Sole Source Contract

A sole source contract is a federal contract awarded to one company without full and open competition, because the agency has determined that only that contractor can meet the requirement.

What is Sole Source Contract?

Most federal contracts must be competed so any qualified company can bid. A sole source contract is the exception. Instead of competing the work, the agency awards it directly to a single contractor. The Federal Acquisition Regulation (FAR) calls this "other than full and open competition," and it requires a written Justification and Approval (J&A). The J&A must cite one of seven statutory exceptions, such as only one responsible source, unusual and compelling urgency, national security, an international agreement, authorization by statute, specific agency authority, or the public interest. The J&A is published on SAM.gov, so the award is documented even though no RFP competition took place. Some set-aside programs also allow direct awards, like an 8(a) sole source under the 8(a) program. Because the decision is already made, a sole source contract is not an opportunity you can bid on, but it tells you a lot about who an agency trusts.

Why this matters for government contractors

When a solicitation says "sole source" with a J&A attached, there is no competition to enter, so you should not spend proposal hours on it. The real value is intelligence. A sole source award reveals a strong incumbent relationship and an agency that depends on one vendor, which often signals a future recompete you can target. Reading the J&A also shows you exactly why the agency justified going single-source.

Example

An agency needs an urgent software patch that only the original developer can deliver. Instead of running a competition, it cites unusual and compelling urgency, writes a J&A, posts it on SAM.gov, and awards a sole source contract to that developer. You can read more in our sole source contracts guide.

Frequently Asked Questions

Can I bid on a sole source contract?

No. A sole source contract is already decided and awarded to one contractor without competition. There is no open RFP to respond to. Your best move is to track it as a signal and prepare for a future recompete.

What is a Justification and Approval (J&A)?

A J&A is the written document an agency must prepare to award a contract without full and open competition. It explains why only one source can meet the need and cites one of seven statutory exceptions. The J&A is published on SAM.gov so the public can see the reasoning.

How is a sole source contract different from a set-aside?

A set-aside limits competition to a category of companies, such as small businesses, but qualified companies in that category still compete. A sole source award goes to one named contractor with no competition. Some programs, like the 8(a) program, allow direct sole source awards under certain dollar thresholds.

Why does the government use sole source contracts at all?

Federal law prefers competition, but real situations sometimes have only one viable contractor, such as urgent needs, unique expertise, or national security. The sole source path lets the agency act quickly while still documenting the decision through a J&A.

How do sole source awards help my pipeline?

A sole source award shows which contractor an agency already trusts and depends on. That incumbent relationship and the contract end date point to a likely future recompete, giving you time to build relationships and shape your approach before the work is competed.