What distinguishes a 'sole source' procurement exception?

The distinction of a 'sole source' procurement exception lies in the situation where only one source is available to provide the required goods or services. This typically occurs when a specific vendor possesses unique capabilities, proprietary technology, or is the sole manufacturer of a particular product. As a result, there are no alternative suppliers that can meet the specific needs of the purchasing entity.

In contrast, having multiple bidders, which is what the first option implies, does not apply to sole source situations, as the essence of a sole source is the absence of competition. The notion of numerous competitive bids is directly opposite to the concept of sole sourcing; competitive bidding entails at least two or more suppliers vying for the contract, which is not the case here. Lastly, the assertion that it applies to all government contracts is inaccurate since sole source procurement exceptions are specific to situations where competition is not feasible due to the lack of alternative sources, not a blanket rule for all types of contracts.