8.405-6 Limited sources justification and approval.

1. Orders placed under FSS are exempt from the requirements in Part 6. However, an ordering activity must justify its action when restricting consideration—
   1. Of Schedule contractors to fewer than required in 8.405-1 or 8.405-2; or
   2. To an item peculiar to one manufacturer (e.g., a particular brand name, product, or a feature of a product, peculiar to one manufacturer). A brand name item, whether available on one or more Schedule contracts, is an item peculiar to one manufacturer. Brand name specifications shall not be used unless the particular brand name, product, or feature is essential to the government’s requirements, and market research indicates other companies’ similar products, or products lacking the particular feature, do not meet, or cannot be modified to meet, the agency’s needs.
2. Circumstances that may justify restriction cited in paragraph (a)(1) of this subsection include—
1. Only one source is capable of responding due to the unique or specialized nature of the work;
2. The new work is a logical follow-on to an original FSS order provided that the original order was placed in accordance with the applicable FSS ordering procedures. The original order must not have been previously issued under sole source or limited source procedures;
3. An urgent and compelling need exists, and following the ordering procedures would result in unacceptable delays.
3. Ordering activities shall procure such requirements only if the need to do so is justified in writing and approved at the levels specified in paragraphs (f) and (h) of this subsection.
4. Except as provided in paragraph (e) of this subsection, when an order contains brand name specifications, the ordering activity shall post the following information along with the RFQ to eBuy (www.ebuy.gsa.gov):
1. For proposed orders exceeding $25,000, but not exceeding the SAT, the documentation required by paragraph (f) of this subsection.
2. For proposed orders exceeding the SAT, the justification required by paragraph (g) of this subsection.
5. The posting requirement of paragraph (d) of this subsection does not apply when—
1. Disclosure would compromise the national security (e.g., would result in disclosure of classified information) or create other security risks. The fact that access to classified matter may be necessary to submit a proposal or perform the contract does not, in itself, justify use of this exception;
2. The nature of the file (e.g., size, format) does not make it cost-effective or practicable for Contracting Officers to provide access through eBuy; or
3. The agency’s senior procurement executive makes a written determination that access through eBuy is not in the government’s interest.
6. Orders exceeding the micro-purchase threshold, but not exceeding the simplified acquisition threshold as defined in 2.101. For proposed orders exceeding the micropurchase threshold, but not exceeding the SAT, the ordering activity Contracting Officer shall document the circumstances when restricting consideration.
7. Orders exceeding the SAT.
   1. For proposed orders exceeding the SAT, the requiring activity shall assist the ordering activity Contracting Officer in the preparation of the justification. The justification shall cite that the acquisition is conducted under the authority of the MAS Program (see 8.401).
   2. As a minimum, each justification shall include the following information:
      1. Identification of the agency and the contracting activity, and specific identification of the document as a “Limited Source Justification.”
      2. Nature and/or description of the action being approved.
      3. A description of the supplies or services required to meet the agency’s needs (including the estimated value).
      4. Identification of the justification rationale (see 8.405-6(a) and (b)) and, if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service.
      5. A determination by the ordering activity Contracting Officer that the order represents the best value consistent with 8.404(d).
      6. A description of the market research conducted among Schedule holders and the results or a statement of the reason market research was not conducted.
      7. Any other facts supporting the justification.
      8. A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made.
      9. The ordering activity Contracting Officer’s certification that the justification is accurate and complete to the best of the Contracting Officer’s knowledge and belief.
      10. Evidence that any supporting data that is the responsibility of technical or requirements personnel (e.g., verifying the government’s minimum needs or requirements or other rationale for limited sources) and which form a basis for the justification have been certified as complete and accurate by the technical or requirements personnel.
8. Justification approvals.
   1. For proposed orders exceeding the SAT, but not exceeding $550,000, the ordering activity Contracting Officer’s certification that the justification is accurate and complete to the best of the ordering activity Contracting Officer’s knowledge and belief will serve as approval, unless a higher approval level is established in accordance with (IAW) agency procedures.
   2. For a proposed order exceeding $550,000, but not exceeding $11.5 million, the justification must be approved by the competition advocate of the activity placing the order, or by an official named in paragraph (h)(3) or (h)(4) of this subsection. This authority is not delegable.
   3. For a proposed order exceeding $11.5 million, but not exceeding $57 million (or, for DOD, NASA, and the Coast Guard, not exceeding $78.5 million), the justification must be approved by—
      1. The head of the procuring activity placing the order;
      2. A designee who—
         1. If a member of the armed forces, is a general or flag officer;
         2. If a civilian, is serving in a position in a grade above GS-15 under the General Schedule (or in a comparable or higher position under another Schedule); or
      3. An official named in paragraph (h)(4) of this subsection.
   4. For a proposed order exceeding $57 million (or, for DOD, NASA, and the Coast Guard, over $78.5 million), the justification must be approved by the senior procurement executive of the agency placing the order. This authority is not delegable, except in the case of the Under Secretary of Defense for Acquisition, Technology, and Logistics, acting as the senior procurement executive for the DOD.

8.405-7 Payment.

Agencies may make payments for oral or written orders by any authorized means, including the governmentwide commercial purchase card.