Ace the CPCM Challenge 2025 – Unlock Your Contract Management Superpowers!

Question: 1 / 515

In the context of negotiations, what is 'sole source negotiation'?

Negotiating with multiple suppliers for the best price

The process of obtaining bids from various sellers

Negotiating with a single provider due to unique offerings

Sole source negotiation refers to the process of negotiating with a single provider due to their unique offerings that are not available from other suppliers. This situation typically arises when there is a specific product or service that only one vendor can provide, often due to proprietary technology, specialized expertise, or a patented process.

In such cases, the negotiations focus on terms, pricing, and conditions with that one supplier, as they hold the exclusive capability to fulfill the requirement. This kind of negotiation is distinct from pursuing multiple suppliers, which is characteristic of competitive bidding processes where various offers are evaluated to secure the best deal. Hence, the emphasis here is on leveraging the unique position of the single provider to achieve favorable terms, rather than comparing options among several vendors.

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A practice where no sellers are available for bidding

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