Sole source contracts require documented justification. Valid reasons include: unique capability, urgency, statutory authority (like 8(a) sole source), follow-on contracts, or industrial mobilization. The 8(a) program allows sole source awards up to $4.5M for goods and $7M for services. SDVOSB sole source limits are $7M for services and $4.5M for goods. While sole source eliminates competition, the government still negotiates for fair and reasonable pricing.
A specialized environmental remediation firm is the only company with the specific EPA certification needed for a hazardous waste cleanup. The agency issues a sole source contract because no other vendor can perform the work.
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