What are the differences between sole source and competitive bidding for government contracts?

Government contracts in Washington state can be awarded through either sole source or competitive bidding. Sole source means that a contract is assigned to one particular entity without requiring a bidding process. This may be done when a special type of product or service is needed that only a select provider can provide, or when the cost of a competitive bidding process is deemed too great. Competitive bidding, on the other hand, is when bids from multiple entities are sought and evaluated to determine who will receive the contract. This process is used in order to ensure that the best price, terms and conditions are achieved with any given contract. In many cases, an evaluation committee is established to review and compare the bids, and to decide whether or not to award the contract. The primary benefit of sole-source contracts is that they can be executed more quickly, as the process does not involve competing bids. On the other hand, competitive bidding ensures that the best price, terms and conditions are obtained for the contract, since multiple providers were able to bid on the contract. As a result, competitive bidding will often be the preferred method of awarding a contract.

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What are the differences between sole source and competitive bidding for government contracts?

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