Definition of Single sourcing and Sole sourcing
An article written by the Board chairman of Public procurement Authority PPA Professor Douglas Boateng titled “To single source or sole source” defined single source as a method which occurs when an organisation consciously select a single supplier from multiple options to meet a need whiles sole sourcing is when there is only one known supplier that can satisfy their need.
Act 663 of 2003 and 914 of 2016
Single source procurement
Section 40(1) a procurement entity may engage in single source procurement under section 41 with approval of the Board in the following exceptional circumstances,
(a) Where goods, works or services are only available from a particular supplier or contractor, or if a particular supplier or contractor has exclusive rights in respect to the goods, works or services, and a reasonable alternative or substitute does not exist.
Procedure for single source procurement
Section 41. The procurement entity may procure the goods, works or technical services by inviting a proposal or price quotation from a single supplier or contractor under section 40.
United Nations Commission on International Trade Law (UNCITRAL) Model Law on Public Procurement
Article 52 of the UNCITRAL model law on public procurement under Article 30 paragraph 5 states that a procuring entity may engage in single source procurement in accordance with provisions of article 52 of this Law in the following exceptional circumstances
(a) The subject matter of the procurement is available only from a particular supplier or contractor, or a particular supplier or contractor has exclusive rights in respect of the subject matter of the procurement, such that no reasonable alternative or substitute exists, and the use of any other procurement methods would therefore not be possible.
The real difference between the two methods, Single sourcing and Sole sourcing
There is no real difference between the two methods by law. Act 663 and 914 Public Procurement laws of Ghana does not recognise sole sourcing but single sourcing which is clearly captured in Section 40(1) (a) and Section 41 of the Act. It’s rather unfortunate that the meaning and definition given to both methods are under Section 40(1) (a) which the Act classifies as Single Source procurement. This is what the law states in Section 40,
(a) Where goods, works or services are only available from a particular supplier or contractor, or if a particular supplier or contractor has exclusive rights in respect to the goods, works or services, and a reasonable alternative or substitute does not exist.
Whether there are many suppliers or contractors and the entity decides to deal with one due to specialty or there is only one supplier or contractor available in the market, it is still classified as single sourcing. A supplier or contractor alone in the market does not make the procurement process sole as we tend to use it. It is clear from our law, Act 663& 914 and the UNCITRAL Model law on Public Procurement where we adapted some parts of our law from and serves as an International Standard for use by countries in Public Procurement does not recognize sole sourcing as a procurement method.
Conclusion
Where from the term sole sourcing? Isn’t it just a term coined out to aid in public procurement corruption? Sole Sourcing is not legally recognized then why then do we keep using it. It is time stakeholders like Public Procurement Authority, Ministry of Procurement, Ministry of Finance and Economic Planning, Professional bodies; Civil society organizations take a look at this and come clear on it.
By: Ahsasu Isaac(AGIPS)
