Single-Source Justification Example
A practical worked example for procurement teams. Replace the sample numbers with your own project or supplier data before using the result in an approval file.
Visual example: file-note structure
Use the visual flow as a checklist before copying the wording into an approval note.
Situation
A maintenance team requests an urgent replacement part for installed production equipment. The existing supplier is not the only company in the market, but the part must be compatible with the installed unit, preserve warranty position, and arrive quickly enough to reduce downtime.
This is a single-source case, not a sole-source case. Other suppliers exist, but procurement is choosing one supplier for operational reasons. That means the approval file must explain why competition is not practical for this purchase.
Inputs
| Item | Example entry |
|---|---|
| Requirement | OEM-compatible replacement control module for installed equipment |
| Requested supplier | Existing equipment supplier |
| Reason for single source | Compatibility, warranty continuity, immediate availability |
| Alternatives checked | Two local suppliers contacted; neither confirmed compatibility within required time |
| Operational impact | Production downtime and maintenance standby cost continue until part is replaced |
| Approval control | Technical confirmation and management approval required |
Decision
Single-source award can be justified if the file shows that the supplier choice is driven by compatibility, time, warranty, or operational continuity rather than convenience. The buyer should avoid vague wording such as "preferred supplier" or "known supplier" unless there is a documented approved-vendor or standardization basis.
If the same urgent requirement happens repeatedly, procurement should not keep using emergency justification. It should create a planned control such as minimum stock, spare-parts agreement, framework pricing, or an approved equivalent list.
Approval note wording
Suggested wording: Single-source award is recommended for the OEM-compatible replacement part because the installed equipment requires confirmed compatibility and warranty continuity. Two alternative suppliers were contacted, but neither confirmed compatible stock within the required time. Delay will continue production downtime and maintenance standby cost. Award is subject to technical confirmation, supplier availability confirmation, and approval by the authorized manager.
Risks and controls
- Price risk: ask for discount, last purchase price, or market check where time allows.
- Compatibility risk: attach technical confirmation from maintenance or engineering.
- Audit risk: keep evidence of alternatives checked and approval authority.
- Repeat-buying risk: create a planned spare-parts or framework action if this is recurring.
- Delivery risk: confirm stock, dispatch date, and delivery mode before PO release.
How this would sit in an approval file
In a real single-source file, the buyer should attach the user request, technical reason, market check, supplier quote, price reasonableness check, risk note, and approval route. The justification should not read like a supplier preference. It should explain why competition is not practical, what risk would be created by switching supplier, and how procurement checked that the price is still reasonable.
If the reason is compatibility, attach technical confirmation. If the reason is urgency, attach the programme impact. If the reason is warranty continuity, attach the warranty condition. This gives approvers a factual basis for accepting the exception instead of relying on general wording.
Common mistakes in this situation
- Using single-source because it is faster, without proving why competition is not practical.
- Failing to check price reasonableness.
- Missing technical confirmation for compatibility or standardization claims.
- Writing the justification after the supplier has already been committed.
Manager review wording: Procurement can support this single-source route only if the technical reason, market check, price reasonableness, and approval authority are documented before commitment.
Evidence to attach
- Maintenance request or urgent operational note.
- Technical confirmation of compatibility or warranty requirement.
- Supplier stock and delivery confirmation.
- Alternative supplier emails or call notes.
- Completed justification note or printed tool output.
Open Procurement Justification Generator Download justification template