Sources Sought Notice (SSN)
A Sources Sought Notice (SSN) is a market research announcement issued by government agencies to determine whether capable vendors, particularly small businesses, can perform a planned contract. It helps agencies assess industry capability and decide whether to set aside procurements for small business participation.
What Is a Sources Sought Notice?
A Sources Sought Notice, often abbreviated as SSN, is a market research tool used by government agencies to identify capable vendors that can perform the requirements of a planned contract.
It is issued before a formal solicitation and helps agencies determine whether there are enough qualified small businesses to justify setting aside the procurement. Sources Sought Notices play a key role in promoting small business participation in federal contracting.
Key Characteristics
Issued during the market research phase of procurement
Not a solicitation or request for proposal
Used to assess industry capability and vendor availability
Often focused on identifying qualified small businesses
Helps determine small business set-aside eligibility
How It Works in Government Contracting
Where It Appears in the Procurement Lifecycle: A Sources Sought Notice is released before a formal solicitation such as a Request for Proposal (RFP) or Request for Quotation (RFQ).
Purpose: It allows the government to evaluate whether the "Rule of Two" can be met, meaning at least two responsible small businesses are capable of performing the work at fair market pricing.
Why It Matters: Sources Sought Notices help agencies determine acquisition strategy, promote competition, and support small business contracting goals.
Practical Application: For example, if a federal agency plans to procure cybersecurity services, it may issue a Sources Sought Notice requesting capability statements. If at least two qualified small businesses respond, the agency may designate the contract as a small business set-aside.
Regulatory Framework
Sources Sought Notices are guided by federal acquisition regulations and small business laws, including:
Federal Acquisition Regulation (FAR) Part 10, which requires agencies to conduct market research
Federal Acquisition Regulation (FAR) Part 19, which governs small business programs and set-aside requirements
The Small Business Act, which promotes small business participation in federal contracting
Why It Matters for Contractors
Business Opportunity: Responding to a Sources Sought Notice increases visibility with government buyers and positions vendors for future contract opportunities.
Strategic Positioning: Strong responses may influence whether a contract becomes a small business set-aside.
Competitive Advantage: Early engagement allows businesses to demonstrate capability and shape agency understanding of market capacity.
Risk Considerations: Failure to respond may result in missed opportunities or exclusion from small business set-aside consideration.
Common Misconceptions
A Sources Sought Notice is the same as a solicitation.
It is not a solicitation. It is used solely for market research and capability assessment.
Responding guarantees a contract award.
Responding does not guarantee an award but helps position vendors for future opportunities.
Only small businesses should respond.
Large businesses may also respond when appropriate, depending on the notice requirements.
Frequently Asked Questions
What should be included in a Sources Sought Notice response?
A capability statement outlining technical qualifications, past performance, certifications, and relevant experience.
Is pricing required in a Sources Sought Notice response?
Usually not. Agencies are primarily evaluating capability, not requesting formal pricing proposals.
Does every contract require a Sources Sought Notice?
No. Sources Sought Notices are commonly used for complex or significant requirements but are not mandatory for every procurement.
Where are Sources Sought Notices posted?
They are typically posted on SAM.gov under Contract Opportunities.
Related Government Contracting Topics
Small Business Set-Asides: Contracts reserved exclusively for qualifying small businesses under federal acquisition rules.
Request for Information: A market research tool used to gather industry input before issuing a solicitation.
Request for Proposal: A formal solicitation requesting detailed technical and pricing proposals from vendors.
Market Research in Federal Procurement: The structured process agencies use to identify capable vendors and available solutions before issuing solicitations.
Strategic Importance
Understanding and responding to Sources Sought Notices is essential for businesses seeking to compete in federal contracting.
Early engagement during the market research phase allows contractors to demonstrate capability, influence acquisition strategy, and improve their chances of competing successfully when formal solicitations are released.