What is a set-aside in US government contracting?

Set-asides are one of the main tools the US federal government uses to meet its small business contracting goals. For a small IT firm, they mean competing only against other small firms.

The kinds of set-aside

• Small business set-aside: open to any firm under the size standard.
• 8(a) Business Development: small firms owned and controlled by socially and economically disadvantaged individuals.
• HUBZone: small firms based in, and employing people from, historically underutilized business zones.
• Women-owned small business (WOSB and EDWOSB).
• Service-disabled veteran-owned small business (SDVOSB).

Some programs also allow sole-source awards to eligible firms up to set limits. Program rules and certifications change, and some have been under review, so check sba.gov for current eligibility.

Are you small?

Each opportunity names one NAICS code, and the SBA sets a size standard for each code, usually a cap on average annual revenue for IT services. Check the current SBA table for your codes.

How to get in

1. Register on SAM.gov and get your UEI.
2. Choose your NAICS codes and apply for any SBA certifications you qualify for.
3. Answer sources sought notices in your codes. They help contracting officers see that two or more small firms could bid.
4. Search SAM.gov for set-asides in your codes.

Set-asides are generally limited to US small businesses, so foreign firms usually take part as subcontractors or through a US subsidiary that qualifies. More in US small business set-asides.