Small Business Programs

What is a Small Business Set-Aside Opportunity?

Find the Federal Acquisition Regulation (FAR)  - FAR Subpart 19.5 :

As part of government-wide efforts to develop new businesses, certain solicitations are set aside for small business. A small business set-aside reserves a buy exclusively for participation by small business concerns. A small business set-aside may be open to all small businesses. A small business set-aside of a single acquisition or a class of acquisitions may be total or partial.

For more information on small business set-asides, go to FAR 19.501  – General, FAR 19.502  – Setting-Aside Acquisitions, and FAR 19.503  – Setting-Aside a Class of Acquisitions for Small Business. 

What is a Small Disadvantaged Business Set-Aside?

To qualify as a Small Disadvantaged Business (SDB) , businesses must meet the following eligibility criteria:

• Be a small business  according to the SBA’s size standards;
• Be at least 51% or more owned  and controlled  by one or more disadvantaged persons;
• The disadvantaged person or persons must be socially disadvantaged  and economically disadvantaged  (Have a personal net worth of $850 thousand or less, adjusted gross income of $400 thousand or less, and assets totaling $6.5 million or less)

13 CFR 124.103(a)  establishes that socially disadvantaged individuals are those who have been subjected to racial or ethnic prejudice or cultural bias within American society because of their identities as members of groups and without regard to their individual qualities. The social disadvantage must stem from circumstances beyond their control.

What is a HUBZONE Set-Aside?

A Historically Underutilized Business Zone (HUBZone) set-aside is the reserving of an acquisition exclusively for participation by HUBZone small business concerns. For a procurement to be totally set-aside for HUBZone small business concerns, a contracting officer must have a reasonable expectation that offers will be received from two or more HUBZone small business concerns and awards will be made at a fair market price. 

For more information on HUBZone set-asides, go to FAR 19.1305  .

What is an 8(a) Program Set-Aside?

Section 8(a) of the Small Business Act (15 U.S.C. 637(a)) established a program authorizing the Small Business Administration to enter into all types of contracts with other agencies and award subcontracts for performing those contracts to firms eligible for program participation. This program is the “8(a) Business Development Program ,” often referred to as the “8(a) program.”

To help provide a level playing field for small businesses owned by socially and economically disadvantaged people or entities, the government limits competition for certain contracts to businesses that participate in the 8(a) program. The federal government fully defines who qualifies for the 8(a) program — including what counts as being economically and socially disadvantaged — in Title 13 Part 124 of the Code of Federal Regulations (CFR) .

For more details on 8(a) program set-asides, see FAR 19.805-1.

What is a SDVOSB Small Business Set-Aside?

Procurements may be set-aside for Service-Disabled Veteran-Owned Small Business (SDVOSB) . A SDVOSB set-aside is the reserving of an acquisition exclusively for participation by SDVOSB concerns. For a procurement to be totally set-aside, a contracting officer must have reasonable expectations that offers will be obtained from at least two capable SDVOSB firms and awards will be made at fair market price. 

For more information on SDVOSB set-asides, go to FAR 19.1405 .

What is a WOSB Set-Aside?

Section 8(m) of the Small Business Act (15 U.S.C. 637(m)) created the Women-Owned Small Business (WOSB) Program . This program provides for a Women-Owned set-aside and is aimed at expanding Federal contracting opportunities for WOSBs.  The WOSB Federal Contract Program authorizes contracting officers to set-aside certain federal contracts for Women-Owned Small Businesses (WOSB) or Economically-Disadvantaged Women-Owned Small Businesses (EDWOSB).

There are 6-Digit North American Industry Classification Codes  designated for EDWOSB set-asides and for WOSB set-asides under the WOSB Program.

For more information on WOSB and EDWOSB set-asides, go to FAR 19.1505 .