10 USC 3204 permits covered acquisitions using other than competitive procedures when a specified statutory exception applies. It does not give agencies a general option to skip competition because a familiar vendor seems convenient. The applicable exception, justification, approval, and procedural requirements must be established. [1]
The seven statutory grounds
- Only one responsible source, or the limited sources contemplated by the provision.
- Unusual and compelling urgency.
- Industrial mobilization, essential capabilities, research, or specified expert services.
- An international agreement.
- Authorization or requirement in another statute.
- National security grounds involving disclosure requirements.
- A qualifying public-interest determination.
Each ground has its own conditions. For example, an urgent need does not automatically justify buying an unlimited quantity for an unlimited time. A requirement to protect classified information is also different from asserting that any defense purchase is exempt because it concerns national security.
Justification is part of the legal basis
The statute and FAR address written justifications, approval levels, notice and disclosure, and solicitation from as many sources as practicable under applicable exceptions. The governing details depend on the exception and acquisition. [2]
Officials should document market research, why the requirement fits the cited authority, the alternatives considered, and the scope of the noncompetitive action. A predecessor contract or contractor-specific technical preference is not itself a statutory exception.
What a reviewer should check
- The actual agency, procurement authority, and contract type.
- The cited exception and facts supporting each condition.
- Required approvals and whether the decision was properly documented.
- The quantity, period, and work covered by the justification.
- Any required public notice or available challenge procedure.
Competition rules and price reasonableness are separate. A valid exception does not automatically establish that the proposed price is reasonable or eliminate other acquisition duties.
For another defense purchasing tool, compare prototype other transactions under section 4022. the Secretary of Defense’s authority provides institutional context, but broad departmental powers do not replace the particular procurement authority. Contractors considering a protest should examine the actual notice and governing forum promptly because challenge deadlines are separate from contract-performance schedules.
Primary sources
Sources checked: October 31, 2026.