Sole-source contract
Also called: Sole source, Noncompetitive award, Directed award
Updated
What is Sole-source contract?
A sole-source contract is a contract an agency awards to one company without competing it. It is allowed only on a legal basis: one of the FAR Part 6 exceptions backed by a justification, a small business program authority such as 8(a), HUBZone, SDVOSB or WOSB within its limits, or simplified acquisition rules.
The legal routes to a sole-source award
Under FAR Part 6, an agency may limit competition only for one of the listed reasons, documented in a justification and approval. Separately, FAR Part 19 and the SBA rules allow sole-source awards to eligible 8(a), HUBZone, SDVOSB and WOSB firms when conditions are met, including dollar limits that differ by program and change over time; check the current FAR and SBA text before relying on a number.
Sole source does not mean no proposal. The agency still asks for a technical and price proposal, negotiates, and must find the price fair and reasonable.
How companies earn sole-source work
Sole-source awards usually come from relationships and proof built before any notice: a clear capability statement, past performance the program office knows, the right certifications, and early conversations during market research. An agency must be able to show the award makes sense, so make that case easy with specific, verifiable facts.
For competitors, a notice of intent to sole-source is a signal to respond quickly if you can do the work. For state and local buyers the idea is the same, under each jurisdiction's own procurement code and its sole-source justification and posting rules.
Sole-source contract in ProposalWorkspace
In ProposalWorkspace the company profile holds your certifications and set-aside status, and each opportunity gets a 0-100 match score that weighs set-aside fit with NAICS, PSC, agency, state and keywords, so the notices you qualify for rise to the top.
Sole-source contract: questions and answers
Do sole-source awards still need a proposal?
Yes. The agency requests a proposal, evaluates it and negotiates. The difference is that no other offers are being compared, but the price must still be found fair and reasonable.
Which small business programs allow sole-source awards?
The 8(a), HUBZone, SDVOSB and WOSB programs each allow sole-source awards under conditions and dollar limits set in FAR Part 19 and the SBA rules. Check the current limits before planning around one.
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