8.405-6
Limiting sources
Under FAR 8.405-6, you may limit Schedule sources only for specific, documented reasons—and once thresholds are crossed, the justification, posting, and approval rules become mandatory and highly value-dependent.
Overview
- FAR 8.405-6 governs when an ordering activity may restrict competition for orders or BPAs under the Federal Supply Schedule program, even though Schedule orders are generally exempt from FAR Part 6 competition requirements.
- It allows limited-source or brand-name restrictions only in defined circumstances and imposes documentation, justification, approval, and public posting requirements tied to dollar thresholds.
Key Rules
- Limited-sources orders and BPAs
- For actions exceeding the micro-purchase threshold, restricting consideration is permitted only for: urgent and compelling need, only one capable source, or a logical follow-on to a properly competed Schedule order. For actions exceeding the simplified acquisition threshold, a formal limited-sources justification is required.
- Brand-name items peculiar to one manufacturer
- Brand-name specifications may be used only when essential to the Government’s needs and market research shows similar products cannot meet or be modified to meet those needs. Documentation is required above the micro-purchase threshold, and posting to eBuy is required for certain actions.
- Posting and transparency
- For limited-source actions above the simplified acquisition threshold, agencies must generally post the justification within 14 days after award or BPA establishment, or within 30 days for urgent and compelling actions, and keep it posted for at least 30 days. Proprietary and protected information must be screened before release.
- Approval thresholds
- Approval levels escalate by value: contracting officer certification up to $900,000; competition advocate above $900,000 to $20 million; head of procuring activity/designee above $20 million to $90 million (or $150 million for DoD, NASA, Coast Guard); and senior procurement executive above those levels.
Responsibilities
- Contracting Officers: determine whether a valid exception applies, prepare or obtain required documentation/justification, ensure approvals, post required notices, and redact proprietary or protected information.
- Contractors: support the agency with accurate technical and proprietary information when requested and understand that brand-name or limited-source restrictions require documented support.
- Agencies/Requiring Activities: assist in preparing justifications, certify technical support data where applicable, and ensure approval authority matches the acquisition value.
Practical Implications
- This section prevents agencies from using Schedule ordering flexibility to bypass fair opportunity without a documented basis.
- Contractors should expect stronger scrutiny for sole-source, logical follow-on, and brand-name requirements, especially above the simplified acquisition threshold.
- Common pitfalls include weak market research, late postings, inadequate redaction of proprietary data, and obtaining approval from the wrong official.