When Can a Sole Source Provider Be Used in California?

Full question:

In the state of California, if an architect sole sourced a product in an effort to restrict competition would this be a violation of the Sherman act?

  • Category: Consumer
  • Subcategory: Unfair Practices or Competition
  • Date:
  • State: Georgia

Answer:

The answer will depend on all the facts and documents involved. A company that produces a unique product or offers a one-of-a-kind service that no other company affords can be used as a sole source provider for a government project if that item or service is needed. A company can become a sole source provider even if there are other companies that make the product. If those other companies cannot deliver acceptable items or services when needed, they are not eligible. All providers to government agencies must go through a justification process and be accepted in order to be declared a sole source provider.

For further information, please see:

http://www.csufresno.edu/purchasing/purchasing/ways/solesource.shtml
http://rfptemplates.technologyevaluation.com/rfp/for/Sole-Source-Contracting-in-California.html

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

The Sherman Act prohibits certain anti-competitive practices, including agreements that restrain trade and monopolistic behaviors. Specifically, any agreement between competitors to fix prices, limit production, or divide markets is illegal under Section 1 of the Act. Violations can lead to civil and criminal penalties.