Posts Tagged ‘contract’

Sole Source

September 24, 2009 Leave a comment

When a customer awards a vendor a contract without considering bids from other competitors, it is deemed a sole source victory. There are two ways to look at “sole source” contracts:

  • The customer loves you
  • The customer hates you

If you’ve done a great job providing a product that unobtrusively solves a customer’s problem, then that customer will love your company. Hence, if  the “rules” allow it, that customer will shower you with follow on sole source contracts for more copies and variants of the product.

If your product sux but it is inextricably and pervasively intertwined within the customer’s day-to-day operations, then your customer may hate you. However, since it would cost a ton of money and time to rip out and replace your junk with someone else’s junk, the customer may still shower you with follow on sole source contracts.

Regardless of which reality is true, corpo hierarchs will always attribute sole source contract awards to love.

Sole Source

Categories: business Tags: , , ,
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