This can certainly be done, Derrick, though there's a slight problem with the context here. As you've written this, the where clause is trying to match the name of your dictionary term to $SourceSystem, which doesn't quite work out since $SourceSystem is a custom field on the use case. The contexts aren't the same, so there's a disconnect and the comparison never matches up.
In order to use a value from a different context ($SourceSystem on your use case) in the where clause for definitions, we've got to set up a variable. Doing this within the context of your use case, you can then carry that over to the new context and use it in the where clause.
Details are in section 5.10 of the custom reports guide, but something like this should work:
$repeatUseCases
$set $$DictName $SourceSystem
$repeatDictionarySortName where Name = $$DictName