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Procurement basics

What justifies a sole-source purchase

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A sole-source purchase means buying from a single supplier without running a competitive process, which is usually only justified in narrow circumstances, such as genuine urgency, a proprietary product with no real alternative, or an existing contract that makes switching suppliers impractical for reasons unrelated to preference or convenience.

Because sole-source purchases skip the natural discipline competition provides, most procurement frameworks require the justification to be documented in writing and approved at a level above the person actually making the purchase. That extra layer of scrutiny exists precisely because the absence of competition removes one of the strongest natural safeguards against an inflated price.

A pattern of repeated sole-source purchases to the same supplier, especially where genuine alternatives clearly exist, is one of the more reliable warning signs procurement auditors look for. A single justified exception rarely raises concern, but a habit of avoiding competition altogether usually does, and it is exactly that habit auditors are trained to notice.

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