605—8.3 (29C,17A) Exceptions. The division considers funds subject to competition except in those cases where:
	  1. 	 State or federal law, rule or regulation prohibits such competition.
	  2. 	 The state, federal or private funding source specifies a sole source for the receipt of funds.
	  3. 	 There is mutual agreement among the division and contract organizations.
	  4. 	 The administrator designates such funds to be noncompetitive.