Title 10Armed ForcesRelease 119-73not60

§3203 Exclusion of Particular Source or Restriction of Solicitation to Small Business Concerns

Title 10 › Subtitle Subtitle A— General Military Law › Part V— ACQUISITION › Subpart B— Acquisition Planning › Chapter 221— PLANNING AND SOLICITATION GENERALLY › § 3203

Last updated Apr 3, 2026|Official source

Summary

An agency head can run a competitive purchase but leave out a particular supplier so a new or backup source can be started or kept. That can happen only if the head finds one of these reasons: it will increase or keep competition and likely cut costs; it helps national defense by keeping a facility or supplier ready for an emergency or mobilization; it helps defense by keeping key research or engineering work at a nonprofit or federally funded research center; it keeps a reliable supply; it meets projected needs based on past high demand; or, for medical, safety, or emergency supplies, it fills a critical need. They cannot use this for an entire class of purchases or contracts. An agency may also hold competitions that only small businesses can win to support small business programs. Contracts made this way do not need the usual written justification and approval otherwise required.

Full Legal Text

Title 10, §3203

Armed Forces — Source: USLM XML via OLRC

(a)(1)The head of an agency may provide for the procurement of property or services covered by chapter 137 legacy provisions using competitive procedures but excluding a particular source in order to establish or maintain an alternative source or sources of supply for that property or service if the head of the agency determines that to do so—
(A)would increase or maintain competition and would likely result in reduced overall costs for such procurement, or for any anticipated procurement, of property or services;
(B)would 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)would 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)would ensure the continuous availability of a reliable source of supply of such property or service;
(E)would satisfy projected needs for such property or service determined on the basis of a history of high demand for the property or service; or
(F)in the case of medical supplies, safety supplies, or emergency supplies, would satisfy a critical need for such supplies.
(2)A determination under paragraph (1) may not be made for a class of purchases or contracts.
(b)The head of an agency may provide for the procurement of property or services covered by chapter 137 legacy provisions using competitive procedures, but excluding concerns 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)(1) and (b) shall not be subject to the justification and approval required by section 3204(e)(1) of this title.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Codification The text of subsec. (b) of section 2304 of this title, which was transferred to this section and amended by Pub. L. 116–283, § 1811(d)(2), was based on Pub. L. 98–369, div. B, title VII, § 2723(a)(1)(C), July 18, 1984, 98 Stat. 1187; Pub. L. 98–577, title V, § 504(b)(1), Oct. 30, 1984, 98 Stat. 3086; Pub. L. 99–661, div. A, title XIII, § 1343(a)(14), Nov. 14, 1986, 100 Stat. 3993; Pub. L. 101–189, div. A, title VIII, 853(d), Nov. 29, 1989, 103 Stat. 1519; Pub. L. 102–484, div. A, title VIII, § 801(h)(2), Oct. 23, 1992, 106 Stat. 2445; Pub. L. 103–355, title I, § 1002, Oct. 13, 1994, 108 Stat. 3249; Pub. L. 115–232, div. A, title VIII, § 812(a)(2)(C)(v), Aug. 13, 2018, 132 Stat. 1847.

Prior Provisions

A prior section 3203, act Aug. 10, 1956, ch. 1041, 70A Stat. 173; Pub. L. 85–861, § 1(64), Sept. 2, 1958, 72 Stat. 1463, prescribed authorized strength of Regular Army in members on active duty, exclusive of officers candidates, prior to repeal by Pub. L. 96–513, title II, § 202, title VII, § 701, Dec. 12, 1980, 94 Stat. 2878, 2955, effective Sept. 15, 1981.

Amendments

2021—Subsec. (a). Pub. L. 116–283, § 1811(d)(2)(A), redesignated subsec. (b) of section 2304 of this title as subsec. (a) of this section and inserted heading. Subsec. (a)(1). Pub. L. 116–283, § 1811(d)(2)(A)–(C), inserted heading, substituted “covered by chapter 137 legacy provisions” for “covered by this chapter” in introductory provisions, and realigned margins of subpars. (A) to (F). Subsec. (a)(2). Pub. L. 116–283, § 1811(d)(2)(F), redesignated par. (4) as (2), inserted heading, and realigned margin. Former pars. (2) and (3) redesignated subsecs. (b) and (c), respectively. Subsec. (b). Pub. L. 116–283, § 1811(d)(2)(D), redesignated subsec. (a)(2) as (b), inserted heading, and substituted “chapter 137 legacy provisions” for “this section”. Subsec. (c). Pub. L. 117–81 substituted “subsections (a)(1) and (b)” for “paragraphs (1) and (2)”. Pub. L. 116–283, § 1811(d)(2)(E), redesignated subsec. (a)(3) as (c), inserted heading, and substituted “section 3204(e)(1) of this title” for “subsection (f)(1)”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2021 AmendmentAmendment by Pub. L. 117–81 to take effect immediately after the

Amendments

made by title XVIII of Pub. L. 116–283 have taken effect, see section 1701(a)(3) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and

Effective Date

note below.

Effective Date

Section and amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as an

Effective Date

of 2021 Amendment note preceding section 3001 of this title.

Reference

Citations & Metadata

Citation

10 U.S.C. § 3203

Title 10Armed Forces

Last Updated

Apr 3, 2026

Release point: 119-73not60