Which of the following is a valid prerequisite for commencing negotiations on a sole-source basis?

• A. An unsolicited proposal has received a favorable comprehensive evaluation
• B. Justification and approval has been obtained
• C. The agency funds are available
• D. All of the above

Answer: (D)

The key idea is that starting negotiations on a sole-source basis must be justified and supported by a solid, defensible basis for not competing. A formal justification and approval is required to show why full and open competition isn’t practicable and why awarding to the chosen source is in the government’s best interest. You also must have funding available, so there’s no risk of entering into an obligation you can’t pay for. If the sole-source basis is tied to an unsolicited proposal, that proposal must have been evaluated and found to have merit; a favorable comprehensive evaluation demonstrates that the government’s needs can be met effectively by this proposer without competitive bidding. When all three conditions are present—the justified reason, available funds, and a favorable evaluation of an unsolicited proposal—the sole-source negotiations are properly supported. Hence, all of the above are prerequisites.