2.5 Competition Requirements & Justifications for Other Than Full and Open Competition (FAR Part 6)
Key Takeaways
- The Competition in Contracting Act of 1984 (CICA) mandates that Contracting Officers promote and provide for full and open competition in soliciting offers and awarding government contracts (FAR Part 6).
- FAR Part 6 establishes three standards of competition: Full and Open Competition (Subpart 6.1), Full and Open Competition After Exclusion of Sources (Subpart 6.2), and Other Than Full and Open Competition (Subpart 6.3).
- FAR Subpart 6.3 contains exactly 7 statutory exceptions authorizing non-competitive (sole-source) contract awards, each requiring a written Justification and Approval (J&A).
- J&A statutory approval thresholds under FAR 6.304 are strictly defined: <= $900k (Contracting Officer), > $900k to $20M (Competition Advocate), > $20M to $90M (Head of Contracting Activity), > $90M (Senior Procurement Executive).
- FAR 6.302-2 (Unusual & Compelling Urgency) requires agencies to limit performance periods to the minimum time necessary to satisfy the emergency (typically <= 1 year) and post J&As within 30 days post-award.
2.5 Competition Requirements & Justifications for Other Than Full and Open Competition (FAR Part 6)
Full and open competition is the primary mandate governing federal procurement. Codified in the Competition in Contracting Act of 1984 (CICA) and implemented in FAR Part 6 (Competition Requirements) under statutory authorities 10 U.S.C. 3201 (for DoD, NASA, Coast Guard) and 41 U.S.C. 3301 (for civilian agencies), Contracting Officers are required to promote and provide for full and open competition in soliciting offers and awarding government contracts.
The Three Standards of Competition (FAR Part 6)
FAR Part 6 categorizes contract solicitations into three distinct competitive standards:
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| THREE STANDARDS OF COMPETITION |
| |
| 1. Full and Open Competition (FAR Subpart 6.1) |
| • All responsible sources are permitted to compete without restriction. |
| • Executed via Sealed Bidding (FAR Part 14) or Contracting by Negotiation |
| (FAR Part 15). |
| |
| 2. Full and Open Competition After Exclusion of Sources (FAR Subpart 6.2) |
| • Competition restricted to specific categories of qualified vendors. |
| • Used for Small Business Set-Asides (8(a), HUBZone, SDVOSB, WOSB) under |
| FAR Part 19, or to establish/maintain alternate supply sources. |
| |
| 3. Other Than Full and Open Competition (FAR Subpart 6.3) |
| • Non-competitive (sole-source) procurement authorized ONLY under one of 7 |
| explicit statutory exceptions requiring a written Justification & Approval. |
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The Seven Statutory Exceptions to Full & Open Competition (FAR 6.302)
Agencies may award contracts without full and open competition only when authorized by one of the seven statutory exceptions detailed in FAR 6.302:
| Citation | Statutory Exception | Operational Application & Mandates |
|---|---|---|
| FAR 6.302-1 | Only One Responsible Source | Used when supplies or services are available from only one responsible source (e.g., patent rights, unique demonstration capability, or follow-on acquisitions for major systems where duplication of cost would not be recovered). |
| FAR 6.302-2 | Unusual & Compelling Urgency | Used when urgent need threatens serious financial or operational injury to the Government. Requires limiting performance period to minimum necessary (typically <= 1 year). J&A may be approved post-award. |
| FAR 6.302-3 | Industrial Mobilization / R&D / Expert | Used to maintain vital industrial facility/supplier capabilities for national emergencies, establish essential engineering/R&D capability, or contract for expert legal services. |
| FAR 6.302-4 | International Agreement | Authorized by terms of an international agreement, treaty, or formal written direction from a foreign government paying for Foreign Military Sales (FMS). |
| FAR 6.302-5 | Authorized or Required by Statute | Authorized when statute explicitly mandates sole-source award to a specified entity (e.g., Federal Prison Industries/UNICOR, AbilityOne, or 8(a) sole-source awards). |
| FAR 6.302-6 | National Security | Authorized when disclosure of agency requirements would compromise national security or reveal classified information. |
| FAR 6.302-7 | Public Interest | Reserved for extraordinary cases where the Agency Head executes a written determination that sole-source is in public interest. Requires written notification to Congress 30 days prior to award. |
Justification and Approval (J&A) Mandates (FAR 6.303 & 6.304)
To execute a contract under FAR Subpart 6.3, the Contracting Officer must draft a comprehensive Justification and Approval (J&A) document under FAR 6.303, demonstrating that non-competitive procurement is legally valid.
Mandatory Elements of a J&A (FAR 6.303-2)
- Identification of agency, contracting activity, and specific contract action.
- Nature and description of the supply or service required.
- Identification of statutory authority permitting other than full and open competition.
- Demonstration that the proposed contractor's unique qualifications or urgency requires sole-source.
- Description of market research efforts conducted (or statement of why market research was not conducted).
- Determination by the CO that the anticipated cost to the Government will be fair and reasonable.
- Actions planned to remove or overcome barriers to competition before future acquisitions.
Statutory J&A Approval Thresholds (FAR 6.304)
Approval authority for a J&A is strictly governed by estimated contract dollar value (including all option periods):
| Contract Dollar Value (Inc. Options) | Statutory J&A Approval Authority (FAR 6.304) |
|---|---|
| At or Below $900,000 | Contracting Officer (CO) (warranted CO sign-off). |
| Over $900,000 to $20,000,000 | Competition Advocate for the procuring activity (designated per FAR 6.501). |
| Over $20,000,000 to $90,000,000 | Head of Contracting Activity (HCA) (or designated General/Flag Officer / SES official). |
| Exceeding $90,000,000 | Senior Procurement Executive (SPE) of the executive agency (non-delegable). |
Public Posting & Redaction of J&As (FAR 6.305)
Under FAR 6.305, agencies must make approved J&A documents publicly available on the GPE (SAM.gov) within 14 calendar days after contract award (or within 30 calendar days for awards executed under Unusual and Compelling Urgency, FAR 6.302-2).
- Exemptions from Public Posting: J&As executed under National Security (FAR 6.302-6) or direct statutory awards (FAR 6.302-5) for AbilityOne/UNICOR are exempt.
- Mandatory Redactions: The CO must redact contractor proprietary data, trade secrets, and source selection sensitive information prior to public posting.
Exam Focus: Worked Scenario — Sole Source J&A Threshold Analysis
Scenario: The Department of Homeland Security requires a non-competitive follow-on contract for proprietary border surveillance radar software maintenance. The software is owned exclusively by RadarTech Inc., and technical data rights are proprietary. The estimated contract value is $32 million over a 5-year period ($6M base + 4 one-year options at $6.5M each).
Step-by-Step Statutory Execution:
- Determine Statutory Authority: FAR 6.302-1 (Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Needs).
- Calculate Total Contract Value: $32 million total (must include base plus all option periods per FAR 6.304).
- Determine Approval Authority: $32M falls into the Over $20M to $90M tier. The J&A must be approved in writing by the Head of Contracting Activity (HCA).
- Public Posting: Within 14 days of award, the CO must redact proprietary software algorithms and post the approved J&A on SAM.gov.
An agency requires a non-competitive sole-source contract for specialized satellite software valued at $95 million (including options). Under FAR 6.304, who holds the statutory approval authority for this Justification and Approval (J&A)?
Which of the following statutory exceptions under FAR 6.302 permits a non-competitive contract award but REQUIRES the Agency Head to submit a written notification to Congress at least 30 days prior to contract award?
When soliciting a requirement under FAR 6.302-2 (Unusual and Compelling Urgency), what limitation does FAR Part 6 place on the contract performance period?
Under FAR Subpart 6.2, restricting a solicitation to qualified small business concerns under the 8(a), HUBZone, SDVOSB, or WOSB programs is legally categorized as which standard of competition?