---
kind: "range"
citation: "41 U.S.C. §§ 3303–3305"
title: "41"
from: "3303"
to: "3305"
count: 3
release: "119-102"
url: "https://uscodex.org/usc/41/3303..3305"
---

# §3303. Exclusion of particular source or restriction of solicitation to small business concerns

- (a) **Exclusion of Particular Source.—**
  - (1) **Criteria for exclusion.—** An [executive agency](/usc/41/3302.md?p=a-1) may provide for the [procurement](/usc/41/111.md) of property or services covered by [section 3301 of this title](/usc/41/3301.md) using competitive procedures but excluding a particular source to establish or maintain an alternative source of supply for that property or service if the agency head determines that to do so would—
    - (A) increase or maintain competition and likely result in reduced overall cost for the [procurement](/usc/41/111.md), or for an anticipated [procurement](/usc/41/111.md), of the property or services;
    - (B) be in the interest of national defense in having a facility (or a producer, manufacturer, or other supplier) available for furnishing the property or service in case of a national emergency or industrial mobilization;
    - (C) be in the interest of national defense in establishing or maintaining an essential engineering, research, or development capability to be provided by an educational or other nonprofit institution or a Federally funded research and development center;
    - (D) ensure the continuous availability of a reliable source of supply of the property or service;
    - (E) satisfy projected needs for the property or service determined on the basis of a history of high demand for the property or service; or
    - (F) satisfy a critical need for medical, safety, or emergency [supplies](/usc/41/115.md).
  - (2) **Determination for class disallowed.—** A determination under [paragraph (1)](#a-1) may not be made for a class of purchases or contracts.
- (b) **Exclusion of Other Than Small Business Concerns.—** An [executive agency](/usc/41/3302.md?p=a-1) may provide for the [procurement](/usc/41/111.md) of property or services covered by [section 3301 of this title](/usc/41/3301.md) using competitive procedures, but excluding other than small business concerns in furtherance of sections 9 and 15 of the Small Business Act ([15 U.S.C. 638](/usc/15/638.md), 644).
- (c) **Nonapplication of Justification and Approval Requirements.—** A contract awarded pursuant to the competitive procedures referred to in subsections [(a)](#a) and [(b)](#b) is not subject to the justification and approval required by [section 3304(e)(1) of this title](/usc/41/3304.md?p=e-1).

# §3304. Use of noncompetitive procedures

- (a) **When Noncompetitive Procedures May Be Used.—** An [executive agency](/usc/41/3302.md?p=a-1) may use procedures other than competitive procedures only when—
  - (1) the property or services needed by the [executive agency](/usc/41/3302.md?p=a-1) are available from only one [responsible source](/usc/41/113.md) and no other type of property or services will satisfy the needs of the [executive agency](/usc/41/3302.md?p=a-1);
  - (2) the [executive agency](/usc/41/3302.md?p=a-1)’s need for the property or services is of such an unusual and compelling urgency that the Federal Government would be seriously injured unless the [executive agency](/usc/41/3302.md?p=a-1) is permitted to limit the number of sources from which it solicits bids or proposals;
  - (3) it is necessary to award the contract to a particular source—
    - (A) to maintain a facility, producer, manufacturer, or other supplier available for furnishing property or services in case of a national emergency or to achieve industrial mobilization;
    - (B) to establish or maintain an essential engineering, research, or development capability to be provided by an educational or other nonprofit institution or a Federally funded research and development center;
    - (C) to procure the services of an expert for use, in any litigation or dispute (including any reasonably foreseeable litigation or dispute) involving the Federal Government, in any trial, hearing, or proceeding before a court, administrative tribunal, or agency, whether or not the expert is expected to testify; or
    - (D) to procure the services of an expert or neutral for use in any part of an alternative dispute resolution or negotiated rulemaking process, whether or not the expert is expected to testify;
  - (4) the terms of an international agreement or treaty between the Federal Government and a foreign government or an international organization, or the written directions of a foreign government reimbursing the [executive agency](/usc/41/3302.md?p=a-1) for the cost of the [procurement](/usc/41/111.md) of the property or services for that government, have the effect of requiring the use of procedures other than competitive procedures;
  - (5) subject to [section 3105 of this title](/usc/41/3105.md), a statute expressly authorizes or requires that the [procurement](/usc/41/111.md) be made through another [executive agency](/usc/41/3302.md?p=a-1) or from a specified source, or the agency’s need is for a brand-name [commercial product](/usc/41/103.md) for authorized resale;
  - (6) the disclosure of the [executive agency](/usc/41/3302.md?p=a-1)’s needs would compromise the national security unless the agency is permitted to limit the number of sources from which it solicits bids or proposals; or
  - (7) the head of the [executive agency](/usc/41/3302.md?p=a-1) (who may not delegate the authority under this paragraph)—
    - (A) determines that it is necessary in the public interest to use procedures other than competitive procedures in the particular [procurement](/usc/41/111.md) concerned; and
    - (B) notifies Congress in writing of that determination not less than 30 days before the award of the contract.
- (b) **Property or Services Deemed Available From Only One Source.—** For the purposes of [subsection (a)(1)](#a-1), in the case of—
  - (1) a contract for property or services to be awarded on the basis of acceptance of an unsolicited research proposal, the property or services are deemed to be available from only one source if the source has submitted an unsolicited research proposal that demonstrates a unique and innovative concept, the substance of which is not otherwise available to the Federal Government and does not resemble the substance of a pending competitive [procurement](/usc/41/111.md); or
  - (2) a follow-on contract for the continued development or production of a [major system](/usc/41/109.md?p=a) or highly specialized equipment, the property may be deemed to be available only from the original source and may be procured through procedures other than competitive procedures when it is likely that award to a source other than the original source would result in—
    - (A) substantial duplication of cost to the Federal Government that is not expected to be recovered through competition; or
    - (B) unacceptable delay in fulfilling the [executive agency](/usc/41/3302.md?p=a-1)’s needs.
- (c) **Property or Services Needed With Unusual and Compelling Urgency.—**
  - (1) **Allowable contract period.—** The contract period of a contract described in [paragraph (2)](#c-2) that is entered into by an [executive agency](/usc/41/3302.md?p=a-1) pursuant to the authority provided under [subsection (a)(2)](#a-2)—
    - (A) may not exceed the time necessary—
      - (i) to meet the unusual and compelling requirements of the work to be performed under the contract; and
      - (ii) for the [executive agency](/usc/41/3302.md?p=a-1) to enter into another contract for the required goods or services through the use of competitive procedures; and
    - (B) may not exceed one year unless the head of the [executive agency](/usc/41/3302.md?p=a-1) entering into the contract determines that exceptional circumstances apply.
  - (2) **Applicability of allowable contract period.—** This subsection applies to any contract in an amount greater than the [simplified acquisition threshold](/usc/41/153.md?p=1).
- (d) **Offer Requests to Potential Sources.—** An [executive agency](/usc/41/3302.md?p=a-1) using procedures other than competitive procedures to procure property or services by reason of the application of paragraph [(2)](#a-2) or [(6)](#a-6) of subsection (a) shall request offers from as many potential sources as is practicable under the circumstances.
- (e) **Justification for Use of Noncompetitive Procedures.—**
  - (1) **Prerequisites for awarding contract.—** Except as provided in paragraphs [(3)](#e-3) and [(4)](#e-4), an [executive agency](/usc/41/3302.md?p=a-1) may not award a contract using procedures other than competitive procedures unless—
    - (A) the contracting officer for the contract justifies the use of those procedures in writing and certifies the accuracy and completeness of the justification;
    - (B) the justification is approved, in the case of a contract for an amount—
      - (i) exceeding $500,000 but equal to or less than $10,000,000, by the advocate for competition for the procuring activity (without further delegation) or by an official referred to in clause [(ii)](#e-1-B-ii) or [(iii)](#e-1-B-iii);
      - (ii) exceeding $10,000,000 but equal to or less than $50,000,000, by the head of the procuring activity or by a delegate who, if a member of the armed forces, is a general or flag officer or, if a civilian, is serving in a position in which the individual is entitled to receive the daily equivalent of the maximum annual rate of basic pay payable for level IV of the Executive Schedule (or in a comparable or higher position under another schedule); or
      - (iii) exceeding $50,000,000, by the senior [procurement](/usc/41/111.md) executive of the agency designated pursuant to [section 1702(c) of this title](/usc/41/1702.md?p=c) (without further delegation); and
    - (C) any required notice has been published with respect to the contract pursuant to [section 1708 of this title](/usc/41/1708.md) and the [executive agency](/usc/41/3302.md?p=a-1) has considered all bids or proposals received in response to that notice.
  - (2) **Elements of justification.—** The justification required by [paragraph (1)(A)](#e-1-A) shall include—
    - (A) a description of the agency’s needs;
    - (B) an identification of the statutory exception from the requirement to use competitive procedures and a demonstration, based on the proposed contractor’s qualifications or the nature of the [procurement](/usc/41/111.md), of the reasons for using that exception;
    - (C) a determination that the anticipated cost will be fair and reasonable;
    - (D) a description of the market survey conducted or a statement of the reasons a market survey was not conducted;
    - (E) a listing of any sources that expressed in writing an interest in the [procurement](/usc/41/111.md); and
    - (F) a statement of any actions the agency may take to remove or overcome a barrier to competition before a subsequent [procurement](/usc/41/111.md) for those needs.
  - (3) **Justification allowed after contract awarded.—** In the case of a [procurement](/usc/41/111.md) permitted by [subsection (a)(2)](#a-2), the justification and approval required by [paragraph (1)](#e-1) may be made after the contract is awarded.
  - (4) **Justification not required.—** The justification and approval required by [paragraph (1)](#e-1) are not required if—
    - (A) a statute expressly requires that the [procurement](/usc/41/111.md) be made from a specified source;
    - (B) the agency’s need is for a brand-name [commercial product](/usc/41/103.md) for authorized resale;
    - (C) the [procurement](/usc/41/111.md) is permitted by [subsection (a)(7)](#a-7); or
    - (D) the [procurement](/usc/41/111.md) is conducted under [chapter 85](/usc/41/chstIV-ch85.md) of this title or section 8(a) of the Small Business Act ([15 U.S.C. 637(a)](/usc/15/637.md?p=a)).
  - (5) **Restrictions on executive agencies.—**
    - (A) **Contracts and procurement of property or services.—** In no case may an [executive agency](/usc/41/3302.md?p=a-1)—
      - (i) enter into a contract for property or services using procedures other than competitive procedures on the basis of the lack of advance planning or concerns related to the amount available to the agency for [procurement](/usc/41/111.md) functions; or
      - (ii) procure property or services from another [executive agency](/usc/41/3302.md?p=a-1) unless the other [executive agency](/usc/41/3302.md?p=a-1) complies fully with the requirements of this division in its [procurement](/usc/41/111.md) of the property or services.
    - (B) **Additional restriction.—** The restriction set out in [subparagraph (A)(ii)](#e-5-A-ii) is in addition to any other restriction provided by law.
- (f) **Public Availability of Justification and Approval Required for Using Noncompetitive Procedures.—**
  - (1) **Time requirement.—**
    - (A) **Within 14 days after contract award.—** Except as provided in [subparagraph (B)](#f-1-B), in the case of a [procurement](/usc/41/111.md) permitted by [subsection (a)](#a), the head of an [executive agency](/usc/41/3302.md?p=a-1) shall make publicly available, within 14 days after the award of the contract, the documents containing the justification and approval required by [subsection (e)(1)](#e-1) with respect to the [procurement](/usc/41/111.md).
    - (B) **Within 30 days after contract award.—** In the case of a [procurement](/usc/41/111.md) permitted by [subsection (a)(2)](#a-2), [subparagraph (A)](#f-1-A) shall be applied by substituting “30 days” for “14 days”.
  - (2) **Availability on websites.—** The documents referred to in [subparagraph (A)](#f-1-A) of paragraph (1) shall be made available on the website of the agency and through a Government-wide website selected by the [Administrator](/usc/41/101.md).
  - (3) **Exception to availability and approval requirement.—** This subsection does not require the public availability of information that is exempt from public disclosure under [section 552(b) of title 5](/usc/5/552.md?p=b).

# §3305. Simplified procedures for small purchases

- (a) **Authorization.—** To promote efficiency and economy in contracting and to avoid unnecessary burdens for agencies and contractors, the [Federal Acquisition Regulation](/usc/41/106.md) shall provide for special simplified procedures for purchases of property and services for amounts—
  - (1) not greater than the [simplified acquisition threshold](/usc/41/153.md?p=1); and
  - (2) greater than the [simplified acquisition threshold](/usc/41/153.md?p=1) but not greater than $5,000,000 for which the contracting officer reasonably expects, based on the nature of the property or services sought and on market research, that offers will include only [commercial products](/usc/41/103.md) or [commercial services](/usc/41/103a.md).
- (b) **Leasehold Interests in Real Property.—** The [Administrator](/usc/41/101.md) of General Services shall prescribe regulations that provide special simplified procedures for acquisitions of leasehold interests in real property at rental rates that do not exceed the [simplified acquisition threshold](/usc/41/153.md?p=1). The rental rate under a multiyear lease does not exceed the [simplified acquisition threshold](/usc/41/153.md?p=1) if the average annual amount of the rent payable for the period of the lease does not exceed the [simplified acquisition threshold](/usc/41/153.md?p=1).
- (c) **Prohibition on Dividing Contracts.—** A proposed purchase or contract for an amount above the [simplified acquisition threshold](/usc/41/153.md?p=1) may not be divided into several purchases or contracts for lesser amounts to use the simplified procedures required by [subsection (a)](#a).
- (d) **Promotion of Competition.—** In using the simplified procedures, an [executive agency](/usc/41/3302.md?p=a-1) shall promote competition to the maximum extent practicable.
- (e) **Compliance With Special Requirements of Federal Acquisition Regulation.—** An [executive agency](/usc/41/3302.md?p=a-1) shall comply with the [Federal Acquisition Regulation](/usc/41/106.md) provisions referred to in [section 1901(e) of this title](/usc/41/1901.md?p=e).