Sole Source Contract
ProcurementDefinition
A contract awarded to a specific contractor without competitive bidding.
More Information
Sole source contracts are permitted in certain circumstances, including when only one source can meet the requirement or for small purchases from certified small businesses. The 8(a) program allows sole source contracts up to $4.5 million for most industries. SDVOSBs and HUBZone businesses also have sole source authorities.
Example
An 8(a) certified firm receives a $3 million sole source contract to provide specialized engineering services.