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Set-aside

Also called: small business set-aside, set aside contract, restricted competition, total small business set-aside

A set-aside is a solicitation reserved for a class of business, most often small businesses in general or a socioeconomic program such as 8(a), HUBZone, WOSB or SDVOSB, so only eligible firms may compete.

Federal set-asides come from FAR Part 19. FAR 19.502-2 requires a total small business set-aside when the contracting officer expects offers from at least two capable small businesses at fair market prices (the rule of two), and FAR 19.8, 19.13, 19.14 and 19.15 cover the program-specific set-asides. Eligibility is judged against the NAICS and size standard on the solicitation and the certifications in your SAM record. State and local set-asides are governed by state code and are usually preference or goal programs rather than reserved competitions.

What to check: the set-aside line on the notice, your size under that NAICS, the limitations on subcontracting that apply to a set-aside award (FAR 52.219-14), and whether a partial set-aside or a reserve applies.

What it is not: a guarantee of award, and not a sole source. A set-aside narrows the field; you still compete.

See also: Size standard, 8(a) Business Development Program, HUBZone, Limitations on subcontracting

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