FAR 6.302-3—Industrial mobilization; engineering, developmental, or research capability; or expert services.
Plain-English Summary
FAR 6.302-3 implements one of the statutory exceptions to full and open competition: awards made to a particular source or sources when needed for industrial mobilization, to preserve or develop engineering, developmental, or research capability, or to obtain expert or neutral services for litigation or dispute resolution. This section explains the legal authority, the three major application areas, and the specific situations in which each may be used, including maintaining vital suppliers for national emergency readiness, training or sustaining critical suppliers and balanced sources of supply, preserving domestic production capability, avoiding breaks in production, dividing production among multiple contractors, supporting essential scientific or engineering capability at educational institutions, nonprofits, or FFRDCs, and obtaining experts or neutrals for litigation, claims, and alternative dispute resolution. It also makes clear that this authority is not a blanket waiver of competition: the contracting officer must still prepare the written justification and obtain the approvals required by FAR 6.303 and 6.304. In practice, this section is used when the Government has a mission-based reason to limit competition, but it must be applied narrowly and documented carefully because it directly affects market access, source selection, and the integrity of the competition process.
Key Rules
Statutory exception authority
This section relies on 10 U.S.C. 3204(a)(3) or 41 U.S.C. 3304(a)(3), which permit other than full and open competition when award to a particular source is necessary for the listed purposes. The authority is limited to the specific circumstances described in the regulation and does not authorize noncompetitive awards for convenience or preference.
Industrial mobilization purpose
Under paragraph (a)(2)(i), the Government may limit competition to maintain a facility, producer, manufacturer, or supplier for national emergency readiness or industrial mobilization. The focus is on preserving or creating a resilient industrial base, not simply supporting a favored contractor.
Engineering and research capability
Under paragraph (a)(2)(ii), the Government may award to a particular source to establish or maintain essential engineering, developmental, or research capability. This includes capability at educational or other nonprofit institutions and federally funded research and development centers when that capability is needed for the Government’s mission.
Expert and neutral services
Under paragraph (a)(2)(iii), the Government may acquire expert services for current or anticipated litigation or disputes, including reasonably foreseeable disputes, and may also obtain neutral persons such as mediators or arbitrators for alternative dispute resolution. The expert need not be expected to testify, and the services may include analysis, presentation, defense, fact-finding, or other ADR support.
Specific application examples
Paragraph (b) gives examples of when the authority may be appropriate, such as keeping vital suppliers in business, training a selected supplier, preventing loss of skills, maintaining active R&D work, balancing sources of supply, limiting competition to domestic production, continuing production without a break, dividing production among multiple contractors, or obtaining theoretical, exploratory, or developmental capabilities. These examples guide judgment but do not expand the authority beyond its statutory purpose.
Partial competition still required when possible
When only part of a requirement is needed to meet industrial mobilization objectives, the portion not needed for that purpose should be acquired using full and open competition as appropriate. The regulation therefore supports tailoring the noncompetitive portion as narrowly as possible.
Written justification and approval required
All contracts awarded under this authority must be supported by the written justifications and approvals required by FAR 6.303 and 6.304. The exception cannot be used without proper documentation, approval level, and compliance with the justification process.
Responsibilities
Contracting Officer
Determine whether the requirement fits one of the three authorized purposes, ensure the use of the authority is necessary and narrowly tailored, prepare the required written justification, and obtain the approvals required by FAR 6.303 and 6.304 before award.
Requiring Activity / Program Office
Provide the mission rationale showing why a particular source is needed, identify the industrial mobilization, research capability, or litigation-support need, and supply facts supporting the justification, including any need to preserve domestic capability, avoid a production break, or maintain essential expertise.
Agency Approving Official
Review and approve the justification at the level required by FAR 6.304, ensuring the exception is properly supported, the rationale is credible, and the proposed limitation on competition is justified.
Contractor or Potential Source
If selected under this authority, perform the required mobilization, research, developmental, engineering, or expert/neutral services as described in the contract; if not selected, understand that competition may be limited for mission-based reasons rather than due to performance deficiency.
Legal Counsel / Policy Staff
Assist in confirming that the contemplated use of the authority fits the statutory and regulatory criteria, especially for litigation-related expert services and alternative dispute resolution support, and help ensure the justification is legally sufficient.
Practical Implications
This is a narrow exception, so the biggest day-to-day issue is documentation: if the justification does not clearly connect the award to one of the three authorized purposes, the procurement is vulnerable to protest or audit findings.
Contracting officers should avoid overusing the authority for general industrial support or convenience; the record must show a real need to preserve mobilization capacity, essential R&D capability, or litigation/dispute expertise.
For industrial mobilization actions, agencies should consider whether only part of the requirement needs to be limited and whether the remainder can be competed, because the regulation favors limiting the noncompetitive portion to what is necessary.
For expert services, the authority is broader than just testifying experts and can cover foreseeable disputes and ADR support, but the services must still be tied to a specific litigation or dispute-related need.
Because the section cross-references FAR 6.303 and 6.304, failure to complete the written justification and approval process is a common compliance pitfall even when the underlying rationale is valid.
Official Regulatory Text
(a) Authority. (1) Citations: 10 U.S.C. 3204(a)(3) or 41 U.S.C. 3304(a)(3) . (2) Full and open competition need not be provided for when it is necessary to award the contract to a particular source or sources in order- (i) To maintain a facility, producer, manufacturer, or other supplier available for furnishing supplies or services in case of a national emergency or to achieve industrial mobilization; (ii) To establish or maintain 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; or (iii) To acquire the services of an expert or neutral person for any current or anticipated litigation or dispute. (b) Application. (1) Use of the authority in paragraph (a)(2)(i) of this section may be appropriate when it is necessary to- (i) Keep vital facilities or suppliers in business or make them available in the event of a national emergency; (ii) Train a selected supplier in the furnishing of critical supplies or services, prevent the loss of a supplier's ability and employees' skills, or maintain active engineering, research, or development work; (iii) Maintain properly balanced sources of supply for meeting the requirements of acquisition programs in the interest of industrial mobilization (when the quantity required is substantially larger than the quantity that must be awarded in order to meet the objectives of this authority, that portion not required to meet such objectives will be acquired by providing for full and open competition, as appropriate, under this part); (iv) Create or maintain the required domestic capability for production of critical supplies by limiting competition to items manufactured in- (A) The United States or its outlying areas; or (B) The United States, its outlying areas, or Canada. (v) Continue in production, contractors that are manufacturing critical items, where there would otherwise be a break in production; or (vi) Divide current production requirements among two or more contractors to provide for an adequate industrial mobilization base. (2) Use of the authority in paragraph (a)(2)(ii) of this section may be appropriate when it is necessary to- (i) Establish or maintain an essential capability for theoretical analyses, exploratory studies, or experiments in any field of science or technology; (ii) Establish or maintain an essential capability for engineering or developmental work calling for the practical application of investigative findings and theories of a scientific or technical nature; or (iii) Contract for supplies or services as are necessary incident to paragraph (b)(2)(i) or (ii) of this section. (3) Use of the authority in paragraph (a)(2)(iii) of this subsection may be appropriate when it is necessary to acquire the services of either- (i) An expert to use, in any litigation or dispute (including any reasonably foreseeable litigation or dispute) involving the Government in any trial, hearing, or proceeding before any court, administrative tribunal, or agency, whether or not the expert is expected to testify. Examples of such services include, but are not limited to: (A) Assisting the Government in the analysis, presentation, or defense of any claim or request for adjustment to contract terms and conditions, whether asserted by a contractor or the Government, which is in litigation or dispute, or is anticipated to result in dispute or litigation before any court, administrative tribunal, or agency; or (B) Participating in any part of an alternative dispute resolution process, including but not limited to evaluators, fact finders, or witnesses, regardless of whether the expert is expected to testify; or (ii) A neutral person, e.g., mediators or arbitrators, to facilitate the resolution of issues in an alternative dispute resolution process. (c) Limitations . Contracts awarded using this authority shall be supported by the written justifications and approvals described in 6.303 and 6.304 .