Sole Source Procurement
A contract awarded without competition because only one supplier can meet the requirement; requires specific justification under PCR / PA 2023.
Definition
Sole source procurement (also called single-source procurement) is a contract awarded without competition because only one supplier can meet the requirement. PCR 2015 and PA 2023 permit sole source only in specific circumstances: extreme urgency where competition is not practical, technical exclusivity where only one supplier can meet the requirement (intellectual property, specific equipment compatibility), prior procurement that produced no responsive bidder, or additional supplies from an existing supplier where switching would be disproportionate. The justification bar is high and decisions are visible through transparency notices.
How it works in practice
Authorities must document the rationale for sole source procurement carefully because the decision is reviewable. The decision must be against the specific permitted ground (urgency, exclusivity, no responsive bidder, additional supplies) and the documentation must evidence the test was met. For urgency the authority must show the urgency could not have been anticipated and was not caused by authority delay. For exclusivity the authority must show no other supplier could meet the requirement, often supported by detailed market analysis. For no responsive bidder the authority must show a prior competitive procurement actually ran and produced no compliant bid. For additional supplies the authority must show the original procurement contemplated extensions or that switching is disproportionate. Sole source contracts publish transparency notices under PA 2023 with the rationale visible. Suppliers benefiting from sole source awards should ensure the rationale is documented robustly because the award is exposed to challenge from competitors. Authorities increasingly subject sole source decisions to internal procurement gateway review before award; the political cost of an unjustified sole source has risen sharply in recent years.
Common questions
When is sole source procurement permitted?
Specific circumstances under PCR 2015 / PA 2023: extreme urgency that could not have been anticipated; technical exclusivity where only one supplier can meet the requirement; prior procurement that produced no responsive bidder; or additional supplies from an existing supplier where switching is disproportionate. The justification bar is high.
How is the urgency exception interpreted?
Strictly. The urgency must be genuine, must not have been caused by authority delay, and must not have been reasonably anticipatable. A buyer who left procurement too late cannot retrospectively rely on urgency. Genuine urgency cases (responding to a crisis, addressing safety risk, replacing failed supplier in short window) are accepted; manufactured urgency is not.
Can competitors challenge sole source awards?
Yes. Sole source awards above threshold publish transparency notices and trigger the standstill period; competitors can challenge in court if they believe the sole source ground was not met. Successful challenges void the award and require the authority to run a compliant procurement. The reputational cost of failed sole source defence is substantial.