Sole-source procurement refers to the acquisition of goods or services from a single supplier due to unique capabilities, intellectual property rights, or circumstances that preclude competition. This method bypasses the traditional competitive bidding process. Justification usually involves demonstrating the exclusivity of the product or service, significant switching costs, or the need for compatibility with existing systems. It's often scrutinized to prevent unfair practices and ensure value for money.
Sole-source meaning with examples
- The city chose a sole-source provider for the new water filtration system because the technology was patented and required specialized expertise unavailable elsewhere. Their current system uses a very unique filtering device.
- After a major earthquake, the government declared a state of emergency and awarded a sole-source contract to a construction company for immediate infrastructure repairs, considering the urgency and logistical constraints. A new road needed to be made.
- Due to existing proprietary software, the company was limited to a sole-source vendor for its critical cybersecurity updates, as alternative solutions were incompatible. There were no other comparable options available.
- The university opted for a sole-source agreement with a well-established publisher for its academic journals, ensuring continuity and access to their extensive research archives. Very little to no competition existed.
- The small business, lacking funds, used a sole-source approach and had to use its only vendor due to existing payment terms and established relationships for its office supplies to avoid any disruption.