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A sole-source procurement activity is where a contract is offered to known vendor(s) instead of conducting open competition, and the resulting contract is known as a sole-source contract. FAR Part 6 specifically forbids sole-source contracting when it is due to a lack of advanced planning.
Use of "sole source" contracts without proper justification. Use of prequalification standards in specifications to unnecessarily exclude otherwise qualified contractors. Dividing requirements to qualify for small-purchase procedures to avoid scrutiny for contract review procedures of larger purchases.
Multisourcing is the concept of working with multiple suppliers who are also competitors. [1] Large-scale buyers, such as the U.S. federal government, may want to feel assured that there is more than one supplier for an item.
In economics, a government-granted monopoly (also called a "de jure monopoly" or "regulated monopoly") is a form of coercive monopoly by which a government grants exclusive privilege to a private individual or firm to be the sole provider of a good or service; potential competitors are excluded from the market by law, regulation, or other mechanisms of government enforcement.
The sole source option is the part of the selection of bidders that acknowledges there is sometimes only one reasonable supplier for some services or products. This can be because of the limited applications for the product cannot support more than one manufacturer, proximity of the service provided, or the products are newly designed or ...
Hence, some partnerships have led to complaints of favoritism, to avoiding competitive procurement practices, and to claims of the use of sole-source agreements where not actually needed. There is also the danger of pre-purchasing a multi-decade supply of replacement parts (and materials) which would become obsolete within 10 years.
In supply chain management, the Kraljic matrix (or Kraljic model) is a method used to segment the purchases or suppliers of a company by dividing them into four classes, based on the complexity (or risk) of the supply market (such as monopoly situations, barriers to entry, technological innovation) and the importance of the purchases or suppliers (determined by the impact that they have on the ...
In fact, NASA officials had even drafted a justification for selecting Boeing as the sole provider. [15] While William H. Gerstenmaier, NASA's human exploration lead, had considered the Starliner proposal as stronger, [16] he was hesitant to award a sole-source contract.