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Government Set-Aside Codes: What You MUST Know

Humam Amouri
Humam Amouri
·5 min read
Cover Image for Government Set-Aside Codes: What You MUST Know

Quick read: Learn what each set‑aside code on SAM.gov means, how to qualify, and proven tactics to turn those codes into contracts.


1. Why Set‑Asides Matter

Federal law reserves a meaningful share of procurement dollars for small businesses. Contracting officers use “type of set‑aside” codes (e.g., SBA, 8A, HZC) to signal which socioeconomic program can compete or whether a contract is totally or partially set aside. Knowing the code—and what it unlocks—helps you target opportunities, tailor proposals, and stay compliant.

2. At‑a‑Glance: Common Set‑Aside Codes

Code Meaning Core Statute/FAR Part
SBA Small Business Set‑Aside (Total) FAR 19.502‑2
SBP Small Business Set‑Aside (Partial) FAR 19.502‑3
8A 8(a) Competitive FAR 19.805‑2
8AN / 8A‑Sole 8(a) Sole Source FAR 19.808‑1
HZC / HZS HUBZone Competitive / Sole Source FAR 19.1305 & 19.1306
SDVOSBC / SDVOSBS Service‑Disabled Veteran‑Owned Small Business Competitive / Sole Source FAR 19.1405‑06
WOSB / EDWOSB Women‑Owned & Economically Disadvantaged Women‑Owned FAR 19.1505
BI Buy Indian 25 U.S.C. 47, DIAR 1480.402
VSA / VSS Veteran Set‑Aside / Veteran Sole Source (VA‑only) VAAR 819.7005
NONE No set‑aside used —

Tip: On SAM.gov, filter “Type of Set‑Aside” to see only the codes that match your certifications.

3. Socio‑Economic Programs in Depth

3.1 8(a) Business Development

  • Who qualifies? Small businesses that are both socially and economically disadvantaged, with < $7 M average annual receipts for most NAICS.
  • How to apply: Certify via SBA Certify platform; prepare narrative of disadvantage, two years of financials, and business plan.
  • Insider tips
    • Leverage the annual review to update NAICS and primary business code.
    • Use 8(a) sole‑source authority for emergency or niche procurements (up to $7 M manufacturing / $4.5 M services).
    • Monitor the Bona‑Fide Place of Business moratorium (extended through Sept 30 2025)—this waives geographic restrictions for construction.

3.2 HUBZone

  • Who qualifies? Principal office in a qualified HUBZone + 35 % of employees living in a HUBZone.
  • Certify: Upload payroll, lease, and map confirmation to SBA Connect.
  • Pro tips
    • Check the new HUBZone map (last major update July 1 2023); addresses can shift in/out annually.
    • Agencies must consider HUBZone before unrestricted if ≥ 2 eligible firms respond.

3.3 Service‑Disabled Veteran‑Owned (SDVOSB)

  • Who qualifies? ≥ 51 % owned & controlled by one or more service‑disabled vets; permanent disability not required.
  • New in 2023: Certification moved from VA to SBA; reuse your VetCert account.
  • Contracting nuggets
    • Below $250 k, contracts are automatically small‑business set‑asides—request the CO restrict further to SDVOSB when two or more are available.
    • VA may still use Veteran Set‑Aside (VSA) code for non‑SDV veteran firms.

3.4 Women‑Owned & EDWOSB

  • Who qualifies? ≥ 51 % owned & controlled by women; EDWOSB adds personal net worth ≤ $850 k (excluding home & retirement).
  • Target industry list: Over 700 NAICS where women are under‑represented; find the official PDF and tag these codes in SAM registration.
  • Pitch tip: Cite the agency‑wide 5 % WOSB goal in your capability statement.

3.5 Total & Partial Small‑Business Set‑Asides (SBA/SBP)

  • Automatic under the simplified acquisition threshold (SAT, currently $250 k)—unless the CO documents reason otherwise.
  • Partial set‑aside: CO can carve out a portion of a large contract that small businesses perform.

3.6 Buy Indian Act (BI)

  • Scope: Used only by DOI & Indian Health Service for Indian‑owned enterprises.
  • Key doc: DIAR 1480.504 outlines priority among preference programs.

4. Compliance Essentials

  1. Limitations on Subcontracting – Prime must self‑perform 50 % (services) / 15 % (construction) or follow 13 CFR 125.6.
  2. NAICS & Size Standards – Verify size at time of offer; recertify for long‑term IDIQs when required.
  3. Joint Ventures & Mentor‑Protégé – JV inherits protégé’s status; file JV agreement with SBA before offer.
  4. Misrepresentation – False claims can trigger suspension, debarment, or even criminal penalties.

5. Hunting for Set‑Aside Opportunities

  • Use SAM.gov advanced search → Type of Set‑Aside filter.
  • Subscribe to Dynamic Small Business Search (DSBS) email alerts.
  • Check agency Forecasts of Contracting Opportunities early in the fiscal year.

6. Pitch‑Winning Tips

Tip Why It Works
Highlight your set‑aside code in the subject line Busy COs scan emails; codes immediately signal eligibility.
Quote the agency’s small‑business scorecard Shows you know their pain point and goal shortfalls.
Bundle capabilities with larger primes Helps meet limitation on subcontracting while learning the ropes.
Update capability statement every quarter Reflects any new certifications, NAICS, or past performance.

7. Key Resources


Disclaimer: Regulations change. Always check the latest Federal Acquisition Regulation (FAR) and SBA rules before bidding.

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