Sole sourcing occurs when only one supplier can practically meet the requirement, often because of intellectual property, certification, compatibility, location or an emergency.
How should a business apply Sole Sourcing?
The buyer should record the factual basis for the exception and test whether an alternative specification, repair, substitute or timetable would create competition.
What records support Sole Sourcing?
Keep the justification, approval, price analysis, conflict checks and evidence of the supplier’s exclusive capability.
Sole Sourcing: what the sourcing record should show
| Area | What to record |
|---|---|
| Decision | The buyer should record the factual basis for the exception and test whether an alternative specification, repair, substitute or timetable would create competition. |
| Evidence | Keep the justification, approval, price analysis, conflict checks and evidence of the supplier’s exclusive capability. |
| Watch point | A preference for an incumbent does not establish a sole source. The file should show why other suppliers cannot meet the requirement. |
What is a common Sole Sourcing mistake?
A preference for an incumbent does not establish a sole source. The file should show why other suppliers cannot meet the requirement.
