Single Source Justification

A Single Source Justification is a formal written approval that authorises a government procuring entity to procure from a single identified supplier without open tendering, permitted under GFR 2017 and CVC guidelines only when specific exceptional circumstances apply.

What is a Single Source Justification?

GFR 2017 Rule 166 lists the circumstances under which single source procurement is permitted without open competition. A Single Source Justification (SSJ) documents which specific circumstance applies and provides the technical or administrative basis for bypassing open tendering. Permitted circumstances include:

1. Proprietary items: Only one source exists (Proprietary Article Certificate (PAC) required).
2. Emergency: Urgency does not permit competitive tendering (Emergency Procurement procedures apply).
3. Standardisation: Procurement is required to match existing equipment or systems and substitution would be impractical (SSJ required with technical justification).
4. Government-to-government (G2G) agreement: A bilateral agreement at government level specifies the source.
5. Natural monopoly: The item is available from only one government undertaking or regulated entity.
6. Strategic/security considerations: Procurement involves classified requirements where open tendering would compromise security.

The SSJ document must include:

• Clear identification of the requirement
• Name of the proposed supplier and why only this supplier can meet the need
• Applicable GFR 2017 exception clause number
• Confirmation of the price being reasonable (by price comparison or published rates)
• Approval authority at the appropriate level (typically higher than standard delegation for open tenders)
• Concurrence of the CVO or internal finance for higher-value purchases

Why Single Source Justification matters for Indian government suppliers

For suppliers providing specialised services, proprietary technology, or government-partnered products, SSJ is the mechanism by which they can secure repeat contracts without re-competing each time. Understanding when SSJ is valid, and the documentation required, helps suppliers assist their government clients in correctly preparing the justification, reducing the risk of audit findings or CVC challenges. For competitors, knowing SSJ criteria helps identify where a procurement that should have been open was improperly restricted, enabling a legitimate challenge.

Example

A state IT department has deployed a specific GIS platform across 30 districts. The vendor is the only source for platform upgrades and annual licence renewal. The department prepares a Single Source Justification citing: (a) the platform is proprietary, no migration to equivalent product is feasible within budget, (b) standardisation with existing 30 district deployments is essential, (c) the price is verified against the vendor's published price list and previous year's purchase order. The SSJ is approved by the State IT Secretary, and the renewal contract is awarded directly.

Frequently Asked Questions

How is SSJ different from a PAC?

A PAC is specifically for goods that are patented or proprietary to one manufacturer. SSJ is the broader category of single source justification, of which PAC is one type. SSJ also covers emergency, standardisation, G2G agreements, and strategic reasons.

Can a contractor request that the government issue an SSJ in their favour?

A contractor can bring to the government's attention that its product is proprietary or that their service is uniquely positioned for a standardisation requirement. The SSJ decision, however, rests entirely with the procuring entity and is subject to independent technical verification. A contractor cannot "arrange" an SSJ, it must be based on genuine circumstances.

What is the risk to the procuring officer who signs an SSJ?

If the SSJ is found to be unjustified, for example, equivalent products existed that were not explored, the procuring officer faces CVC scrutiny, adverse audit findings, and potentially disciplinary proceedings for violation of GFR 2017. The bar for signing an SSJ is therefore high, and officers approach this with caution.

Does GeM have an equivalent to SSJ for direct purchase?

On GeM, Direct Purchase (up to INR 25,000) and Direct Purchase with 3 quotes (up to INR 1 lakh) do not require formal SSJ. For higher-value direct purchases on GeM (where the buyer specifies only one seller), a technical justification equivalent to SSJ is required and is part of the custom bid process.