Set-Asides & Socioeconomic Programs

Set-Aside

A contract or portion of a contract reserved for competition only among firms in a specified small business category.

A set-aside is an acquisition reserved exclusively for competition among small businesses, or among a specific socioeconomic subset such as SDVOSBs, 8(a) participants, HUBZone firms, or WOSBs. Under the FAR's order of precedence and the 'Rule of Two,' contracting officers must set aside an acquisition when there is a reasonable expectation that offers will be received from at least two responsible firms in the category at fair-market prices. SDVOSB set-asides limit competition to certified SDVOSBs.

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What is an SDVOSB set-aside contract?

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