Title 41Public ContractsRelease 119-73

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

Title 41 › Subtitle Subtitle I— - Federal Procurement Policy › Chapter CHAPTER 33— - PLANNING AND SOLICITATION › § 3303

Last updated Apr 6, 2026|Official source

Summary

An executive agency can run a normal competitive purchase but leave out one particular supplier to create or keep a backup source. The agency head must find that doing so will: raise or keep competition and likely lower total cost; help national defense by keeping a facility or supplier ready in an emergency; keep an important research or engineering ability at a school, nonprofit, or Federally funded research center; ensure a steady, reliable supply; meet expected high demand; or meet a critical medical, safety, or emergency need. The decision cannot block a whole class of purchases. An agency may also limit competition to small businesses to support sections 9 and 15 of the Small Business Act (15 U.S.C. 638, 644). Contracts awarded this way do not need the justification and approval required by section 3304(e)(1).

Full Legal Text

Title 41, §3303

Public Contracts — Source: USLM XML via OLRC

(a)(1)An executive agency may provide for the procurement of property or services covered by section 3301 of this title 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, or for an anticipated procurement, 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.
(2)A determination under paragraph (1) may not be made for a class of purchases or contracts.
(b)An executive agency may provide for the procurement of property or services covered by section 3301 of this title using competitive procedures, but excluding other than small business concerns in furtherance of section 9 and 15 of the Small Business Act (15 U.S.C. 638, 644).
(c)A contract awarded pursuant to the competitive procedures referred to in subsections (a) and (b) is not subject to the justification and approval required by section 3304(e)(1) of this title.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 330341:253(b).June 30, 1949, ch. 288, title III, § 303(b), 63 Stat. 395; July 12, 1952, ch. 703, § 1(m), 66 Stat. 594; Pub. L. 90–268, § 2, Mar. 16, 1968, 82 Stat. 49; Pub. L. 98–369, title VII, § 2711(a)(1), July 18, 1984, 98 Stat. 1175; Pub. L. 98–577, title V, § 504(a)(1), Oct. 30, 1984, 98 Stat. 3086; Pub. L. 103–355, title I, § 1052, Oct. 13, 1994, 108 Stat. 3260.

Reference

Citations & Metadata

Citation

41 U.S.C. § 3303

Title 41Public Contracts

Last Updated

Apr 6, 2026

Release point: 119-73