Small Business Guide

Small Business Set-Asides

A small business concern is a concern, including its affiliates, that is independently owned and operated, not dominant in the field of operation in which it is bidding on government contracts, and qualified as a small business under the size standards set forth in 13 Code of Federal Regulations (CFR) Part 121. The purpose of a small business "set-aside" is to award a certain acquisition or class of acquisitions to small businesses. The set-aside may be partial or total. This requirement does not apply to purchases under $3,000 (micro purchases). Acquisitions over the micro purchase threshold but not exceeding the Simplified Acquisition Threshold (SAT) ($150,000) are automatically reserved for small business unless the contracting officer is unable to obtain offers from two or more small business concerns. The contracting officer shall set aside any acquisition over $150,000 when there is a reasonable expectation that:

• Offers will be obtained from at least two responsible small business concerns.
• Award will be made at fair market prices.

If the criteria above are not met, the contracting officer may consider a partial set-aside. The contracting officer will also consider the severability of the work into separate lots in making his/her determination. Partial set-asides will not be authorized for procurements using Simplified Acquisition Procedures (SAP) (FAR Part 13).