What is sole source procurement and when is it appropriate to use?

• A. Justified when only one supplier can meet requirements; used sparingly and with proper justification.
• B. Used whenever time is short and competition is not possible.
• C. Preferred for routine purchases under policy thresholds regardless of alternatives.
• D. Applied for all new contracts regardless of market conditions.

Answer: (A)

Sole source procurement means buying from a single supplier without competing bids because only that supplier can meet the requirements. It should be used sparingly and only with a solid justification. For example, if a product or service is unique, only one vendor has the necessary capabilities, or there are specific compatibility, security, or proprietary reasons that no other supplier can meet, then pursuing a sole source is appropriate. The process typically requires documenting why no alternatives are viable, conducting a limited market check, and obtaining the necessary approvals to show the choice is justified. Time pressures or routine purchases do not justify bypassing competition, since they would undermine fairness and value.