(a) Agencies may exclude a particular source from a contract action in order to establish or maintain an alternative source or sources for the supplies or services being acquired if the agency head determines that to do so would -
(1) Increase or maintain competition and likely result in reduced overall costs for the acquisition, or for any anticipated acquisition;
(2) Be in the interest of national defense in having a facility (or a producer, manufacturer, or other supplier) available for furnishing the supplies or services in case of a national emergency or industrial mobilization;
(3) Be in the interest of national defense in establishing or maintaining an essential engineering, research, or development capability to be provided by an educational or other nonprofit institution or a federally funded research and development center;
(4) Ensure the continuous availability of a reliable source of supplies or services;
(5) Satisfy projected needs based on a history of high demand; or
(6) Satisfy a critical need for medical, safety, or emergency supplies.
(b)
(1) Every proposed contract action under the authority of paragraph (a) of this section shall be supported by a determination and findings (D&F) (see Subpart 1.7) signed by the head of the agency or designee. This D&F shall not be made on a class basis.
(2) Technical and requirements personnel are responsible for providing all necessary data to support their recommendation to exclude a particular source.
(3) When the authority in subparagraph (a)(1) of this section is cited, the findings shall include a description of the estimated reduction in overall costs and how the estimate was derived.
