Source & Authority Information
- •FAR Part 6 - Competition Requirements(accessed 2026-01-15)
- •SBA 8(a) Program(accessed 2026-01-15)
What Are Sole Source Contracts
Legal Authorities for Sole Source Awards
- Only One Responsible Source (FAR 6.302-1): When only one source can meet agency requirements due to unique capabilities, proprietary technology, or other factors that cannot be duplicated. The contracting officer must document why no other source can meet the need and why the requirement cannot be modified to permit competition.
- Unusual and Compelling Urgency (FAR 6.302-2): When urgent requirements do not permit the time needed for competitive procedures. Urgency must result from genuinely unforeseen circumstances rather than poor planning. This authority has time and amount limitations.
- Industrial Mobilization or Engineering Development (FAR 6.302-3): For maintaining critical industrial capabilities or advancing engineering development where competition would not serve agency interests.
- International Agreement (FAR 6.302-4): When international agreements or treaties require award to specific sources.
- Authorized or Required by Statute (FAR 6.302-5): When specific statutes authorize non-competitive award. This includes 8(a) sole source awards to SBA-approved 8(a) program participants within specified dollar thresholds.
- National Security (FAR 6.302-6): When disclosure of agency needs through competitive solicitation would compromise national security.
- Public Interest (FAR 6.302-7): A rarely used authority requiring agency head approval with congressional notification for situations not covered by other exceptions.
Justification and Approval Requirements
Positioning for Sole Source Consideration
- 1Develop unique or proprietary capabilities
Invest in capabilities that genuinely differentiate you from competitors. Proprietary technology, specialized expertise, unique facilities, or distinctive methodologies create factual bases for sole source justifications. Generic capabilities rarely support sole source determination regardless of relationship strength.
- 2Establish incumbent positions
Winning initial contracts through competition positions you for potential sole source follow-on work when transition risks, learning curve costs, or continuity needs make competition impractical. Excellent incumbent performance strengthens the case for continuing without competition.
- 3Build technical expertise relationships
Engage with technical program staff who understand requirements and capabilities. Technical advocates who recognize your unique value can initiate requests for sole source consideration through proper channels. Contracting officers alone rarely originate sole source requests.
- 4Participate in developmental programs
Research and development contracts, prototyping efforts, and pilot programs can create transition advantages for follow-on production or implementation work. Agencies often prefer contractors who developed solutions over new entrants who would need to learn systems.
- 5Monitor and respond to sole source notices
Agencies sometimes publish notices seeking public comment before proceeding with sole source awards. Responding appropriately when you have capabilities prevents sole source awards to competitors and may create competitive opportunities instead.
8(a) Sole Source Authority
Sole Source Pricing Considerations
Risks and Limitations of Sole Source Strategies
- Political and policy exposure: Non-competitive contracting periodically faces scrutiny and criticism. Policy changes can restrict sole source authorities or increase documentation requirements. Heavy sole source reliance creates vulnerability to such shifts.
- Customer concentration risk: Sole source relationships often concentrate with specific agencies or programs. Loss of key customers or program changes can dramatically affect revenue without competitive diversification.
- Capability stagnation: Absence of competitive pressure can reduce innovation incentives. Companies winning primarily through relationships rather than capabilities may fall behind more competitive rivals over time.
- Pricing scrutiny: Sole source pricing receives more audit attention than competitive pricing. Pricing practices that cannot withstand scrutiny create compliance risk and potential liability.
- Protest vulnerability: Competitors can protest sole source justifications they believe are inadequate. Successful protests create delays, damage relationships, and may force competition the agency tried to avoid.
