A no-bid contract — formally called a sole-source contract — is a government contract awarded to a single vendor without the competitive bidding process that federal procurement law generally requires under the Federal Acquisition Regulation (FAR). Sole-source awards are permitted in limited circumstances: when only one vendor can perform the work, when there's a genuine emergency, when competition would compromise national security, or for certain small purchases. Critics argue no-bid contracts are frequently awarded outside these legitimate exceptions, channeling taxpayer money to politically connected firms without price competition or independent performance evaluation. High-profile examples include Halliburton's Iraq War logistics contracts, FEMA contracts after Hurricane Katrina, and DHS's $220 million communications contract in 2026.