM determines after review that there is only one (1) source for the required commodity, then

USM will appeal to the Public Procurement Review Board. USM will have the burden of proving that the commodity is only provided by one (1) source.