Sole Source Contracting Guide: How to Win Non-Competitive Federal Awards
Complete guide to sole source government contracts. Learn about justification requirements, FAR authority, how agencies identify sole source opportunities, and strategies to position your business for non-competitive awards.
Quick Answer
Sole source contracting allows agencies to award contracts without competition when only one source can meet the government's needs. This includes unique capabilities, urgent requirements, or statutory authority for small business set-asides. Small businesses can receive sole source awards up to $4.5 million ($9 million for manufacturing) through 8(a), HUBZone, SDVOSB, and WOSB programs.
What is Sole Source Contracting?
Sole source contracting is a procurement method where an agency awards a contract to a specific contractor without conducting a full and open competition. While competition is the preferred method for federal acquisitions, certain circumstances allow agencies to bypass competition and award directly to a single source.
Sole source awards require documented justification and approval at various levels depending on the contract value. These awards represent a significant portion of federal spending and offer unique opportunities for contractors who can position themselves appropriately.
Common Sole Source Scenarios
- Only one contractor possesses the required proprietary technology
- Urgent requirements where competition would cause unacceptable delay
- Authorized small business set-aside programs (8(a), HUBZone, etc.)
- Continuation of critical services during contract transitions
- National security or public interest determinations
Justification & Approval Process
Most sole source awards require a written Justification and Approval (J&A) document that must be approved before contract award.
J&A Required Elements
- Description of supplies/services
- Statutory authority cited (FAR 6.302-X)
- Demonstration that only one source can meet need
- Market research conducted
- Actions to increase competition in future
- Fair and reasonable price determination
- Technical and requirements certifications
- Competition advocate review (certain thresholds)
Approval Thresholds
Small Business Sole Source Programs
Federal law provides specific sole source authority for various small business programs, making these the most accessible path to non-competitive awards.
8(a) Business Development
Most flexible program with direct award authority through SBA. Includes business development support.
HUBZone Program
For firms in Historically Underutilized Business Zones. Location-based eligibility requirements.
SDVOSB Program
For service-disabled veteran-owned small businesses. VA has higher thresholds.
WOSB/EDWOSB Program
For women-owned small businesses in industries with underrepresentation.
Positioning for Sole Source Awards
Build Agency Relationships
Engage with program offices, attend industry days, respond to RFIs. Agencies award sole source to contractors they know and trust.
Develop Unique Capabilities
Proprietary technology, specialized expertise, or patents create sole source opportunities under FAR 6.302-1.
Leverage Certifications
8(a), HUBZone, SDVOSB, and WOSB certifications provide statutory sole source authority with dollar thresholds.
Excel on Current Contracts
Outstanding performance on existing work positions you for follow-on sole source awards citing continuity of services.
Help Write the J&A
Provide capability statements and market research that supports the agency's justification for sole source.
Monitor Sources Sought
Agencies use Sources Sought to determine if competition exists. Respond quickly to influence procurement strategy.
Ethical Considerations
While positioning for sole source is legitimate, avoid creating artificial barriers to competition. Agencies must justify sole source awards, and false or misleading information can result in contract termination and debarment.
The Award Process
Typical Sole Source Timeline
Requirement Identified
Program office determines need; may issue Sources Sought notice
Market Research
Agency documents that only one source can meet requirements
J&A Development
Contracting officer drafts justification citing appropriate authority
J&A Approval
Appropriate authority reviews and approves justification
Proposal Request
Agency requests proposal from identified contractor
Negotiation
Price negotiations; agency must determine fair and reasonable pricing
Award
Contract awarded; J&A posted publicly (if over $750K)
Risks & Considerations
Risks for Contractors
- • Intense price scrutiny (no competition to establish market)
- • Potential for protests from excluded competitors
- • Higher audit likelihood for cost-type contracts
- • Reputational risk if award is challenged
- • Pressure to accept less favorable terms
Risk Mitigation
- • Maintain thorough cost documentation
- • Support agency's J&A with factual information
- • Price fairly—don't exploit sole source position
- • Document your unique qualifications
- • Keep excellent performance records
Frequently Asked Questions
Can I request a sole source award?
You can suggest it and provide supporting information, but the decision rests with the agency. Focus on demonstrating your unique qualifications and helping the agency document justification.
Are sole source contracts published on SAM.gov?
Sole source awards over $25,000 must be published. However, the solicitation phase is skipped—you'll only see the award notice. Sources Sought notices may indicate potential sole source opportunities.
Can sole source awards be protested?
Yes, competitors can protest that the justification is inadequate or that competition was improperly excluded. Protests are filed with GAO or the agency. Strong J&A documentation reduces protest risk.
What's the difference between sole source and single bid?
Sole source means no competition was held. Single bid means competition was held but only one offer was received. Single bid awards don't require J&A documentation but may face additional price scrutiny.
How do 8(a) sole source awards work?
Agencies can offer requirements to SBA, which then awards to an 8(a) firm. No J&A is required for awards under the threshold ($4.5M/$9M). SBA must accept the offer and identify a capable 8(a) contractor.
Find Sole Source Opportunities with BidFinds
While sole source opportunities aren't publicly solicited, you can find Sources Sought notices and build relationships through competitive contracts. BidFinds helps you discover all federal opportunities.
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