(1) Solicitation of bids may be dispensed with where the purchases are clearly and legitimately limited to a single source of supply or which involve special facilities or market conditions. Terms may be established by direct negotiation.

(2) Any contract let under the provisions of this chapter shall be supported by a report setting forth the factual basis for not soliciting bids which report shall be open to public inspection.

(3) Used goods, materials, supplies, or equipment may be purchased under this section due to the uniqueness of the condition, features, and wear and tear of the item.