Sole-Source Justification
Definition
A documented explanation for awarding a contract without competitive bidding, typically claiming that only one supplier can meet a requirement. In bribery audits, unsupported or recurring sole-source awards, especially to the same vendor, are a primary red flag for procurement fraud.
- Definition
- Documented explanation for awarding a contract without competitive bidding
- Typical claim
- Only one supplier can meet the stated requirement
- Audit context
- Procurement fraud and bribery investigations
- Red flag
- Unsupported or recurring awards to the same vendor
Common questions
Why are sole-source justifications treated as a fraud indicator rather than a normal procurement tool?+
Sole-source awards are legitimate when a genuine unique-supplier situation exists, but auditors flag them because the justification is easy to fabricate to steer a contract to a favoured or bribing vendor, so the document itself needs independent verification against the actual market.
What does an auditor check to distinguish a genuine sole-source award from a fraudulent one?+
Auditors compare the justification against market research, check whether the same vendor recurs across multiple sole-source awards, look for artificially narrow specifications that only one supplier could meet, and trace any relationship between the awarding official and the vendor.
Related terms
- Conflict of Interest
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- FCPA (Foreign Corrupt Practices Act)
- A 1977 US federal statute with two pillars: anti-bribery provisions that prohibit payments to foreign government officials to obtain or retain business,...
- Politically Exposed Person (PEP)
- A person entrusted with a prominent public function, currently or previously, within the applicable definition. Additional measures can also concern family and...
- Third-Party Due Diligence
- The process of verifying the identity, ownership, reputation, and business legitimacy of agents, distributors, joint-venture partners, and other intermediaries. Required under the...
- UK Bribery Act 2010
- A UK statute creating four offences: paying a bribe, receiving a bribe, bribing a foreign public official, and the corporate offence of...