8(m) Sole Source


In an effort to help small, disadvantaged businesses compete in the market place the Small Business Administration (SBA) created a business development program which offers small businesses contracting opportunities to develop their businesses and compete in the marketplace. One method of contracting to the small businesses in industry is contracting via a Sole Source vehicle, in which the customer can direct buy with certified contractors. The sole source authority will be allowed for industries in which WOSB  set-asides are authorized, and the Contracting Officer, through market research, cannot identify two or more WOSBs that can perform the requirement at a fair and reasonable price, but does identify one WOSB  that can perform. Awards may be made for sole source contracts, including options, up to a ceiling of $4 million for goods and services.


The sole source vehicle provides agencies a simplified and shortened acquisition procedure:

  • Reduced administration and costs: procurement process and time
  • Best value, cost effective prices: agency negotiates with the firm directly to get the best value.
  • AM Pierce Small Business Classification: 8(m), WOSB, SB

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