Sole Source Procurement Policy Example – Procurement Policies

Sole Source Procurement Policy Sample

In this article, we’ll look at the key elements that make up an example Sole Source Procurement Policy. We’ve included some starter/boilerplate information to help you get started writing this policy for your company. If you’re looking for help in setting up your policies & procedures or employee manual/handbook, our team can assist.

Sole Source Procurement Policy Template

The following are the main elements that should be included in your Sole Source Procurement Policy:

1. Title Page

• Policy Title: Sole Source Procurement Policy
• Company Name: The name of the organization implementing the policy.
• Policy Number (if applicable): For easy reference within the company’s policy structure.
• Version Control: Date of creation, last review, and version number.
• Effective Date: The date the policy becomes operational.
• Approval Authority: Name and title of the individual who approved the policy.

2. Purpose/Objective

• A brief statement explaining why the Sole Source Procurement Policy exists. This section outlines the policy’s purpose in relation to the company’s goals, regulatory requirements, or ethical standards.
• Describe what problem or issue the policy addresses.
• Example Purpose/Objective:

The Sole Source Procurement Policy aims to streamline the procurement process by allowing purchases from a single supplier under specific conditions. It is applicable when only one supplier is capable of providing a particular product or service, ensuring that unique or specialized needs are met efficiently. This policy helps maintain operational continuity and supports strategic sourcing decisions by recognizing situations where competitive bidding is impractical or impossible. It ensures compliance with procurement standards while facilitating timely and effective acquisition of essential goods and services

3. Scope

• A description of who the Sole Source Procurement Policy applies to (e.g., employees, contractors, vendors).
• Specify any exceptions to the policy.
• Explain departments or roles affected, if necessary.
• Example Scope:

This policy outlines the conditions under which sole-source procurement is permissible, focusing on situations where only one supplier is capable of providing a specific product or service. It applies to procurement activities that require unique or proprietary solutions unavailable from multiple vendors. The policy ensures that such procurements are justified, documented, and compliant with relevant regulations. It is designed to maintain transparency and accountability while addressing the necessity for specialized goods or services that cannot be competitively sourced

4. Definitions

• Clarify any key terms or jargon used within the Sole Source Procurement Policy to ensure understanding.
• Avoid assumptions about familiarity with industry-specific terminology.
• Example Definitions:

The Sole Source Procurement Policy permits procurement from a single supplier under certain conditions. This occurs when only one supplier is capable of providing a specific product or service, making competitive bidding impractical or impossible. The policy falls under the broader category of Procurement Policies, which govern how goods and services are acquired. It ensures that sole-source procurement is justified and documented, maintaining transparency and accountability in the procurement process

5. Policy Statement

• A detailed outline of the Sole Source Procurement Policy itself, including all rules, expectations, and standards.
• It should be direct and clear so that it leaves no ambiguity about the company’s position or requirements.

6. Procedures

• Step-by-step instructions on how to implement or comply with the Sole Source Procurement Policy.
• Include any forms, tools, or systems that employees must use.
• Describe the responsibilities of different roles in ensuring adherence to the policy.
• Example Procedures:

The Sole Source Procurement Policy outlines procedures for acquiring goods or services from a single supplier under specific conditions. It applies when only one supplier is capable of providing the required product or service, ensuring that procurement is justified and necessary. The policy requires thorough documentation and approval to validate the sole-source decision. It mandates a detailed explanation of why no other suppliers are suitable and may involve a review process to confirm compliance with procurement standards. This ensures transparency and accountability in procurement activities

7. Roles and Responsibilities

• List the roles responsible for enforcing or overseeing the Sole Source Procurement Policy (e.g., managers, HR).
• Define who is accountable for reporting, monitoring, and updating the policy as needed.
• Example Roles and Responsibilities:

The Sole Source Procurement Policy assigns specific roles and responsibilities to ensure compliance and transparency. Procurement officers must verify and document the necessity for sole-source procurement, ensuring no alternatives exist. Department heads are responsible for approving requests and ensuring alignment with organizational needs. Legal and compliance teams review and validate the justification to prevent conflicts of interest. The finance department oversees budgetary considerations and ensures financial accountability. Regular audits are conducted to assess adherence to the policy, and any deviations must be reported and justified

8. Compliance and Disciplinary Measures

• Outline how compliance will be monitored or enforced.
• Describe any consequences or disciplinary actions for failing to follow the policy, including the escalation process.

9. References and Related Documents

• Include links or references to any laws, regulations, or company guidelines that support the Sole Source Procurement Policy.
• Reference related company policies that connect or overlap with the document.

10. Review and Revision History

• State the review cycle (e.g., annually, biannually) and who is responsible for reviewing the Sole Source Procurement Policy.
• A history section that lists all revisions made to the document, including dates and reasons for changes.

11. Approval Signatures

• Signature lines for key decision-makers who have authorized the policy (CEO, department head, HR manager).

12. Appendices or Attachments (if needed)

• Additional information, FAQs, or case examples to provide more context or clarify how the Sole Source Procurement Policy applies in specific situations.
• Any relevant forms or templates employees need to complete.