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Procurement and Business Services

Sole Source Justification

Sole Source – as defined by South Carolina law, a Sole Source purchase is one where there is only one source (one supplier) that could possibly supply the required product or service. Examples of Sole Source transactions are:

  • There is only one supplier that can meet the required specifications.
  • The product that is required is under patent, copyright, or proprietary design.
  • The product is available only direct from the manufacturer.
  • The product is a replacement part or component for existing equipment and only available from one source.

What is not a sole source:

  • Something deemed to be the “best” fit for a specific purpose (by going through a process to determine what is “best” you are actually conducting a procurement process).
  • Something that is a “really good deal” – a vendor giving a great price for a short time, or only has one item available that we won’t get if we don’t place a PO now.
  • A good price, no time to do a bid, or stating it is the “best” anything are not reasons for sole source.
  • Something where there are multiple sources of supply but one supplier may be unique in how they do something, or we’ve used one in the past, or other institutions have used a supplier – these are examples of “single source” but not sole source. With Single Source suppliers, we have a preferred but under SC law, those are not “sole” or only possible supplier so we would still need to compete, most likely via a Request for Proposal.

Sole Source Justification based on Cost

  • Submitting Purchases greater than $10,000

    Sole Source Justifications are only required if purchase is greater than $10,000. If you are making a purchase that is >$10K, you must use the Sole Source form in buyWays and must provide very detailed and specific justification. The rest of this information on this page should be used as guidance for providing this justification.

  • Submitting Purchases greater than $50,000

    The law now requires that we issue an Intent to Sole Source for those sole sources that are greater than $50K. It must be advertised for 5 business days (or 10 business days if >$250K).  The purpose of this requirement is to transparently notify other suppliers of our intent so they can notify us if they believe they are also able to provide the same good or service.

    Because of this new requirement, it is very important for the end user to understand the potential implications. Submitted a sole source because they think it is the fastest/easiest option may backfire because the process could take MUCH longer if it is not a sole source and another supplier protests or questions the justification.  If we are not absolutely sure that something is a sole source it would make a lot more sense to do a bid/RFP as that may be a faster process with fewer issues. Your buyer can provide you advice on this, so please contact someone in Procurement if you have any questions or doubt as to a potential sole source.

    For something that is truly a sole source, nothing changes – you still need a solid justification that can stand on its own if another supplier asks why we are purchasing from a specific supplier. However, because it is out there publicly, it is just open to more scrutiny.

General Tips for a good sole source justification

A good sole source justification is a simple statement explaining:

  1. What requirement you have.
  2. Why the equipment or service must meet that requirement.
  3. Why a particular piece of equipment or service is the only one that can meet that requirement.
  4. How you know it is only available from the one specific vendor.
  • Do NOT say “see attached”; you must write the justification in the space provided in the form in buyWays. It is much preferred to simply write a short paragraph than to write a long, formal memo that needs to be deciphered.  When it comes to sole source, quality is WAY more important than quantity.  If multiple items are truly unique in your justification, pick just one to explain in detail and use as your justification. 
  • Do NOT provide more details than required above; why it is a rush, why it is a good deal, or outlining specifications that are not unique to this purchase are irrelevant and should not be included. A good justification based on a single, well justified requirement is much better than a long, drawn out, confusing justification.
  • Do NOT use word such as “we selected,” “a committee chose,” or “better than …;” these all suggest that an informal procurement process was used to select the product or service over another.
  • DO highlight any requirements for compatibility with existing equipment (explain what we have and why our need must be compatible with it – then explain why it is the only compatible item); mention any ongoing research requirements.
  • Note that under SC law and University policy, sole sources require a written determination and approval by the Procurement Director and Comptroller, plus any departmental or VP approvals as necessary, so allow time for processing.

Sole Source Justifications

  • Research Continuity

    Ensuring that the research being performed is not interrupted, affected or changed by the introduction of another good and/or service that will disrupt its continuity. Similar to Compatibility.

    Helpful Hint: Ask yourself why this good and/or service is essential to preserving or working with your current data and producing future data that is considered valid in your research. Answer that question with specific detail that someone not familiar with the research can understand.

  • Unique Design

    Looking at the form (the shape, size, dimensions and mass), fit (the physical interface or interconnect with another item or assembly), and the function (the action(s) that an item is designed to perform) of an item in comparison to other items.

    Helpful Hints: Be specific. Don’t assume someone is familiar with your needs or existing constraints. Use form and function as a guide. If another supplier provides something that could possibly work, even if it’s not the best option, then it may not be a sole source. Consider addressing the justification to provide to a supplier that will not be getting the order.

  • Compatibility

    The goods being purchased can perform with another good without issue; it is designed to work or operate with another good or system without modification.

    Helpful Hints: Explain any impact on current or ongoing research that would result by going with a different item or supplier. What specifically would happen? Why couldn’t another item or supplier work? Use fit as a guide — how well does the good interface or interconnect with other goods, as a system or assembly?

  • Individuals Unique Qualifications Required

    Occasionally contracting with an individual is required. Most of the time, this is not going to be a sole source because it is nearly impossible to justify that one person is the only person in the world that can do something.  Most of the time, the best that can be justified is that they are “best” qualified, which would not be a sole source.  However, if you feel an individual is required based on qualifications they have, a sole source may be appropriate.  The key to this justification is to explain in detail the required qualifications – why we need someone with that specific qualification and how we know this is the only supplier with this qualification. 

    Helpful Hints: An RFP to choose the “best” qualified individual or consultant is most times the better option. If using, be sure to focus on the unique qualifications — why do we need someone with that qualification, and why is this the only person that could possibly have that qualification?

  • Legal Requirement

    An urgent need for goods and/or services.

    Helpful Hints: Provide documentation that supports any legal requirement to use a specific supplier. If it is not in writing, it is not a legal/contractual requirement. Consider a Grant Specified Procurement if the purchase is related to a Grant requirement.

  • OEM Replacement Parts and/or Service

    An item that is part of an overall piece of equipment or system needs replacement and only the original equipment manufacturer makes and distributes the item.

    Helpful Hint: Provide documentation showing that the replacement part can only come from the original equipment manufacturer or from one source.