Title 41, Public ContractsRelease 119-110

§3303 Exclusion of Particular Source or Restriction of Solicitation to Small Business Concerns

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

Last updated Sep 22, 2026|Official source

Summary

An executive agency may run a competition under section 3301 but leave out a particular current supplier to set up or keep an alternative source. The agency head must decide that doing this will do one of several things, such as increase or keep competition and likely lower overall cost; help national defense by keeping a supplier or facility ready for emergencies or mobilization; keep essential research or development capability at an educational, nonprofit, or Federally funded research center; make sure a reliable supply stays available; meet expected needs based on past high demand; or fill a critical medical, safety, or emergency need. The agency cannot make this kind of exclusion for an entire class of purchases or contracts. An agency may also limit a competition so only small businesses can win, under 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)Exclusion of Particular Source.—
(1)Criteria for exclusion.—
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)Determination for class disallowed.—
A determination under paragraph (1) may not be made for a class of purchases or contracts.
(b)Exclusion of Other Than Small Business Concerns.—
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)Nonapplication of Justification and Approval Requirements.—
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 41, Public Contracts

Last Updated

Sep 22, 2026

Release point: 119-110