This guide explains DFARS Part 206: Competition Requirements. First, read the relevant coverage with the FAR, applicable supplements and deviations, and the actual solicitation or contract.

A strong customer relationship does not establish a sole-source authority. Next, identify the competition framework and the required supporting record before building a sales plan around an exception.

Watch the DFARS Part 206 lesson

DFARS Part 206: Identify the applicable competition framework

Part 206 supplements FAR Part 6 and includes particular applicability provisions. Section 206.001-70 addresses a conditional exception for follow-on production contracts associated with prototype other transactions and requires sufficient supporting documentation. A successful prototype does not, by itself, establish that every follow-on action qualifies.

Check defense-specific justification requirements

Section 206.302-1 includes defense-specific requirements concerning brand-name-or-equal descriptions and proprietary specifications or standards. However, do not assume that adding the words or equal settles the justification question. Examine the applicable text, acquisition facts, and required approval rather than importing a general FAR-only assumption.

Keep the Government decision separate from contractor evidence

Part 206 addresses justifications, content, approvals, and availability. The contractor can provide accurate technical and business facts, but the Government’s authority and approval process remain distinct. A customer preference or the company’s assertion of uniqueness is not a substitute for the required decision record.

A hypothetical example

For example, consider a fictional defense technology company that has completed a prototype project. Its leadership expects a production award and begins planning additional hiring. A program contact is enthusiastic about the demonstrated capability.

Before treating the follow-on as committed work, the company’s contracts team examines the actual agreement and acquisition information. It identifies the documented pathway, any conditions that remain unresolved, and the Government offices responsible for the next action. Next, the team separates technical success from a contracting conclusion.

The business prepares factual evidence about performance, capacity, and the proposed work while keeping uncertainty visible in its internal forecast. However, this example does not determine eligibility for an exception or promise an award. It shows why a supportable business decision needs more than optimism about the customer’s intent.

Avoid the shortcut

However, do not describe every requirement that favors your design as proof of sole-source entitlement. Then, explain the facts accurately and respond through authorized channels. Also, keep proprietary technical assertions supported and clearly identified. An acquisition strategy can depend on legal authority, documentation, review, and approval that the contractor does not control.

Try this exercise

Take a fictional pursuit your team calls sole source and ask what specific authority that label is meant to describe. In addition, identify the facts the company can support and the decisions reserved to the Government. Next, record which assumptions must be resolved before making a hiring, pricing, or capacity commitment.

This worksheet is a GovSuccess preparation practice, not a prescribed Government form or a determination of compliance.

1. Proposed acquisition or follow-on action
2. Applicable competition framework
3. Claimed exception and conditions
4. Prototype or prior-agreement record
5. Technical and business evidence
6. Government decision and approval route
7. Open assumptions and forecast effects
8. Written outcome and next step

Official source and applicability

DFARS Part 206 — official text. The source page displays DFARS Change 5/7/2026, effective May 7, 2026. Then, check later changes and the requirements applicable to your acquisition. Also, route material interpretation questions for qualified review.

Build your readiness baseline

Explore GovAssessment for a structured business-readiness baseline based on your answers. However, it does not certify compliance, approve a contract action, or guarantee an award.

General education, not legal advice. Browse the DFARS series.