FAR 6.302-5—Authorized or required by statute.
Plain-English Summary
FAR 6.302-5 explains one of the statutory exceptions to full and open competition: when a statute itself authorizes or requires the Government to buy from a specified source or through another agency, or when the agency needs a brand name commercial product for authorized resale. In practice, this section is the bridge between competition policy and other laws that direct procurement outcomes, such as purchases from Federal Prison Industries (UNICOR), the AbilityOne program, Government Printing and Binding, and certain sole-source awards under the 8(a), HUBZone, Veterans, and WOSB programs. It also addresses an important limitation: the authority cannot be used simply because a law names a non-Federal entity unless the statute meets specific criteria, with narrow exceptions for continuation work and certain National Academy of Sciences contracts. The section further ties these procurements to the written justification and approval requirements in FAR 6.303 and 6.304, while carving out specific exceptions where J&A is not required. For contracting officers and contractors, the practical significance is that a procurement may be exempt from full and open competition only when the legal basis is precise, documented, and used within the limits of the underlying statute.
Key Rules
Statutory source exceptions
Full and open competition is not required when a statute expressly authorizes or requires the acquisition to be made through another agency or from a specified source. This is a narrow authority and depends on the statute itself, not just agency preference.
Brand-name resale purchases
The authority also covers purchases of brand name commercial products for authorized resale. This applies only to resale through commissaries or similar facilities, and only for products desired or preferred by customers of the selling activity.
Examples of covered statutes
The rule specifically points to statutes and programs such as UNICOR, AbilityOne, Government Printing and Binding, and sole-source awards under the 8(a), HUBZone, Veterans, and WOSB programs. These examples show the kinds of statutory mandates or authorizations that can justify use of this exception.
Limits on non-Federal entities
The authority cannot be used when a law requires award to a specified non-Federal entity unless the statute specifically identifies the entity, cites the relevant competition statute, and states that award must be made contrary to merit-based selection procedures. This prevents overbroad use of the exception.
Continuation and NAS exceptions
The limitation on specified non-Federal entities does not apply when the contract continues work performed by that entity under a prior contract, or when the contract requires the National Academy of Sciences to perform scientific or technical studies and report to Congress or an agency.
Justification and approval requirements
Contracts using this authority generally require the written justifications and approvals in FAR 6.303 and 6.304. Exceptions apply for brand-name resale purchases, certain specified-source procurements where the statute expressly requires the source, and smaller 8(a) awards at or below $30 million.
Special rule for brand-name resale
The brand-name commercial product authority may be used only for purchases intended for resale through commissaries or similar facilities. It is not a general authority for brand-name buying outside the resale context.
Responsibilities
Contracting Officer
Determine whether a statute expressly authorizes or requires the acquisition from a specified source or through another agency, or whether the brand-name resale condition applies. Prepare and obtain the required written justification and approval when applicable, and ensure any use of this authority fits within the stated limitations and exceptions.
Agency
Follow statutory procurement mandates that direct purchases to specific sources or entities, and ensure internal procedures align with the FAR justification and approval requirements. The agency must not use this authority to bypass competition unless the legal conditions are actually met.
Contractor
Understand that award under this section may be driven by statute rather than competition, and be prepared for source restrictions or program-specific eligibility rules. Contractors should also recognize that some awards may still require formal justification and approval documentation even when competition is not used.
Program Office / Requiring Activity
Provide accurate facts about the statutory basis, the need for a specified source, and whether the requirement is a continuation of prior work or involves authorized resale. Support the contracting officer with the information needed to justify the acquisition approach.
Practical Implications
This section is often used for mandatory-source or statutorily directed buys, so the first question is always whether a statute truly compels or authorizes the source selection. If the statute is only permissive, the contracting officer may still need a J&A and must be careful not to treat the authority as automatic.
A common pitfall is confusing a program preference or eligibility rule with a statute that actually authorizes a noncompetitive award. The legal basis must be specific, and for some non-Federal entities the statute must meet all of the detailed conditions in paragraph (c)(1).
Another frequent issue is forgetting the written justification and approval requirement. Even when competition is not required, the file usually still needs the proper FAR 6.303/6.304 documentation unless a listed exception applies.
The brand-name resale authority is narrow and should not be used as a general justification for brand-name purchases. It is limited to authorized resale through commissaries or similar facilities.
For 8(a) sole-source awards, the dollar threshold matters: awards over $30 million require special justification and approval procedures, while awards at or below that threshold are treated differently under this section.
Official Regulatory Text
(a) Authority. (1) Citations: 10 U.S.C. 3204(a)(5) or 41 U.S.C. 3304(a)(5) . (2) Full and open competition need not be provided for when– (i) A statute expressly authorizes or requires that the acquisition be made through another agency or from a specified source; or (ii) The agency’s need is for a brand name commercial product for authorized resale. (b) Application . This authority may be used when statutes, such as the following, expressly authorize or require that acquisition be made from a specified source or through another agency: (1) Federal Prison Industries (UNICOR) 18 U.S.C. 4124 (see subpart 8.6 ). (2) Qualified nonprofit agencies for the blind or other severely disabled 41 U.S.C. chapter 85 , Committee for Purchase From People Who Are Blind or Severely Disabled (see subpart 8.7 ). (3) Government Printing and Binding 44 U.S.C. 501 - 504 , 1121 (see subpart 8.8 ). (4) Sole source awards under the 8(a) Program ( 15 U.S.C. 637 ), but see 6.303 for requirements for justification and approval of sole-source 8(a) awards over $30 million. (See subpart 19.8 ). (5) Sole source awards under the HUBZone Act of 1997- 15 U.S.C. 657a (see 19.1306 ). (6) Sole source awards under the Veterans Benefits Act of 2003 ( 15 U.S.C. 657f ). (7) Sole source awards under the WOSB Program– 15 U.S.C. 637(m) (see 19.1506 ). (c) Limitations. (1) This authority shall not be used when a provision of law requires an agency to award a new contract to a specified non-Federal Government entity unless the provision of law specifically— (i) Identifies the entity involved; (ii) Refers to 10 U.S.C. 3201(e) for armed services acquisitions or 41 U.S.C. 3105 for civilian agency acquisitions; and (iii) States that award to that entity shall be made in contravention of the merit-based selection procedures in 10 U.S.C. 2304(k) or 41 U.S.C. 3105 , as appropriate. However, this limitation does not apply– (A) When the work provided for in the contract is a continuation of the work performed by the specified entity under a preceding contract; or (B) To any contract requiring the National Academy of Sciences to investigate, examine, or experiment upon any subject of science or art of significance to an executive agency and to report on those matters to the Congress or any agency of the Federal Government. (2) Contracts awarded using this authority shall be supported by the written justifications and approvals described in 6.303 and 6.304 , except for– (i) Contracts awarded under (a)(2)(ii) or (b)(2) of this section; (ii) Contracts awarded under (a)(2)(i) of this section when the statute expressly requires that the procurement be made from a specified source. (Justification and approval requirements apply when the statute authorizes, but does not require, that the procurement be made from a specified source); or (iii) Contracts less than or equal to $30 million awarded under (b)(4) of this section. (3) The authority in (a)(2)(ii) of this section may be used only for purchases of brand name commercial products for resale through commissaries or other similar facilities. Ordinarily, these purchases will involve articles desired or preferred by customers of the selling activities (but see 6.301 (d)).