Sole Source
Sole Source Contract
Contract TypesDefinition
A sole-source contract is awarded to a single contractor without competition. Federal agencies can use sole-source authority when only one vendor can fulfill the requirement, or under specific small business programs (8(a), SDVOSB, HUBZone, WOSB) where statutory authority permits direct awards up to certain dollar thresholds.
Sole-source thresholds for small business set-aside programs: 8(a) — up to $4.5M services / $7M manufacturing; SDVOSB — up to $5M services / $7M manufacturing; HUBZone — up to $4.5M services / $7M manufacturing; WOSB — up to $4.5M services / $7M manufacturing.
Outside of small business programs, sole-source awards require justification (called a J&A — Justification and Approval) explaining why competition isn't feasible. Common justifications include unique capabilities, urgency, or follow-on work where switching contractors would be impractical.
For small businesses with set-aside certifications, proactively marketing your capabilities to contracting officers can lead to sole-source opportunities. If you can demonstrate that you're the only certified firm capable of performing the work, the CO can award directly to you.
Frequently Asked Questions
What is a sole source contract?
A sole-source contract is awarded to one contractor without competition. Agencies use it when only one vendor can meet the requirement, or under small business programs — 8(a), SDVOSB, HUBZone, WOSB — whose statutes permit direct awards up to set dollar thresholds.
What is an 8(a) sole source contract?
A direct award to a certified 8(a) firm without competition, permitted under the 8(a) Business Development program up to statutory dollar thresholds; above those thresholds, 8(a) requirements are competed among 8(a) firms. For firms holding the certification, it is one of the fastest paths to a first federal contract.
What is the difference between sole source and single source?
Sole source means only one vendor can provide the product or service, so competition is impossible. Single source means multiple vendors could provide it, but the agency chooses to solicit just one. The two trigger different justification requirements.
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