Single Sourcing In The Public Sector
Develop an argument for or against single sourcing and close supplier relationships in public sector procurement. Argue for single sourcing, or argue against single sourcing. State your claim, your reasoning, your evidence and any anticipated objections or rebuttals, and draw a conclusion.
Definition
Before anything else, I would like to clarify the difference between the single sourcing and sole sourcing. Single sourcing is refer to purchase from one selected supplier, though there may have other suppliers provide the similar products or service, which is mean the purchaser has a choice to switch suppliers, but for the strategic and some reasons like cost , purchaser decides to use only a specific supplier. Sole sourcing is refers to those purchases where there's only one supplier that provides the unique product/service, which mean you cannot find anywhere but only stick on this supplier.
Problems
Dealing with a sole source options are much more limited since it is very difficult to change suppliers unless you are willing to change your requirements. But single source procurement, the options are much less restricted, since it is less difficult to change supplier.
Anyway both of single sourcing and sole sourcing are all purchase from only one supplier. Though use one supplier may has some advantages, for example, single sourcing normally takes less time than does administering a competitive call for tenders, but this slight benefit is not enough to outweigh the disadvantages including the need for the optimal use of the public purse.
When a company makes a contract with a government for supplying goods or services without competing against bidders, there is a real risk of corruption and overpricing. The company may feel that it can charge what it wants without worrying about the competition, weakening the incentive to be efficient and provide a good deal.
According report from Balkan Investigative Reporting Network at 2014, during the reporting period of
Definition
Before anything else, I would like to clarify the difference between the single sourcing and sole sourcing. Single sourcing is refer to purchase from one selected supplier, though there may have other suppliers provide the similar products or service, which is mean the purchaser has a choice to switch suppliers, but for the strategic and some reasons like cost , purchaser decides to use only a specific supplier. Sole sourcing is refers to those purchases where there's only one supplier that provides the unique product/service, which mean you cannot find anywhere but only stick on this supplier.
Problems
Dealing with a sole source options are much more limited since it is very difficult to change suppliers unless you are willing to change your requirements. But single source procurement, the options are much less restricted, since it is less difficult to change supplier.
Anyway both of single sourcing and sole sourcing are all purchase from only one supplier. Though use one supplier may has some advantages, for example, single sourcing normally takes less time than does administering a competitive call for tenders, but this slight benefit is not enough to outweigh the disadvantages including the need for the optimal use of the public purse.
When a company makes a contract with a government for supplying goods or services without competing against bidders, there is a real risk of corruption and overpricing. The company may feel that it can charge what it wants without worrying about the competition, weakening the incentive to be efficient and provide a good deal.
According report from Balkan Investigative Reporting Network at 2014, during the reporting period of