Sole-Source Contracts refer to a specific type of contract where the government agency awards a contract to a single source without performing the standard competitive bidding process. This type of contract is typically used when the agency believes that only one supplier is capable of fulfilling the contract requirements, providing a unique service, or in scenarios where it is deemed as a matter of public interest.
The basis of awarding Sole-Source Contracts can be various, such as urgency, exclusive rights, or in cases where a competitive process is impractical. While these contracts can streamline processes, they may also attract scrutiny due to the lack of competition, making transparency and documentation crucial aspects. It is pertinent to note that the use of Sole-Source Contracts is regulated and is subject to specific rules and guidelines.
