Sole Source Contract

Full Definition

A sole source contract is awarded to a single vendor without competitive bidding under specific statutory and regulatory authorities outlined in FAR Part 6 and FAR Part 19. For open-market procurements, sole source awards require a written Justification and Approval (J&A) document signed at an approval level corresponding to the dollar value, explaining why full and open competition is not feasible. However, small business socioeconomic programs provide streamlined sole-source authority: 8(a) firms can receive sole-source awards up to $4.5 million for services and $7 million for manufacturing, HUBZone and SDVOSB firms have the same thresholds, and WOSB sole-source authority allows awards up to $4.5 million for services and $7 million for manufacturing in eligible NAICS codes. The contracting officer must determine that the awardee is a responsible contractor capable of performing the work at a fair and reasonable price.

Why It Matters

Sole source awards through small business programs are among the most valuable benefits of SBA certifications because they bypass the competitive process entirely, giving certified firms a direct path to contract revenue. To position yourself for sole-source awards, build relationships with program managers and contracting officers at your target agencies by attending industry days, responding to RFIs, and scheduling capability briefings. Demonstrate unique qualifications that distinguish you from other certified firms in your category. Many sole-source contracts originate when a program office identifies a specific need and works with the small business office to find a qualified certified firm. Marketing your capabilities directly to end users who write requirements is often more effective than waiting for posted solicitations.

Example

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