Authorized or required by statute
FAR 6.302-5 allows agencies to limit competition and make sole source awards when expressly authorized or required by statute, but strict documentation and statutory limitations apply.
Overview
FAR 6.302-5 outlines the circumstances under which agencies may limit competition and award contracts without full and open competition when authorized or required by statute. This section provides the legal basis for sole source or directed acquisitions when a statute specifically mandates or authorizes procurement from a particular source or through another agency. It also covers brand name commercial product purchases for resale and lists specific statutory programs (e.g., UNICOR, AbilityOne, 8(a), HUBZone, WOSB, Veterans Benefits Act) where this authority applies. The section details limitations, including when such authority cannot be used, and specifies requirements for written justifications and approvals, with certain exceptions for specific programs and contract values.
Key Rules
- Statutory Authorization or Requirement
- Agencies may bypass full and open competition if a statute expressly authorizes or requires acquisition from a specified source or through another agency, or for brand name commercial products for resale.
- Application to Specific Programs
- Applies to acquisitions from UNICOR, AbilityOne, Government Printing Office, and sole source awards under 8(a), HUBZone, WOSB, and Veterans Benefits Act programs.
- Limitations on Use
- Cannot be used for contracts to non-Federal entities unless the law specifically identifies the entity, references the correct statute, and allows bypassing merit-based selection, with limited exceptions.
- Justification and Approval Requirements
- Written justifications and approvals are generally required unless the statute mandates the source, or for certain programs and contract values (e.g., 8(a) contracts ≤ $30 million).
- Brand Name Resale Purchases
- Authority for brand name purchases is limited to resale through commissaries or similar facilities, typically for customer-preferred items.
Responsibilities
- Contracting Officers: Must verify statutory authority, ensure compliance with justification and approval requirements, and apply limitations appropriately.
- Contractors: Should understand eligibility for sole source or directed awards under applicable statutes and be prepared to provide supporting documentation if required.
- Agencies: Must oversee proper application of statutory authorities and maintain records of justifications and approvals.
Practical Implications
- This section enables agencies to fulfill statutory mandates or policy objectives by directing contracts to specific sources, but requires careful documentation and adherence to limitations. Contractors should be aware of the programs and statutes that may allow for noncompetitive awards and ensure compliance with all procedural requirements. Common pitfalls include failing to obtain required justifications or misapplying statutory authority.