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Glossary · United States

Sole-source award

A sole-source award is a contract given to one supplier without competition.

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Definition

A sole-source award is a contract given to one supplier without competition. Federal agencies may do this only under exceptions listed in FAR 6.302, such as when only one responsible source can meet the need or the need is unusually urgent, and must document a written justification.

Small-business programs have their own sole-source authorities: certified 8(a), HUBZone, SDVOSB and WOSB firms can receive sole-source awards below set dollar limits.

How it differs

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    vs. Set-aside

    A set-aside limits competition to a group of firms; a sole-source award skips competition entirely. What is Set-aside?

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Questions

What does "sole-source award" mean in procurement?

A sole-source award is a contract given to one supplier without competition. Federal agencies may do this only under exceptions listed in FAR 6.302, such as when only one responsible source can meet the need or the need is unusually urgent, and must document a written justification.

What is the difference between Sole-source award and Set-aside?

A set-aside limits competition to a group of firms; a sole-source award skips competition entirely.

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