What is a Sole Source Contract?
Also known as: Sole-source award, Noncompetitive award
A sole source contract is awarded to a single vendor without full competition, usually because only one firm can meet the need or a statutory authority allows it. Certain programs — like 8(a), HUBZone, SDVOSB, and WOSB — also permit sole-source awards up to defined dollar thresholds.
Common bases for sole source
- Only one responsible source can provide the supply or service.
- Unusual and compelling urgency.
- Socio-economic program authority (for example, an 8(a) sole-source award).
- Follow-on work where a switch would cause unacceptable delay or cost.
Why it matters for small business
Sole-source authority in set-aside programs is a major advantage: an 8(a) or SDVOSB firm can be awarded work directly, without competing, up to program-specific dollar limits. Building relationships with contracting officers is key to capturing these.
Frequently asked questions
Can any small business get a sole-source contract?
Not automatically. Sole-source set-aside authority applies to specific certified programs (8(a), HUBZone, SDVOSB, WOSB/EDWOSB) within dollar thresholds, and the agency must justify the noncompetitive approach.
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