Which procurement term refers to a noncompetitive process in which the procuring entity solicits only one prospective contractor?

Which procurement term refers to a noncompetitive process in which the procuring entity solicits only one prospective contractor?

• A. Open bidding
• B. Sole-source contracting
• C. Competitive bidding
• D. Reverse auction

Answer: (B)

The main concept being tested is procurement methods and how competition is used in awarding contracts. When a procuring entity asks only one prospective contractor to submit a bid and does not invite others, that is sole-source contracting. This approach bypasses competition because there is a single chosen supplier who is deemed capable of delivering the required goods or services, often justified by factors like a unique capability, lack of alternative qualified sources, or urgent need after careful market research. Open bidding and competitive bidding both involve inviting multiple bidders to foster competition and transparency, so they are not the noncompetitive approach. A reverse auction is a competitive process where suppliers bid against each other to lower prices, typically online, which also does not fit the idea of soliciting only one contractor.

The main concept being tested is procurement methods and how competition is used in awarding contracts. When a procuring entity asks only one prospective contractor to submit a bid and does not invite others, that is sole-source contracting. This approach bypasses competition because there is a single chosen supplier who is deemed capable of delivering the required goods or services, often justified by factors like a unique capability, lack of alternative qualified sources, or urgent need after careful market research.

Open bidding and competitive bidding both involve inviting multiple bidders to foster competition and transparency, so they are not the noncompetitive approach. A reverse auction is a competitive process where suppliers bid against each other to lower prices, typically online, which also does not fit the idea of soliciting only one contractor.