What is a sole-source contract?
A sole-source contract is awarded to a single vendor without competition, based on a written agency determination that only one source can perform the work. Federal sole-source awards require a Justification and Approval document (J&A) and are subject to bid-protest review.
Federal procurement law strongly prefers competition. Sole-source awards are the exception — the agency must justify in writing why competition is not feasible.
Statutory exceptions allowing sole-source under FAR 6.302: - Only one responsible source can perform (unique capability, patent, proprietary data) - Unusual and compelling urgency (emergency situations) - Industrial mobilization, engineering, developmental, or research capability - International agreement requirements - Statute or executive order authorization - National security - Public interest determination by agency head
For each sole-source award, the agency prepares a Justification and Approval (J&A) document explaining which exception applies. The J&A is reviewed within the agency, posted on SAM.gov for transparency, and subject to bid-protest by other vendors.
Sole-source set-aside thresholds within small-business programs are different and easier — the agency does not need to prove "only one source," only that a single qualifying small business has been identified. Thresholds: - 8(a): up to $4.5M ($7M manufacturing) - HUBZone: up to $4M ($7M manufacturing) - WOSB / EDWOSB: up to $4.5M ($7M manufacturing) - SDVOSB: up to $4M ($7M manufacturing)
For vendors, sole-source opportunities exist but are not "easy." You need to position with the contracting officer well before the requirement is finalized — sole-source awards typically follow a multi-year relationship-building effort.