Single-Source Justification

What is Single-Source Justification?

A single-source justification (also called a sole-source justification or non-competitive procurement justification) is the formal written record an authority must prepare before awarding a contract without running a competitive process. It must demonstrate that one of the legally recognized exceptions applies — typically unique capability, intellectual property exclusivity, extreme urgency, or follow-on contract necessity — and that there is no alternative supplier capable of meeting the requirement.

The quality of a single-source justification is critical for audit resilience. It must be specific: generic statements that 'no other supplier' can deliver are insufficient if the authority has not undertaken reasonable market research to verify this. Development bank-financed projects typically require their donor's prior review and no-objection before a sole-source contract is executed above threshold values.

For vendors involved in sole-source procurement, the justification exercise creates obligations as well as opportunities. If you are providing technical input or a specification that will be used in your own procurement, this creates a conflict of interest that must be disclosed and managed. Additionally, if competitor suppliers have reason to believe they could have competed, they may challenge the justification through judicial review or complaint to the procurement oversight body. Keeping sole-source contracts within reasonable scope and duration limits the audit exposure.