6.202
Establishing or maintaining alternative sources
Agencies may exclude a source to establish or maintain alternative suppliers, but must rigorously justify and document the decision with a signed determination and findings.
Overview
FAR 6.202 allows agencies to intentionally exclude a particular source from a contract action to establish or maintain alternative sources for supplies or services, provided certain conditions are met. This exclusion is permissible if it increases or maintains competition, supports national defense, ensures reliable supply, meets high demand, or addresses critical needs. The agency head must justify such exclusions through a detailed determination and findings (D&F), which cannot be made on a class basis. Technical and requirements personnel must supply supporting data, and specific cost reduction estimates are required when competition is the rationale.
Key Rules
- Exclusion to Establish/Maintain Alternative Sources
- Agencies may exclude a source to foster alternative suppliers if it benefits competition, national defense, reliability, demand, or critical needs.
- Determination and Findings (D&F) Requirement
- Each exclusion must be justified by a D&F signed by the agency head or designee, with no class D&Fs allowed.
- Supporting Data
- Technical and requirements staff must provide all necessary data to support the exclusion recommendation.
- Cost Reduction Documentation
- If increased competition is cited, the D&F must detail estimated cost reductions and the methodology used.
Responsibilities
- Contracting Officers: Ensure exclusions are properly justified and documented with a D&F; verify all supporting data is provided.
- Contractors: Understand that exclusions may occur for strategic reasons; may request rationale if excluded.
- Agencies: Agency heads must sign D&Fs; technical staff must provide data; ensure compliance with documentation and justification requirements.
Practical Implications
- This section provides agencies flexibility to manage supply risk and strategic sourcing, but requires rigorous justification and documentation. Failure to properly document exclusions can result in protest or audit findings. Contractors should be aware that exclusions may be based on broader agency needs, not just immediate contract performance.