Question Tag: Single source procurement

You are the Head of Accounts of a large public hospital. A major component of a critical X-Ray machine is damaged and requires immediate replacement. However, the Head of the Procurement Entity who doubles as the Director of the Hospital is insisting that the procurement should be carried through competitive tendering so as not to incur the wrath of the Auditor General. He lamented, “I hate single sourcing because it has too much issues, I don’t want any problem.” Nevertheless, you feel strongly that single sourcing is the most appropriate method of procurement given that the amount involved falls within the threshold authorized by the Public Procurement Act, 2003 (Act 663) as amended by the Public Procurement Amendment Act, 2016 (Act 914).
Required:
As the Chief Accountant, write a memo to the Head of the Entity, justifying the appropriateness of the use of single source method to procure the component of the X-Ray Machine based on the Public Procurement Act, 2003 (Act 663) as amended by the Public Procurement Amendment Act, 2016 (Act 914). 4 marks