Single Sourcing in the Public Sector- an Argument for or Against

Exercise 1: Single Sourcing in the Public Sector- An Argument For or Against

Submitted By: Wadhwa, Sandeep

Single & Sole Source Procurement Definition

Before I proceed, I would like clarify difference between two types of procurement sources. Single source purchasing refers to buying from one selected supplier, even though there are multiple suppliers that provide similar products. If an company decides to buy only HP computers then that is single source purchasing. However unlike sole source purchasing you and your company has a choice to switch suppliers, but for strategic and possibly cost and ease of doing business could be a reason the company decides to use only a specific supplier. Whereas Sole sourcing is refer to only those kind of purchasing decisions, where only one supplier that provides unique service or product, and companies have to stick with the supplier weather it’s available domestic or internationally.

Public procurement is a traditionalist way of doing any business within Supply Chain- which means Supply Chain Management is sub section within purchasing, where as private sector has its way of running those two departments.

An Argument or Against for Single Sourcing within Procurement

Over the years it has been trend within public procurement, where we have seen single sourcing is not always favourable way of doing the business. It only changes if Public procurement is for Defence or where country is buying services or products towards scientific technology (such as Nuclear).

In my opinion and experience, I will be favoring the single sourcing of products and services in Public Procurement.

Single Sourcing Procurement should always be done in a competitive

Types of Competitive Procurement

- Invitation to Tender

In some jurisdictions, this is called Request for Quotation, or an invitation to bid. (Remember, that procurement terminology varies from one jurisdiction to another.) This is the preferred procurement method and is used when the requirements can be identified specifically and the contract awarded only on the basis of lowest cost. The tender document contains all of the specifications and terms and conditions.

- Request for Proposals or Request for Quotation

The supplier is invited to submit a solution to a problem, or requirement. The selection of a winning proposal is based on the factors identified in the Request for Proposals such as merits of the technical solution, and each vendor’s past performance.

Some of the situations where above methods cannot applied, an unforeseen situation or emergency. Cannot replace or reframe the previous supplier or price variance or only availability of one supplier for the