Set-asides and whether the work fits you

After this lesson you should be able to read a set-aside label on a notice, compare the assigned NAICS code and size standard with your company, and decide whether the work is worth capturing in AsherGate. A set-aside limits who may compete. It is not a promise that you will win, and it is not a reason to capture work you cannot perform.

FAR 19.501 says the purpose of small business set-asides is to award certain acquisitions exclusively to small business concerns. A set-aside limits an acquisition exclusively to participation by small business concerns identified in FAR 19.000(a)(3), which include small business, 8(a) participants, HUBZone small business concerns, service-disabled veteran-owned small business concerns eligible under the SDVOSB Program, and economically disadvantaged women-owned and women-owned small business concerns eligible under the WOSB Program. A set-aside may be total or partial. All solicitations involving set-asides or reserves must specify the NAICS code or codes and corresponding size standard or standards.

FAR 19.502-2(a) says that each acquisition of supplies or services with an anticipated dollar value above the micro-purchase threshold but not over the simplified acquisition threshold shall be set aside for small business unless the contracting officer determines there is not a reasonable expectation of obtaining offers from two or more responsible small business concerns that are competitive in terms of fair market prices, quality, and delivery. If only one acceptable offer from a responsible small business arrives, the contracting officer should award to that firm. If none arrive, the set-aside is withdrawn and, if the requirement is still valid, resolicited unrestricted. Before using that paragraph, the contracting officer must refer to FAR 19.203(b).

FAR 19.502-2(b) says that for acquisitions over the simplified acquisition threshold, the contracting officer shall set the acquisition aside for small business when there is a reasonable expectation of offers from at least two responsible small business concerns and award at fair market prices. Before using that paragraph, the contracting officer must refer to FAR 19.203(c). Except as authorized by law, FAR 19.501(f) says a contract may not be awarded as a result of a small business set-aside if the cost to the awarding agency exceeds the fair market price.

FAR 19.203 says there is no order of precedence among the 8(a), HUBZone, SDVOSB, and WOSB programs. At or below the simplified acquisition threshold, the 19.502-2(a) small-business set-aside rule does not preclude an award under those socioeconomic programs. Above the simplified acquisition threshold, the contracting officer shall first consider those socioeconomic programs before considering a small business set-aside. If SBA has accepted a requirement into the 8(a) Program, it must remain there unless SBA agrees to release it. Small business set-asides still have priority over full and open competition.

Copy the set-aside label, NAICS code, and size standard from the notice. Then ask whether you are eligible under that label, whether you are small under that NAICS including affiliates, and whether you can actually perform the work. AsherGate does not certify 8(a), HUBZone, SDVOSB, or WOSB status, and it does not decide fit.

Using the Ashkettle story below, the listing is an 8(a) set-aside, NAICS 238220, for commercial refrigeration installation. Ashkettle repairs residential kitchens and is not an 8(a) participant. The work does not fit, so the team does not create an AsherGate draft.

The official step is to copy the set-aside program, NAICS, and size standard from the notice and compare them with your SAM.gov representations and the work you actually do. Capture files only when those lines match. Do not spend analysis time on a notice you cannot bid.