Single supplier markets are a practical reality for many local authorities. A council may conclude that only one supplier can provide what it needs because of technical constraints, exclusive rights, compatibility issues or the absence of a realistic alternative in the market.
However, under the Procurement Act 2023, the fact that the market appears to contain only one viable supplier does not remove the need for compliance. In practice, it increases the need for discipline. If a council cannot evidence why only one supplier can meet the requirement, it risks challenge, audit concern and internal governance difficulty.
Why this matters now
Single supplier situations often arise under pressure. A service may need continuity, an incumbent system may be hard to replace, or specialist delivery may appear to leave little room for competition. That is exactly why councils need to be careful.
Assumptions are not enough. The authority must be able to show why competition is not possible or why only a particular supplier is capable of meeting the requirement on lawful grounds.
Single supplier is not a route by itself
One of the most important points for councils is that “single supplier market” is not, by itself, a freestanding legal route.
If the authority is not running a competition, it still needs a lawful basis for a direct award. Under the Act, that means identifying a relevant justification, for example an absence of competition for technical reasons where there is no reasonable alternative, or a situation involving exclusive rights.
That legal basis must then be supported by evidence. In addition, where a direct award route is being used, the authority must publish a transparency notice before the contract is directly awarded.
What evidence councils should be capturing
A defensible single supplier position starts with market evidence.
Authorities should record what market testing has been undertaken, whether alternative suppliers were considered, what technical or operational factors were assessed and why those factors lead to the conclusion that only one supplier is viable.
That evidence may come from soft market engagement, supplier research, prior procurement experience, technical advice or a review of the relevant delivery environment. The key is that the authority must be able to demonstrate a reasoned conclusion rather than a preference.
Why the audit trail matters so much
Single supplier decisions are often challenged less on the headline conclusion and more on the quality of the record behind it.
The authority should document who considered the matter, what evidence was available, why alternatives were ruled out and how the legal route was identified. If those steps are poorly recorded, even a reasonable decision can become hard to defend.
This is particularly important where the requirement is high value, business-critical or politically sensitive. In those cases, the quality of the audit trail is just as important as the commercial rationale.
Governance and approval points councils should not miss
Single supplier decisions should not be treated as routine service-led choices. They need appropriate procurement and, where necessary, legal involvement.
Authorities should also distinguish clearly between internal governance tools such as waivers and external legal justification. A waiver under local rules does not create a lawful direct award route. Those are separate questions, and both need proper handling.
What councils should do now
Authorities should review recent and planned procurements where a single supplier position is being considered and test whether the evidence genuinely supports that conclusion.
They should ensure internal guidance distinguishes between market reality, legal route and governance approval.
They should also check that transparency notices, where required, are built into the process early rather than treated as an afterthought.
Councils wanting practical process support, governance tools and implementation guidance can use the Prestige Commercial Consulting support hub.
Support with complex route justification
Single supplier cases are often where procurement law, governance and service pressure collide. Where councils need help with route justification, documentation or audit readiness, broader support may be appropriate. Authorities can explore relevant services through the Prestige Commercial Consulting main website or speak directly to the team through the contact page.
The takeaway
Single supplier markets are not unusual, but they are high-risk if handled casually.
Councils need more than a belief that only one supplier can deliver. They need evidence, a lawful route and a record that shows their decision can withstand scrutiny.