A procurement method where a contract is awarded to a single supplier without competitive bidding is predicated on specific conditions. These conditions often involve the unique expertise, patented technology, or exclusive control of a resource by that specific entity. An example might be acquiring a critical component for a complex piece of equipment where the original manufacturer is the only vendor capable of supplying the part to exact specifications.
This method offers the advantage of speed and efficiency in obtaining necessary goods or services when alternatives are limited or nonexistent. It can also ensure consistency and compatibility, especially when integrating with existing systems. Historically, reliance on this approach has stemmed from specialized needs or emergency situations, requiring expedited acquisition. However, the lack of competitive pressures necessitates rigorous justification and price negotiation to ensure fair value.