What is a no-bid contract, and how do you spot one?
Short answer
A no-bid contract is a federal award made without full and open competition, under one of seven exceptions in FAR 6.302, most often "only one responsible source." You spot one on USAspending.gov with two fields on the award page: Extent Competed (codes B, C, G, or NDO for orders) and Number of Offers Received (often 1).
Part of the article TSA ID scanners: Idemia won 2 bids, then a no-bid $17.7M warranty. This page answers one question from it in depth.
On this page · 7 sections
TL;DR: Competition is supposed to be the default: FAR Part 6 requires full and open competition unless one of 7 exceptions applies and a justification is signed. The quiet lock is usually not the first contract but the upkeep after it. TSA ran open contests for its ID scanners in 2014 (7 offers) and 2023 (5 offers), then paid the winner, Idemia, $21.8 million through two no-bid awards with one offer each, about 17% of the $130.3 million total.
The fair contest happens once a decade. The no-bid renewals happen every year. That is where money moves without anyone else getting a shot, and it all sits in public fields that almost nobody adds up.
Key numbers
| What | Number | Source |
|---|---|---|
| Exceptions to full and open competition | 7 (FAR 6.302-1 to 6.302-7) | FAR Part 6 |
| TSA CAT scanner awards to Idemia, 2014-2026 | 22 awards, $130.3M | USAspending.gov, pulled Oct 28 2026 |
| Offers on the 2014 CAT contract | 7 | USAspending.gov |
| Offers on the 2023 CAT-2 contract | 5 | TSA, Apr 25 2023 |
| No-bid warranty contract 70T04022C7672N004 | $17.65M, 1 offer, 11 mods | USAspending.gov |
| Both TSA no-bid awards, share of total | $21.8M, about 17% | Our math from USAspending.gov |
How a no-bid contract happens
The Competition in Contracting Act of 1984 made full and open competition the rule, and FAR Part 6 carries it out. An agency can skip it only by citing an exception in FAR 6.302: only one responsible source (6.302-1), unusual and compelling urgency (6.302-2), industrial mobilization or expert services (6.302-3), an international agreement (6.302-4), a statute that authorizes it (6.302-5), national security (6.302-6), or the public interest (6.302-7). Each needs a written justification and approval (J&A) under FAR 6.303, and FAR 6.305 generally requires it to be posted publicly.
The common path for equipment is 6.302-1. The machine runs the maker's firmware, so the maker is the "only responsible source" for warranties and engineering. That reasoning is often true, which is exactly why it compounds: every fair contest for hardware quietly buys a decade of sole-source upkeep.
How to spot one in 2 minutes
- Find the award with our USAspending search guide.
- On the award page, scroll to the competition details and read Extent Competed.
- Read Number of Offers Received. One offer on a "competed" award is worth a second look too.
- Open the transaction history. Option exercises (P000xx modifications) add money with no new contest. TSA's warranty deal grew from $2.85 million to $17.65 million that way.
Code E, "follow-on to competed action", is a gray zone: legally tied to an earlier contest, practically a renewal. Delivery orders under a big contract show CDO (competitive) or NDO (non-competitive) instead.
Common misconceptions
"No-bid means corrupt."
The recordNo. It means an exception was claimed and signed. Most are boring: replacement parts, warranties, licenses for software already installed. The story is the pattern and the price, not the label.
"If the first contract was competed, the vendor faces competition."
The recordOnly on that day. TSA's 2014 and 2023 contests were real; the 1,122 old scanners still under warranty in 2026 could only be serviced by their maker, at $2,142 each with no bidding.
"One offer means nobody else was interested."
The recordSometimes. More often the spec, the installed base or the timeline leaves one realistic bidder. The award record cannot tell you which; the J&A can.
Where this shows up next
The same pattern runs under surveillance software: ICE's Pen-Link orders for Webloc and Tangles grew from $2.28 million to $5.13 million in one year (full breakdown), and the defensive move for your own phone is turning off your advertising ID. For legal research, see how agencies pay for Westlaw and Lexis in our Harvey contracts piece, and the scanner story in full at TSA's ID scanner.
Your move: pick one agency you care about, filter its awards to Extent Competed C, and sort by amount. The biggest sole-source line is usually the most interesting one. If you want a company watched for you, Company Watch flags new awards and modifications as they land.
FAQ
What does no-bid contract mean?
The government awarded the work without full and open competition, using one of the exceptions in FAR 6.302, such as only one responsible source or unusual and compelling urgency. Often only one offer is received.
Are no-bid contracts legal?
Yes, when one of the seven FAR 6.302 exceptions applies and the agency signs a justification and approval (J&A), which FAR 6.305 generally requires it to post publicly.
How do I tell if a contract was competed on USAspending?
Open the award and read Extent Competed and Number of Offers Received. Codes B, C and G, or NDO on a delivery order, mean it was not competed. One offer is a strong signal.
What is a sole source contract?
A contract awarded to one company because the agency says only that source can meet the need, usually under FAR 6.302-1. It is the usual path for upkeep of equipment only the maker can service.
Why do no-bid contracts cost more?
Without a rival bid the seller prices against nothing. The lock often starts after a fair contest: once a vendor's hardware and software are installed, upkeep can only come from that vendor.
Sources
- FAR 6.302, Circumstances permitting other than full and open competition: https://www.acquisition.gov/far/6.302
- FAR Part 6, including 6.303 and 6.305 on justifications and posting: https://www.acquisition.gov/far/part-6
- USAspending.gov award 70T04022C7672N004 and TSA CAT awards (pulled Oct 28 2026): https://www.usaspending.gov/search
- FPDS data dictionary, Extent Competed: https://www.fpds.gov/wiki/index.php/FPDS_Data_Dictionary
- Tensorust, TSA ID scanner no-bid warranty (Oct 28 2026): https://tensorust.com/articles/tsa-id-scanner-idemia-no-bid-warranty/
Next question
Every number on this page links to its source and was checked on Oct 28, 2026. Spot an error or a newer figure? Email matt@tensorust.com and it gets fixed. Related: Search any company's federal contracts.
Read next
- Article · Oct 28, 2026TSA ID scanners: Idemia won 2 bids, then a no-bid $17.7M warranty
- Article · Oct 28, 2026ICE Webloc phone tracking: $5.1M in one day, and Marshals bought in
- Article · Oct 28, 2026Harvey at $15.6B Has $0 in Federal Contracts; Westlaw Took $171M
- Guide · Oct 28, 2026How to file an NHTSA vehicle safety complaint
- Explainer · Oct 27, 2026Why does Belgium own so much US debt?
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