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What is a sole-source government contract?

A sole-source award is a contract made without full and open competition, permitted only on one of the statutory grounds in FAR 6.302 and normally requiring a written justification and approval, or under the specific sole-source authorities of the small-business programs.

Also written as: sole source contract, noncompetitive award, other than full and open competition, justification and approval.

The default rule is competition. FAR Part 6 permits an exception only on enumerated grounds — one responsible source, unusual and compelling urgency, industrial mobilization or expert services, an international agreement, statutory authorization, national security, or the public interest — and FAR 6.303 requires the contracting officer to justify the use of one in writing and have it approved.

The small-business programs supply their own sole-source authorities, and those are the ones a small firm can actually use. An 8(a) requirement may be awarded sole source below the competitive thresholds in FAR 19.805-1; HUBZone, SDVOSB and WOSB have parallel authorities in their own subparts.

This is the practical argument for certification. A set-aside narrows the field of competitors; a sole-source authority can remove the competition entirely for a requirement a contracting officer has decided you are the right firm for. Neither happens without the buyer knowing you exist, which is what capability statements and market-research responses are for.

What this means when you bid

Sole source is not something you apply for. It is something a contracting officer does when they already know your firm, your code and your certification.

Sole source: the published figures

Each figure below was read from the regulation cited beside it on 2026-08-04. Thresholds are adjusted for inflation and changed by statute — follow the citation and confirm the figure in effect on your solicitation's date before you rely on it.

8(a) requirement must be competed rather than awarded sole source above
$8.5 million (manufacturing NAICS codes) / $5.5 million (all other acquisitions)

Anticipated total contract value including options. These ceilings are adjusted for inflation — check FAR 19.805-1 before relying on the figure.

FAR 19.805-1 · verified 2026-08-04

Where this definition comes from

Federal contracting is one of the few fields where the authoritative answer is free, public and one click away. These are the sources this page is built from — go and read them.

This page explains a term in plain English and cites the authority it comes from. It is not legal advice, and the regulation governs where this page and the regulation differ.

Free tools for government contractors

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Sole source— common questions

What is a sole-source government contract?
A sole-source award is a contract made without full and open competition, permitted only on one of the statutory grounds in FAR 6.302 and normally requiring a written justification and approval, or under the specific sole-source authorities of the small-business programs.
What is the 8(a) requirement must be competed rather than awarded sole source above for Sole source?
$8.5 million (manufacturing NAICS codes) / $5.5 million (all other acquisitions), per FAR 19.805-1. Anticipated total contract value including options. These ceilings are adjusted for inflation — check FAR 19.805-1 before relying on the figure. This figure was read from that source on 2026-08-04; thresholds are revised, so check the citation before relying on it in a bid.
Why does a sole-source award matter when you are bidding?
Sole source is not something you apply for. It is something a contracting officer does when they already know your firm, your code and your certification.