What is a "Single Source Procurement"?

What is a "Single Source Procurement"?

• A. A method involving multiple vendors for competitive pricing.
• B. A procurement method using a single vendor for unique conditions.
• C. A standard process that always requires competitive bids.
• D. A procurement method that is illegal in New Jersey.

Answer: (B)

A "Single Source Procurement" refers to the procurement method where a government entity utilizes a single vendor to obtain goods or services, particularly when unique conditions exist that make the vendor the only viable option. This situation can arise due to the specific expertise, proprietary technology, or specialized service that only one vendor can provide. Using a single vendor can streamline the procurement process, especially in cases where time is of the essence or where the specific goods or services are not readily available from multiple suppliers. This approach is valid under certain circumstances and is governed by regulations that require justification for not seeking competitive bids when the unique attributes of the required goods or services are present. While some procurement methods necessitate involving multiple vendors to encourage competition and better pricing, single source procurement is justified when the unique situation warrants. The regulations explicitly allow for such practices under specific conditions, provided that there is adequate documentation justifying the decision.

A "Single Source Procurement" refers to the procurement method where a government entity utilizes a single vendor to obtain goods or services, particularly when unique conditions exist that make the vendor the only viable option. This situation can arise due to the specific expertise, proprietary technology, or specialized service that only one vendor can provide.

Using a single vendor can streamline the procurement process, especially in cases where time is of the essence or where the specific goods or services are not readily available from multiple suppliers. This approach is valid under certain circumstances and is governed by regulations that require justification for not seeking competitive bids when the unique attributes of the required goods or services are present.

While some procurement methods necessitate involving multiple vendors to encourage competition and better pricing, single source procurement is justified when the unique situation warrants. The regulations explicitly allow for such practices under specific conditions, provided that there is adequate documentation justifying the decision.