What is one of the reasons agencies may exclude a source from a contract action?

One of the key reasons agencies may choose to exclude a source from a contract action is to establish or maintain alternative sources. This approach is crucial for ensuring that there is a diverse supplier base, which can enhance competition and reduce reliance on a single supplier. By maintaining alternative sources, agencies can mitigate risks associated with supply chain disruptions, price fluctuations, and changes in supplier capabilities.

In a competitive procurement environment, fostering a variety of sources encourages innovation and helps ensure that agencies can meet their needs effectively and efficiently. It enhances bargaining power and can lead to better pricing and service terms. This strategy aligns with best practices in procurement, which emphasize the importance of having multiple options to sustain a robust market for goods and services.

While maintaining preferred relationships with suppliers, avoiding competition, or reducing costs can also be considerations in procurement decisions, the emphasis on establishing or maintaining alternative sources is fundamentally about ensuring resilience and flexibility in the supply chain. This focus helps agencies navigate potential challenges while optimizing their procurement efforts.