Compliance Insight
Sole-Source Contracting Under FAR 19.1406: A Contracting Officer's Decision Framework
FAR 19.1406 gives contracting officers the authority to award sole-source contracts to SDVOSBs without full competition. This guide provides the decision framework, dollar thresholds, and documentation requirements for compliant sole-source awards.
Reviewed March 29, 2026 • Published March 5, 2026
Author: Patriot Bio Supply Policy Desk
Reviewed by: Patriot Bio Supply Compliance Operations
Every week, contracting officers face the same pressure: award faster, spend less, document more. Sole-source authority under FAR 19.1406 is one of the most underused tools for resolving this tension. When used correctly, it can cut 60-90 days from the procurement timeline while simultaneously satisfying SDVOSB small business goals.
The key word is correctly. Sole-source does not mean no documentation. It means streamlined competition with rigorous justification. This article provides the decision framework.
The Three-Part Test
Before exercising sole-source authority under FAR 19.1406, the contracting officer must establish three conditions:
- Only one SDVOSB can satisfy the requirement at a fair and reasonable price
- The anticipated award value does not exceed $5M (manufacturing NAICS) or $5M (all other NAICS codes)
- The SDVOSB is a responsible contractor, VetCert-verified, and has a reasonable expectation of successful performance
All three conditions must be met. If two or more SDVOSBs can satisfy the requirement, the CO must use set-aside procedures under FAR 19.1405 instead of sole-source.