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Single Sourcing in the Public Sector- an Argument for or Against

Autor:   •  October 9, 2018  •  781 Words (4 Pages)  •  310 Views

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product or commodity.

Other ways to end or have better flexibility when dealing within Single Sourcing- “Buying Out the Vendor”- It is not always a case but, yes it happens when Sky bought out Amstrad who were the suppliers of the set top boxes” (Bland, 2007).

Procurement Departments should always be ready with alternate ways or source, it is much easier in single source procurement (but not sole source), since other similar suppliers should be able to supply similar products with more or less that same quality as the previous suppliers.

The suppliers would know this as well, and they would be more flexible when negotiating and more accommodating to terms. In case of public procurement were contracts are tight and caution, and always favourable to public sector, where as in Sole sourcing – any organization or department always gets stuck with same supplier for years and years.

Public Procurement follows six core purchasing Strategies and characteristics to avoid opting for Sole Procurement process

STRATEGIES CHARACTERITICS

Supplier Optimization Value and Political

Total Quality Methods (TQM) Tendering

Risk Management Risk Adverse

Global Sourcing Tax Base

Vendor and Purchasing Team Development Citizens and Clients

Green Sourcing Narrow to Local sellers

INTERNATIONAL TRADE AGREEMENTS (ITA’S)

The regulation of sole-sourcing is more developed at the federal level than at provincial and municipal levels. This is because it is only at the federal level that the various international trade agreements entered into by Canada, which touch on procurement have effect. These agreements include:

- The North American Free Trade Agreement (“NAFTA”);

- The World Trade Agreement on Government Procurement (“WTO-AGP”);

- The Free Trade Agreement between Canada and the Republic of Peru (“FTACP”); and

- The Canada-Chile Free Trade Agreement (“CCFTA”).

To Conclude between Single Sourcing and Sole Sourcing

Sole sourcing is the awarding of a contract to a supplier without any form of competition. It has been the subject of newspaper articles, Auditor General Reports, and questions in many different legislatures and councils across Canada. Sole sourcing, by its very nature, offends the public policy of “fair and open competition”. When sole sourcing is used, the agency is stating that there is no competition available in the marketplace, and that only one supplier is capable of satisfying the requirements.

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