Sole Source Agreement Template

When evaluating the benefits of a contract with a supplier, you usually have a choice of different companies that can provide you with the products you want. However, you can bypass the process of evaluating competing bids and choose a particular vendor. This process is called single source contracting and typically occurs after a thorough analysis of all possible suppliers. In many cases, you would choose a provider from a single source, largely based on the price of a particular provider. In this situation, you avoid competitive offers because you are sure that no other supplier can reach or beat the price of the supplier you have chosen. You can also choose a supplier from a single source, depending on the quality of the products offered, which you find are superior to all the others. The main advantage of a single-source contract is that you have the option to buy based on factors that affect your bottom line. It also allows you to negotiate more favorable terms and switch providers if one of them does not meet your expectations. The main advantage of an individual source contract is that it reduces the time you spend sorting through all the available options. It takes time and money to contact different suppliers to ask for prices and negotiate contracts.

If you only have one supplier, distributor or supplier, you reduce the time you have to spend researching products and negotiating prices with suppliers. You can also save management fees with a single source provider because you spend less time negotiating things like price and delivery plan. .