Sole-Source Contract (Sole Source)
A contract awarded without competition because the agency has determined only one source can perform the work or because a set-aside program authorizes non-competitive award within a dollar threshold.
Definition
Federal procurement law strongly prefers competition. Sole-source awards under FAR 6.302 require a Justification and Approval (J&A) document explaining why no competition is feasible. Within small-business set-aside programs, however, sole-source awards are allowed up to specific dollar thresholds without the "only one source" finding: 8(a) up to $4.5M ($7M mfg), HUBZone up to $4M ($7M mfg), WOSB/EDWOSB up to $4.5M ($7M mfg), SDVOSB up to $4M ($7M mfg).
When it applies
Sole-source J&A is reviewed within the agency, posted publicly on SAM.gov, and subject to bid-protest by other vendors. Small-business sole-source awards still require the contracting officer to identify a responsible certified firm capable of performing.