Sole-Source Procurement Definition
A sole-source procurement is defined as a situation in which only one source exists for the provision of goods or services. This can occur when there is only one supplier for a particular good or service, or when the goods or services are unique and no other suppliers can provide them. In either case, the buyer has no choice but to purchase from the single available supplier.
There are several reasons why a sole-source procurement may be necessary. In some cases, the goods or services in question are so specialized that only one supplier is able to provide them. In other cases, there may be time constraints involved that make it necessary to purchase from a single source. And in still other cases, the purchasing organization may have a long-standing relationship with the sole supplier that makes it preferable to continue working with that supplier rather than seeking out new ones.
Whatever the reason for a sole-source procurement, it is important to remember that such procurements must be justified and approved in advance by the appropriate authorities. The justification must demonstrate that there is a legitimate need for the goods or services in question and that there are no other sources that can provide them. Once approval is obtained, the purchasing organization can proceed with contracting with the sole supplier.
