What is a no-bid contract?

The short version

A no-bid contract, also called a sole-source contract, is a government contract awarded without full and open competition. The agency picks a company directly instead of inviting bids.

The rule and its exceptions

The Competition in Contracting Act of 1984 requires federal agencies to use full and open competition by default. The Federal Acquisition Regulation, in Part 6, lists the exceptions. They include cases where only one company can do the work, unusual and compelling urgency, national security, and contracts authorized by another statute.

Agencies that use an exception generally must write a justification and have it approved, and many justifications are published.

Why it matters

Competition helps the government compare prices and qualifications, and it makes it harder to steer money to favored firms. Heavy use of the urgency exception, or awards to companies with little contracting history, are among the patterns that auditors and inspectors general examine.

How Swamp Watch uses this

We report the share of spending that went through exceptions, who received the contracts, and any links between those firms and officials or donors, citing contract records and audits.