DFARS Part 206: Competition Requirements

In plain English

DFARS Part 206 implements and supplements FAR Part 6 on competition requirements for DoD acquisitions. It covers exceptions, competitive procedures, and the justification and approval process for other than full and open competition. Contractors need to understand these rules because they affect how contracts are awarded and what documentation is required.

Key rules

• Follow-on production contracts for prototype projects developed under other transactions authority are exempt from competition requirements if the contracting officer receives sufficient documentation that the other transaction agreement included provisions for a follow-on production contract and applicable thresholds were met. (206.001-70)
• Competitive selection of science and technology proposals from a broad agency announcement with peer or scientific review is a competitive procedure. (206.102)
• Competitive selection of proposals from a commercial solutions opening based on expert peer review is a competitive procedure. (206.102-70)
• Agencies may exclude a particular source from a contract action to establish or maintain alternative sources, and the determination and findings must identify the excluded source. (206.202)
• For sole-source 8(a) contracts over $100 million, the contracting officer must justify the use of a sole-source contract in writing, obtain approval, and make the justification public after award. (206.303-1)
• Justifications for other than full and open competition must include the information required by FAR 6.303-2, with additional content for sole-source 8(a) contracts over $100 million. (206.303-2)
• The justification and approval process is not required for acquisitions in support of operations in Afghanistan using a procedure specified in 225.7703-1(a). (206.303-70)
• For defense agencies, the written determination to use the public interest authority must be made by the Secretary of Defense. (206.302-7)

Who does what

In practice

• If you are bidding on a DoD contract, be aware that certain awards may be made without full and open competition, such as follow-on production contracts from other transactions or sole-source 8(a) contracts over $100 million.
• For sole-source 8(a) contracts over $100 million, the justification and related information will be made public after award, so you can review the rationale.
• If you are an 8(a) participant, a sole-source contract over $100 million requires a written justification and approval, which may affect the timeline and documentation.

Common pitfalls

• Do not assume that all DoD contracts are competitive; exceptions exist for prototype follow-on production and other situations, so check the specific authority cited.
• For sole-source 8(a) contracts over $100 million, do not overlook the requirement for a written justification and public posting after award.
• When using the authority to establish or maintain alternative sources, ensure the determination and findings identify the source to be excluded from the contract action.

Written by AI from this part's codified text (2026-10-04); cited sections are checked against the part. A guide, not legal advice: the regulation text, the solicitation and your contract rule.