Limiting sources
Limiting sources under Federal Supply Schedules requires thorough justification, documentation, and public posting to ensure transparency and compliance with competition requirements.
Overview
FAR 8.405-6 outlines the requirements and procedures for limiting sources when placing orders or establishing Blanket Purchase Agreements (BPAs) under Federal Supply Schedules (FSS). While FSS orders are exempt from FAR Part 6 competition requirements, agencies must justify and document any restrictions on competition, especially when exceeding the micro-purchase threshold. The regulation details acceptable circumstances for limiting sources, such as urgent needs, unique capabilities, or logical follow-ons, and sets out specific documentation, approval, and public posting requirements based on order value and justification type. It also addresses the use of brand-name specifications and the necessary steps to ensure transparency and compliance, including redaction of proprietary data and exceptions for national security.
Key Rules
- Justification for Limiting Sources
- Orders or BPAs exceeding the micro-purchase threshold must be justified if competition is restricted, citing urgency, unique capabilities, or logical follow-on work.
- Brand-Name Justifications
- Brand-name specifications are only allowed if essential and market research confirms no alternatives; documentation is required at the order or BPA level.
- Documentation and Posting
- Justifications and supporting documents must be posted publicly (e.g., on SAM.gov and eBuy) within specified timeframes, with exceptions for security or impracticality.
- Approval Levels
- Approval authority for justifications escalates with order value, from the contracting officer to senior procurement executives for high-value orders.
Responsibilities
- Contracting Officers: Prepare, review, redact, and post justifications; ensure compliance with approval and posting requirements; protect proprietary and sensitive data.
- Contractors: Provide necessary information for justifications; review redacted justifications for proprietary data if requested.
- Agencies: Oversee compliance, assist with justification preparation, and ensure proper approval levels are met.
Practical Implications
- This section ensures transparency and fairness when competition is limited under FSS orders, protecting against improper sole-sourcing.
- Contractors must be prepared to support justifications and understand posting requirements.
- Common pitfalls include inadequate documentation, missed posting deadlines, and failure to properly redact proprietary information.