Guide

Sole source contract: what it is and how to find one

Most government contracts are competed openly. A sole source contract is the exception — a purchase made from one vendor without competition. Agencies can do this only under specific legal authority, and they must document the reason. For the right vendor, a sole-source notice is a strong signal: the buyer already knows who they want, or the requirement is so specialised that only one company can meet it.

When a sole source contract is legal

In the US, the Federal Acquisition Regulation (FAR) lists the only acceptable reasons. The most common are:

Only one responsible source. The item or service is unique, patented, or requires specialised expertise no other vendor can provide.

Unusual and compelling urgency. An emergency leaves no time for a full competition.

Industrial mobilisation or expert services.Research, development, or expert advice where competition is impractical.

The agency must publish a justification and approval (J&A) for contracts above certain thresholds. That document is public and is your best clue.

Where sole-source notices appear

SAM.gov — Look for "Justification and Approval" or "J&A" notices, often published before the actual award. They explain why the agency believes only one source is suitable.

Agency forecast pages — Many agencies publish upcoming sole-source or limited-competition requirements as part of their procurement forecast.

Sources-sought notices — These are not sole-source contracts yet, but they ask the market whether anyone else can do the work. A strong response can turn a planned sole source into a competition.

How to respond to a J&A

If you are the named vendor, confirm the requirement matches your capability and prepare a fast, compliant quote. If you are not the named vendor but believe you can meet the need, you can submit a capability statement and challenge the sole-source basis before the J&A is finalised. Timing matters: once the contract is awarded, the window closes.

Sole source vs set-aside

Do not confuse sole source with set-aside. A set-aside restricts competition to a group of vendors (small business, woman-owned, veteran-owned, HUBZone, 8(a)) but still involves competition. A sole source goes to one vendor with no competition at all. A contract can be both set-aside and sole-source in rare cases.

Automating the watch

Bidly monitors SAM.gov, Grants.gov and TED for J&As, sources-sought notices and pre-solicitations. Each notice is scored against your company profile, so you see the sole-source opportunities you are positioned to win — and the ones you can challenge — while the window is still open.

Always verify the final solicitation, eligibility and submission instructions on the original notice at SAM.gov or TED before responding.

Find sole-source and limited-competition opportunities early

Bidly scans SAM.gov, Grants.gov and TED daily. We surface notices that match your profile — including sources-sought and sole-source justifications that appear before the formal solicitation.

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