Glossary
Sole source procurement
A sole source procurement is a noncompetitive award made because the agency has determined that only one supplier can furnish the item or service. It is an exception to the competition mandate that runs through every procurement code, and it is documented as such: a written justification, an approval at a level above the buyer, and in most jurisdictions a public notice of intent before the contract is signed.
For federally funded purchases, 2 CFR 200.320(c) permits noncompetitive procurement only in narrow circumstances, including where the item is available from a single source, where a public emergency will not permit delay, where the federal agency expressly authorizes it in writing, or where competition was solicited and found inadequate.
The short version
- Sole source is not the same as single source. Sole source means only one vendor can perform; single source means the buyer prefers one but others exist.
- The justification is a public document. So is the notice of intent, which is your window to object.
- Brand-name-only specifications are treated as competition-restricting under 2 CFR 200.319 and are a frequent target of challenges.
- If you are the incumbent seeking a sole source renewal, the burden of proof is on the agency, so give them defensible facts.
Why it matters to a bidder
Sole source cuts both ways. As the excluded competitor, the posted notice of intent is a real opportunity: many jurisdictions require the agency to consider objections, and a credible letter demonstrating that you can meet the stated need often forces a competitive solicitation. Respond to the technical justification, not to the fairness of it.
As the vendor being sole sourced, you are the one who has to arm the buyer. Proprietary technology, a sole distributorship, exclusive licensing, compatibility with an installed base, or unique data rights are defensible grounds. Convenience, familiarity and an expiring budget are not, and a weak justification is the kind of thing that surfaces in an audit two years later.
A real example
A county wants to extend its records management system to a new department. The vendor is the only party licensed to modify the source code and the only one who can maintain the existing integration. The purchasing director posts a 14-day notice of intent to sole source. A competitor responds asserting it can replace the whole system for less. The county holds the sole source, because the requirement was defined as extending the existing system, not replacing it. Had the requirement been written as records management generally, the objection would have landed.
How state and local differs from federal
Federally, the equivalent is other than full and open competition under FAR Part 6, requiring a written justification and approval, often published on SAM.gov. State and local practice is more variable and, in a few respects, more transparent to competitors:
- Advance public posting is common. Many states and cities require a notice of intent to sole source with a comment window, which the federal system does not always provide before award.
- Approval sits with a purchasing director or governing board, and for larger amounts may require a vote at a public meeting under the sunshine law.
- Grant money adds a second layer. If federal funds are involved, the local justification must also satisfy 2 CFR 200.320(c), regardless of what local policy would allow.
Common questions
Can I protest a sole source award?
Usually yes, and the cleanest moment is during the posted notice-of-intent window. Waiting until after award narrows your options considerably.
Is a brand-name specification a sole source?
Not automatically, but a brand-name-only spec without an or-equal provision is treated as restricting competition and is often challenged on that basis.
What is an emergency procurement, then?
A separate exception based on urgency rather than uniqueness. See emergency procurement.
How do I find sole source notices?
They post on the agency's procurement page, often in a separate list from open solicitations. They are among the most under-watched notices in public procurement.