Procurement term
Sole Source
A US federal award made to a single source without full and open competition, justified under a defined exception in FAR Part 6.
What is Sole Source?
A sole-source acquisition is a contract awarded, or proposed to be awarded, without full and open competition. The default rule in federal contracting is full and open competition; sole-source awards are exceptions that must rest on one of the statutory authorities in FAR Part 6.302, such as only one responsible source being able to meet the requirement, unusual and compelling urgency, or awards authorized by statute (including certain small-business program authorities).
Most sole-source actions above a dollar threshold require a written justification and approval (a J&A — Justification and Approval) describing the authority relied on, the market research performed, and why competition is not feasible. Agencies are also generally required to publicize the intended sole-source action so the market has an opportunity to challenge the claim that only one source can perform. Certain small-business programs — for example, 8(a) and service-disabled veteran-owned set-asides — have their own sole-source authorities up to defined ceilings.
For vendors, a sole-source award is commercially attractive but heavily scrutinized. The most defensible basis is genuine exclusivity — patented technology, unique data, or a capability no other firm can provide. Vendors monitoring the market can also use published sole-source notices to challenge an agency's assumption that only the incumbent can perform.
Example
An agency posts a notice of intent to award sole source to the original equipment manufacturer for proprietary spare parts; no other vendor can supply the parts under the OEM's exclusive rights, so a J&A documents the FAR 6.302-1 authority.
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