What constitutes sole-source procurement and when is it justified?

• A. Competitive bidding always required
• B. Noncompetitive (sole-source) procurement only when justified
• C. Micro-purchases only
• D. Subrecipient monitoring

Answer: (B)

Sole-source procurement means obtaining goods or services through a noncompetitive process from a single source. It is justified only when there is a valid reason that competition is not practicable or not required. This happens when only one supplier can meet the requirements (for example, a unique capability, a patent, or compatibility with existing systems) or when time constraints or an urgent need make a competitive process impractical. Even in these cases, the justification must be documented and approved, outlining why competition isn’t feasible and what alternatives were considered.