# Sole Source Justification Letter Template

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

## Short answer

A structured justification for buying from a single supplier without competition, with price reasonableness and approval lines.

## Category

compliance-legal

## Audience

- Buyer
- Contracts manager
- Procurement lead

## Tool

**Kind:** template

**Output:** document

**Fields:**

#### Company name

**Key:** company

**Type:** text

**Default:** Acme Precision Ltd

#### Reference number

**Key:** ref

**Type:** text

**Default:** SSJ-2026-017

#### Date

**Key:** date

**Type:** date

**Default:** 2026-10-20

#### Prepared by

**Key:** buyer

**Type:** text

**Default:** M. Okafor, Senior Buyer

#### Proposed sole source supplier

**Key:** supplier

**Type:** text

**Default:** Optica Instruments GmbH

#### Item or service

**Key:** item

**Type:** text

**Default:** Calibration standard artifact set, part CS-440

#### Estimated value

**Key:** value

**Type:** text

**Default:** EUR 28,500

#### Basis for sole source

**Key:** basis

**Type:** select

**Options:**

- Proprietary design or patent
- Only qualified source on customer drawing
- Compatibility with installed equipment
- OEM warranty or service requirement
- Urgent need, no time to compete
- Other

**Default:** Compatibility with installed equipment

#### Why competition is not possible

**Key:** explain

**Type:** textarea

**Default:** The artifact set is traceable to the supplier's accredited lab and matches the interface of our installed coordinate measuring machine. Three other calibration houses were contacted and none offers this artifact.

#### How price was judged reasonable

**Key:** price

**Type:** textarea

**Default:** Compared to the price paid in 2024 adjusted for the published steel index, and to the supplier's list price for two other customers shared in writing.

#### Plan to remove the dependency

**Key:** future

**Type:** textarea

**Default:** Qualify a second source at the next equipment refresh in 2028 and request the interface specification now.

**Blocks:**

#### Sole Source Justification

**Body:** Company: {{company}}
Reference: {{ref}}
Date: {{date}}
Prepared by: {{buyer}}

#### Purchase summary

**Body:** Supplier: {{supplier}}
Item or service: {{item}}
Estimated value: {{value}}
Basis for sole source: {{basis}}

#### Why competition is not possible

**Body:** {{explain}}

#### Market research performed

**Table:**

**Columns:**

- Source contacted
- Date
- Result

**Rows:**

#### Price reasonableness

**Body:** {{price}}

#### Plan to reduce dependency

**Body:** {{future}}

#### Approvals

**Signatures:**

- Buyer
- Engineering or quality (technical need)
- Purchasing manager
- Finance or executive

**Notes:** Starting point only, not legal advice. Government-funded purchases have formal rules for noncompetitive awards; follow the clause that applies to your contract.

## Content

**Intro:** Buying from one supplier is sometimes the only option, but it is also the purchase auditors question first. A written sole source justification shows that you looked for alternatives, judged the price and planned to reduce the dependency.

**Sections:**

#### How to complete it

**Body:** Pick the basis honestly. 'We always buy from them' is not a basis. Valid reasons include a proprietary design, a customer drawing that names one source, compatibility with installed equipment, or a genuine emergency. Record who you contacted in the market research table, with dates and results, because that table is the evidence.

**Bullets:**

- Name the specific technical constraint, not a preference.
- List at least three sources you contacted.
- Attach any customer or engineering document that names the source.

#### Showing price reasonableness

**Body:** Without competition you must find another way to show the price is fair. Common methods are comparison to previous purchases adjusted for an index, comparison to the supplier's published price list, a cost breakdown from the supplier, or prices the supplier charges other customers, shared in writing. For larger values ask for cost data and a should-cost view of the main elements.

#### Where it fits in your process

**Body:** Attach the signed letter to the requisition or contract record in your ERP, and flag the vendor-item record as single source so planners see the risk. In flowdown contracts, check whether the customer must approve a noncompetitive award. Review the justification when the contract renews, since the original basis may no longer hold.

#### Common mistakes

**Body:** Writing the justification after the order, copying one letter across many suppliers, leaving the price section empty and treating urgency created by late planning as an emergency. Another mistake is never revisiting it: sole sources become permanent unless someone owns the exit plan.

**Cta:** If you want single-source parts flagged automatically from your ERP item and vendor tables, Netray can build a read-only report or assistant for that.

**Faq:**

#### What is the difference between sole source and single source?

**Answer:** Sole source means only one supplier can provide the item. Single source means you chose one supplier although others exist. Both need justification, but sole source is the stronger claim and needs more evidence.

#### Does urgency justify a sole source?

**Answer:** Only if the urgency was not caused by your own late planning and the delay would cause real harm. Record the consequence of delay and the other sources you tried to reach within the time available.

#### Who approves a sole source justification?

**Answer:** Usually the buyer prepares it, a technical owner confirms the need, and a purchasing or finance leader approves based on value. Your policy sets the thresholds.

#### How long is the justification valid?

**Answer:** Treat it as valid for the contract or order it supports. Review at renewal, at any major price change and whenever a new source appears in the market.

## Search terms

sole source justification template, single source justification form, sole source letter, noncompetitive procurement justification, sole source purchase memo, single source approval form, justification for other than full and open competition

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