Why are sole source awards rare? Why does the government use more complicated and expensive sealed...
Why are sole source awards rare? Why does the government use more complicated and expensive sealed bidding? Please give examples.
Homework Answers
Sole source awards are rare because it is used in non-competitive bidding for example when some projects are of national importance like military and only 1 party has the capability of performing such contracts than the government may issue sole source awards here the price of the contract is of minimum importance.
Sealed bidding is used in competitive bidding, for example, the government wants to give the contract of building roads then they may invite a lot of parties to bid for the project in the sealed bidding and those who are technically capable and provides the minimum rate that party will get an award of contract. These projects are not of national importance and hence price plays a dominant role in awarding the same.
As the nature of projects of national importance are rare and due to various parties generating capacity of executing complex projects sole source awards are rare.
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