A single source is defined as the only supplier that can provide you with the goods or products you need. The only source has established a monopoly or is the only supplier in a geographic area that entrepreneurs can get what they need. In some cases, the only source is choice, because it is the only provider that is available at any given time and can process what a business owner needs, or it is the only credit holder that carries that product. For example, a supplier that has auto parts that are no longer manufactured is considered the only source, since any company that needs that part must sign a contract with that distributor. Suppliers would also know this and would be more flexible in negotiations and more favourable to the terms. A word of caution: make sure that your contracts are tightly crafted to avoid situations where you cannot switch suppliers with one hand. When you evaluate the benefits of a contract with a supplier, you usually have a choice between different companies that can provide you with the products you need. However, you can bypass the competitive bid evaluation process and choose a particular creditor. This process is called single source contracting and usually occurs after a thorough analysis of all potential suppliers. In many cases, you would choose a single source provider, which is largely based on the price offered by a particular supplier. In this case, you bypass the tenders, because you are certain that no other provider will be able to reach or exceed the owner`s price of the credit you have chosen. You can also choose a single supplier, depending on the quality of the goods it offers, which you determine is better than any other.
Below are examples of exceptions to the state`s unique rules. They are NOT exceptions to the UW`s exclusive source rules: a single source purchase means that a single supplier (source) is able to provide the required product or service, according to the applicant`s best conscience, on the basis of thorough research (i.e. conducting a market survey). Similar types of goods and services may exist, but only one provider is the only acceptable source to meet a specific need for reasons of know-how and/or standardization, quality, compatibility with existing devices, specifications or availability. No matter how you look at it, however, depends on a supplier for a central part of your business can never be a good idea. So work on the fact that you are not in such a position.