Sole source procurement generally refers to a contract executed without a competitive bidding process. Most governments, including the U.S., use sole source procurement in connection with certain goods and services.
There is nothing inherently wrong with sole source procurement from a Foreign Corrupt Practices Act perspective. However, the bribery risk is that a government contracting official with discretion over the procurement process may request money or something of value to convert what would otherwise be a competitive bidding process into a sole source procurement. The end result may be that the company providing or offering money or something of value to the foreign official will get the contract – which is an FCPA issue.
As highlighted below certain FCPA enforcement actions have involved – in some way – sole source procurement.