Opportunities

How to respond to a sources sought notice (and why it is worth your time)

A sources sought notice is not a solicitation, so most small businesses skip it. That is a mistake. It is the moment a contracting officer decides who the future competition is for — and the cheapest bid you will ever write.

8 min read

Federal agencies must do market research before they buy. Part 10 of the Federal Acquisition Regulation (FAR) requires it, and one of the most common ways to do it is to post a notice on SAM.gov asking which companies can perform a given piece of work. The answers shape the acquisition strategy: whether there will be a set-aside, which NAICS code is used, how the work is packaged, and sometimes what the requirement says.

By the time the RFP is published, the most important decisions have already been made. The sources sought notice is where they are made.

What a sources sought notice is — and is not

It is a request for information about capability: who can do this work, at what scale, with which socioeconomic status. It is not a request for proposals. Notices usually say so explicitly: responses are not offers, the government will not pay for them, and there is no promise that a solicitation will follow.

Sources soughtRequest for information (RFI)Solicitation (RFP / RFQ)
PurposeIdentify capable sources, especially small businessesGather information to plan the requirementObtain offers to award a contract
What the agency wantsYour capability, past performance, size and statusIdeas, approaches, rough pricing, feedback on a draftA complete, compliant proposal
Binding?NoNoYes — an offer can be accepted
Typical length of response2–10 pages, often a page limitVariesAs long as the instructions require
In practice agencies sometimes blend the two pre-solicitation notices. Read what the notice actually asks for, not what it is called.

Why it decides set-asides: the rule of two

The reason small businesses should care most is the rule of two. A contracting officer sets an acquisition aside for small businesses when there is a reasonable expectation that offers will come from at least two responsible small businesses and that the award can be made at a fair market price. For decades this sat in FAR 19.502-2; the ongoing Revolutionary FAR Overhaul has moved it within Part 19 (the model deviation text places total set-asides in 19.104-1) while keeping its substance. Check the version your agency currently applies on acquisition.gov.

The evidence the contracting officer relies on is, very largely, the responses to market research. If you are a capable small business and you do not respond, you may be the reason there are only one — and the requirement goes to full and open competition, where you compete against companies fifty times your size. The same logic applies to the socioeconomic programs: 8(a), HUBZone, service-disabled veteran-owned (SDVOSB) and women-owned (WOSB) set-asides all need evidence of capable firms.

Finding sources sought notices on SAM.gov

  1. 1
    Open Contract Opportunities

    On SAM.gov, search Contract Opportunities and filter Notice Type to "Sources Sought" (and, separately, "Special Notice", where some RFIs live).

  2. 2
    Filter by your NAICS and PSC codes

    Use the codes in your SAM registration, plus adjacent ones agencies tend to use for your kind of work.

  3. 3
    Save the search and turn on alerts

    Response windows are short — often one to three weeks. A daily alert is the only reliable way not to miss them.

  4. 4
    Follow the agency, not just the notice

    Note the contracting office and the program. The same office will usually publish the solicitation.

If your SAM registration is not active yet, start there — our SAM.gov registration guide covers the UEI, CAGE code and the usual delays. Kodalyn can also run this watch for you every morning and score each notice against your profile; see tender monitoring.

A response template that works

Unless the notice prescribes a format — in which case follow it exactly — this structure answers what contracting officers look for, in the order they look for it:

SectionWhat to put in itLength
1. Cover blockNotice number and title, company legal name, UEI, CAGE code, address, named point of contact with direct phone and emailA few lines
2. Size and statusYour size under the NAICS code named in the notice, and each socioeconomic certification (8(a), HUBZone, SDVOSB, WOSB) with its statusA few lines
3. Capability, mapped to the requirementTake each task or question in the notice and answer it in turn, in the notice's own vocabularyThe core of the response
4. Relevant past performanceTwo to four contracts: customer, scope, value, period of performance, and one measurable resultHalf a page to a page
5. CapacityStaff, locations, clearances, equipment, and how you would scale for this scopeA paragraph
6. Contract vehiclesGSA schedule, GWACs, BPAs or IDIQs you hold that the agency could useOne line each
7. Answers to specific questionsIf the notice asks about the NAICS code, contract type or draft requirement, answer directly and brieflyAs needed
Attach your capability statement as well if allowed — but never instead of answering the questions.

Your capability statement is a useful attachment, but a generic one-pager on its own is the most common weak response. The contracting officer has to write a market research report that says which firms are capable of this requirement. Make that sentence easy to write.

What to include, what to leave out

  • Include evidence, not claims: contract numbers, dollar values, dates, measured outcomes.
  • Include a short, respectful note if the NAICS code or the packaging of the work looks wrong — this is the moment it can still change.
  • Include your intention to bid if a solicitation follows. It helps the rule-of-two judgement.
  • Leave out pricing unless it is explicitly requested. A number given now becomes an anchor.
  • Leave out marketing language, mission statements and capabilities unrelated to the scope.
  • Leave out proprietary information you would not want shared. If you must include it, mark it properly.

When you cannot do all of it

Many small businesses hold back because they can only perform part of the work. Respond anyway. Say which portions you can perform yourself, and whether you would propose with a teaming partner or as part of a joint venture. Under the limitations on subcontracting, a small-business prime must still perform a set share of the work itself, so be honest about what you would self-perform — the contracting officer will compare it with the rules.

After you send it

  1. Confirm receipt if the notice gives a contact, and note the date in your pipeline.
  2. Watch for the presolicitation or solicitation from the same office; it may come weeks or months later.
  3. If an industry day or one-on-one sessions are offered, take them: you now have context the contracting officer remembers.
  4. When the solicitation arrives, reuse your response — it is already mapped to the requirement and becomes the outline of your proposal. Our guide to how federal proposals are evaluated explains what changes at that stage.

A good response takes a few hours if your evidence is organized and a few days if it is not. Kodalyn keeps your past performance, certifications and documents in one place and drafts each response from them, tied to the questions in the notice — see AI drafting. For the bigger picture of entering the federal market, start with how to bid on federal contracts.

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Frequently asked questions

Is responding to a sources sought notice mandatory to bid later?+

No. A sources sought notice is market research, not a solicitation, and you can bid on a later solicitation without having responded. But responding helps determine whether the contract is set aside for small businesses, which can decide whether you can compete at all.

What is the difference between a sources sought notice and an RFI?+

A sources sought notice asks which companies are capable of performing the work and what their business size and status are. An RFI asks for information to help plan the requirement, such as approaches or rough pricing. Neither is binding, and agencies sometimes combine them.

Should I include pricing in a sources sought response?+

Only if the notice explicitly asks for it. Unrequested pricing adds nothing to the capability assessment and can become an anchor for the future solicitation.

How long should a sources sought response be?+

Follow any page limit in the notice. Without one, two to ten pages is typical: enough to answer each question with evidence, short enough to be read in full.

What is the rule of two?+

The rule that a contracting officer sets an acquisition aside for small businesses when there is a reasonable expectation of offers from at least two responsible small businesses at a fair market price. Responses to sources sought notices are a key part of the evidence.