Recently our law firm filed a request for investigation with the City and County of San Francisco concerning a competitor of one of our clients
that was receiving sole source contracts by simply stating that they were
a sole source.
This "sole source" process had been going on for many years without
our client's knowledge. We raised the issue of whether such
"sole source" allegations constitute "false claims" under state or
federal false claim act statutes. We believe they do.
We strongly recommend that if you have very few competitors and are
in the public sector you need to be monitoring the activities of your
competitor for such "sole source" contract awards.It is very easy to
file a public records request under the respective state or federal
Freedom of Information Act and obtain the contract documents. You
may find, as our client did, that you have lost business or a contract
award to a competitor unfairly.
Competition in the business world is generally a very good thing and
sole source contracts are frankly the antithesis of good business
practices. Sole source contracts should be the exception-not the rule.
Make sure you monitor your competitors to make sure they are not sole
sourcing contracts that could rightfully be yours!