Reference · Contracting basics & process
Sole-source contract
Contract awarded without full and open competition
A sole-source contract is awarded to a single company without full and open competition, when only one source can meet the need or a statutory exception applies. It requires a written justification and approval documenting why competition was not used.
What it is
Full and open competition is the default, but the FAR allows exceptions — only one responsible source, unusual urgency, or specific statutory authority. A Justification and Approval (J&A) documents and authorizes the sole-source award.
Why it exists
Some needs genuinely have one capable source or can't wait for a full competition; the J&A keeps that decision transparent and accountable.
Who it applies to
Contractors that are the only qualified source, and small businesses eligible for certain sole-source set-aside authorities (for example some 8(a) awards).
Frequently asked
What is a sole-source contract?
A sole-source contract is awarded to one company without full and open competition, when only one source can meet the need or a statutory exception applies. It requires a written Justification and Approval documenting why competition was not used.
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