Sole-source procurement

Sole-sourcing awards a contract to one supplier without open competition. Public buyers may only do it under defined exceptions — and most must still publish an award notice saying why.

Why it exists

Competition has costs and lead times that sometimes make no sense: an emergency repair, a patented part only one vendor can supply, an extension of existing work where re-tendering would cost more than it saves, or genuinely low-value purchases. Trade agreements (CFTA and its provincial equivalents) list the exceptions exhaustively.

Common exceptions

Emergency (risk to health, safety or property); exclusivity (only one supplier can meet the requirement, e.g. intellectual property or compatibility); low-value thresholds below agreement coverage; extensions or amendments to an existing contract that exceed a set percentage of the original value; and national-security or confidentiality cases.

Transparency obligations

Because no competition advertises itself, most jurisdictions compensate by publishing the sole-source award — value, supplier and justification — on a public site (Canada's federal buyers use a dedicated advance-contract-award-notice channel). This is where journalists and competitors watch for misuse.

Common questions

Is sole-sourcing the same as single-sourcing?

Purists distinguish them: sole source = only one supplier exists; single source = the buyer chooses one supplier among several for stated reasons. In practice the terms are used interchangeably on award notices.

Can a sole-source decision be challenged?

Yes — suppliers who believe an exception was applied wrongly can complain to the buyer's procurement-review office or, for covered contracts, the Canadian International Trade Tribunal under CITT bid-challenge rules.

How do I see sole-source awards?

Award notices (including non-competitive ones) flow into tender databases. pubsec.pro tracks awards and opportunities across Canadian buyers.

Related definitions

Contract award notice · RFQ vs RFP · Standing offer