Which procurement method is used to obtain a contract when formal competition is not required?

• A. Informal quotes
• B. Sole source
• C. Random drawing
• D. Full and open competition

Answer: (B)

Sole source procurement is used when formal competition is not required. This approach negotiates a contract with a single source because that source is determined to be the only supplier capable of meeting the agency’s needs or when timing, urgency, or unique capabilities make competing impractical. Even though only one vendor is selected, the action typically requires a written justification and approval (a justification for other than full and open competition) to document why competition isn’t feasible or appropriate.

Informal quotes involve competition and are typically used for smaller purchases under certain thresholds, so they’re not about bypassing competition. Random drawing isn’t a standard procurement method. Full and open competition would require multiple offers and is precisely what sole source actions avoid.