Beginner Track • Topic 19A

Competition Statutes for Commercial Buys

A first-day guide to U.S. Code citations. What they are, why contracting officers cite them, and how to tell the difference between 1901, 1903, 3304, and 3204.

Start Here

Before the numbers: what is a U.S.C. citation?

U.S.C. means United States Code. It is the organized collection of laws passed by Congress. The FAR tells contracting officers how to buy things. The U.S. Code is where the legal permission comes from.

1 The Big Idea

When the Government limits competition, the file needs to answer a simple question: what gives us permission to do that? The answer is usually a statute. That is why you see citations like 41 U.S.C. 1901 or 41 U.S.C. 3304.

The statute citation is not the form. It is not the template. It is the legal authority behind the action.

Plain English: The FAR is the instruction book. The U.S. Code is the law Congress passed. When a justification asks for "statutory authority," it is asking which U.S. Code section gives you permission.
Quick SAT note: SAT means simplified acquisition threshold. It is the dollar line that separates smaller simplified buys from bigger buys with more formal documentation. Do not memorize a dollar amount from this lesson forever; check the current threshold and your agency policy when you are working a real file.

2 How To Read The Citation

A citation like 41 U.S.C. 1901 has three parts:

41

The title number. Title 41 covers public contracts for most civilian Government contracting rules.

U.S.C.

United States Code. That means you are looking at a statute, not a FAR paragraph.

1901

The section number. This is the specific law you are pointing to.

So 41 U.S.C. 1901 means: Title 41, United States Code, section 1901.


3 Four Numbers, Four Jobs

Part 12

41 U.S.C. 1901

The normal commercial simplified procedures authority. Use this for commercial buys above the SAT through $9M when you are in FAR 12.201-1.

Part 12

41 U.S.C. 1903

The emergency boost. It lets certain qualifying commercial actions use the simplified lane above $9M through $15M.

Civilian Part 6

41 U.S.C. 3304

The civilian Part 6 authority. Civilian agencies use this when they restrict competition outside the simplified procedures lane.

DoD/NASA/CG Part 6

10 U.S.C. 3204

The DoD, NASA, and Coast Guard Part 6 authority. Same basic job as 3304, but for these agencies.

Memory hook: 1901 and 1903 are Part 12 simplified procedures statutes. 3304 and 3204 are Part 6 competition statutes.

4 The First Question To Ask

Before you pick a citation, do not start with the statute. Start with the facts.

Is it commercial?

If yes, you may be in FAR Part 12. If no, you are probably not using the commercial simplified procedures lane.

Is it at or below the SAT?

If yes, do not jump to FAR Part 6. Document the one-source decision in the file.

If it is commercial and above the SAT, are you using FAR 12.201-1?

If yes and the value is through $9M, cite 41 U.S.C. 1901.

If it is commercial above $9M, does the special emergency rule apply?

If yes and the value is through $15M, cite 41 U.S.C. 1901 and 1903.

If you are outside the commercial simplified lane, are you restricting competition?

If yes, now you are probably in FAR Part 6. Civilian agencies cite 41 U.S.C. 3304. DoD, NASA, and the Coast Guard cite 10 U.S.C. 3204.


5 Why Part 12 Mentions Part 6

The checklist

FAR 12.102 tells you to prepare the written justification and get approval as described in FAR 6.104 for commercial actions above the SAT.

Think of FAR 6.104 as the checklist for what the write-up must include and who must approve it.

The authority

The authority is the statute you cite. For a commercial simplified-procedures action through $9M, that is still 41 U.S.C. 1901.

So yes, you may use the FAR 6.104 checklist. No, that does not automatically make the authority 3304 or 3204.

This is the trap. The document may look like a Part 6 J&A, but if you are in the FAR 12.201-1 simplified procedures lane, the authority citation is Part 12's statute.

6 What Do I Cite?

Situation Procedure Authority to Cite Why
Commercial, at or below the SAT FAR 12.102(a) No Part 6 citation Document why only one source is available. Keep it in the file.
Commercial, above the SAT through $9M FAR 12.102(b) and 12.201-1 41 U.S.C. 1901 This is the normal commercial simplified procedures lane.
Commercial, qualifying emergency-type action above $9M through $15M FAR 12.102(b), 12.201-1, and 12.001(c) 41 U.S.C. 1901 and 1903 1903 is the special emergency authority that expands the threshold.
Commercial, above $9M and not in the special $15M lane FAR 12.201-2 with Part 14 or Part 15, as appropriate One of the authorities in FAR 6.103 You are outside simplified procedures, so Part 6 authority applies if competition is restricted.
Non-commercial, above the SAT, civilian agency FAR 6.103-1 41 U.S.C. 3304(a)(1) 3304 is the civilian Part 6 statute.
Non-commercial, above the SAT, DoD/NASA/Coast Guard FAR 6.103-1 10 U.S.C. 3204(a)(1) 3204 is the DoD/NASA/Coast Guard Part 6 statute.

7 Side-by-Side Examples

Requirement Value Correct Citation File Logic
Commercial software license, only one compatible source $475K 41 U.S.C. 1901 Above SAT, below $9M, using FAR 12.201-1 simplified procedures.
Commercial logistics support for a declared contingency operation $12M 41 U.S.C. 1901 and 1903 Above $9M but within the $15M special lane because it supports a qualifying 12.001(c) circumstance.
Commercial services, sole source, not a 12.001(c) action $12M 41 U.S.C. 3304 or 10 U.S.C. 3204 Outside FAR 12.201-1 simplified procedures, so use FAR 12.201-2 and the applicable Part 6 authority.
Non-commercial specialized engineering support, only one responsible source $800K 41 U.S.C. 3304 or 10 U.S.C. 3204 Not commercial simplified procedures. Part 6 applies if restricting competition.

8 Common Mistakes

Mistake 1: Citing Part 6 just because the buy is sole source.

Sole source does not automatically mean Part 6. First ask whether you are under the SAT or in the FAR 12.201-1 commercial simplified procedures lane.

Mistake 2: Citing 1903 on every commercial buy.

1903 is for the special emergency-type expansion above $9M through $15M. It is not the normal under-$9M authority.

Mistake 3: Confusing the checklist with the authority.

FAR 6.104 may tell you what to put in the write-up. That does not always mean the statute is 3304 or 3204.


9 Look It Up

FAR Overhaul Part 12

See 12.001, 12.102, 12.201-1, and Table 12-1 for the current commercial procedures framework.

Open source

FAR Overhaul Part 6

See 6.001 for applicability and 6.103 for the current Part 6 competition authorities.

Open source

41 U.S.C. 1901

Simplified acquisition procedures, including the commercial-products and commercial-services lane.

Open source

41 U.S.C. 1903

Special emergency procurement authority and the threshold expansion for qualifying actions.

Open source

41 U.S.C. 3304

Civilian agency authority for using procedures other than full and open competition.

Open source

10 U.S.C. 3204

DoD, NASA, and Coast Guard authority for using procedures other than competitive procedures.

Open source