# Sole Source Justification Form Template

> Source: https://netray.co/tools/sole-source-justification-form-template
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Free Tools

## Short answer

A purchasing form that records why a single supplier is the only reasonable source, what alternatives were checked, and who approved the exception.

## Category

supply-chain

## Audience

- Buyer
- Purchasing manager
- Procurement

## Tool

**Kind:** template

**Output:** document

**Fields:**

#### Company

**Key:** company

**Type:** text

**Default:** Acme Precision Ltd

#### Justification number

**Key:** form_no

**Type:** text

**Default:** SSJ-2026-006

#### Date

**Key:** date

**Type:** date

**Default:** 2026-10-20

#### Requester

**Key:** requester

**Type:** text

**Default:** R. Singh, Buyer

#### Proposed sole source supplier

**Key:** supplier

**Type:** text

**Default:** Hartwell Heat Treat Co.

#### Item or service

**Key:** item

**Type:** text

**Default:** Vacuum heat treat of 17-4 PH housings per customer specification

#### Estimated annual value

**Key:** value

**Type:** text

**Default:** $85,000

#### Primary reason

**Key:** reason

**Type:** select

**Options:**

- Customer-directed source
- Only qualified or approved source
- Proprietary or patented item
- OEM-only part or service
- Urgency, no time to compete
- Compatibility with existing equipment
- Other

**Default:** Only qualified or approved source

#### Detailed justification

**Key:** details

**Type:** textarea

**Default:** The customer specification names Hartwell as one of two approved heat treat sources. The other approved source is at capacity. Qualifying a new source requires a customer audit and about six months.

#### Alternatives considered

**Key:** alternatives

**Type:** textarea

**Default:** Contacted the other approved source, which quoted a 12 week lead time. Considered in-house heat treat but no vacuum furnace capability.

#### Basis for price reasonableness

**Key:** price_basis

**Type:** textarea

**Default:** Compared to prior year price, with an increase of 3 percent in line with material cost indices. Benchmarked against the other approved source's quote.

**Blocks:**

#### Sole Source Justification

**Body:** Company: {{company}}
Reference: {{form_no}}
Date: {{date}}
Requester: {{requester}}

#### Item and Supplier

**Body:** Supplier: {{supplier}}
Item or service: {{item}}
Estimated annual value: {{value}}
Primary reason: {{reason}}

#### Justification

**Body:** {{details}}

#### Alternatives Considered

**Body:** {{alternatives}}

#### Price Reasonableness

**Body:** {{price_basis}}

#### Risk and Mitigation

**Table:**

**Columns:**

- Risk
- Mitigation
- Owner

**Rows:**

**0:** Supply interruption

**0:** Price increase without competition

**0:** Quality escape with no alternate

**0:** Plan to qualify a second source

#### Approvals

**Signatures:**

- Requester
- Purchasing manager
- Quality / engineering
- Finance or executive approver

**Notes:** Public sector or contract-funded purchases may have mandatory sole source rules and formats that override this template. Check your policy and contract clauses. This is a starting point, not legal advice.

## Content

**Intro:** A sole source justification form records why a purchase goes to one supplier without competition. It protects the buyer, satisfies auditors and forces the question: is there really no alternative?

**Sections:**

#### How to use this form

**Body:** Complete the supplier, item, value and reason, then write the justification in plain terms. Say what makes the supplier unique, what you checked, and why price is fair without competition. Complete the risk table and name an owner for any plan to qualify a second source. Export to PDF or Word and route for approval. File the approved form with the purchase order or supplier record so it is found during audits.

#### Sole source versus single source

**Body:** The two terms are often confused. A sole source means only one supplier can provide the item, for instance because of a patent, an OEM restriction or a customer mandate. A single source means several suppliers could provide it, but you have chosen to use one. Single source is a business decision and carries more risk questions. The form works for both, but state which one applies, since approvers judge them differently.

**Bullets:**

- Sole source: truly one capable supplier
- Single source: one chosen from several capable ones
- Customer-directed source: the customer named the supplier
- Emergency or urgency: weakest reason, so document carefully

#### Proving price reasonableness

**Body:** Without competitive quotes, you still need evidence that price is fair. Useful methods include comparison to prior prices adjusted for material indices, a should-cost estimate, price lists for catalog items, a cost breakdown from the supplier, or a quote for a similar item from another supplier. Record the method and the result. A blank price section is the most common reason approvers send the form back.

#### Common mistakes

**Body:** Using urgency as the reason for repeat buys, writing reasons that are preferences rather than constraints, failing to review annually, and not planning a second source where one is feasible. Set a review date. A justification that was true three years ago may no longer be.

**Cta:** Netray can flag single-source parts and concentration risk across your bill of materials and approved vendor data in your ERP, privately and read-only.

**Faq:**

#### When is a sole source justification required?

**Answer:** Your procurement policy sets the thresholds, often by value or for any non-competitive purchase. Public sector and contract-funded work usually has stricter rules.

#### Does a customer-directed source need a form?

**Answer:** It usually still helps. Record the customer document that names the source, so the buy is explained and not seen as a failure to compete.

#### How often should justifications be reviewed?

**Answer:** At least annually, and when value or risk changes. Markets and qualified suppliers change over time.

#### What if the supplier raises prices?

**Answer:** Without competition you rely on cost evidence. Ask for a cost breakdown, compare to indices and keep working on a qualified alternative.

## Search terms

sole source justification form, single source justification template, sole source memo example, sole source procurement form, single source purchase justification, non competitive procurement justification, sole source vendor approval form

---
Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json