FAR 19.1—Subpart 19.1

[Reserved]

Small business size standards and North American Industry Classification System codes.

FAR 19.102 explains how federal buyers and offerors identify the correct small business size standard and NAICS code for a procurement, and when those determinations are made. It covers where to find SBA size standards and NAICS codes, how NAICS updates work, when SBA measures a concern’s size status, how to assign the proper NAICS code to a solicitation, how to handle multiple-award contracts and orders under them, how to treat solicitations issued before and after October 1, 2028, how to assign codes when a multiple-award contract has one code versus multiple codes, how final NAICS designations may be appealed, and which size standard applies to a solicitation when standards change. In practice, this section is the foundation for small business eligibility because the wrong NAICS code or size standard can change whether a firm qualifies as small, affect set-aside decisions, and create protest or appeal risk. It also gives contracting officers a structured method for classifying acquisitions based on the principal purpose of the supplies or services being bought. For contractors, it is critical because size status is measured at a specific point in time and includes affiliates, so a firm must know exactly when and how its small business representation will be tested. For agencies, it ensures consistency across solicitations and orders and helps align acquisition planning with SBA’s industry-based size framework.

Appealing the contracting officer's North American Industry Classification System code and size standard determination.

FAR 19.103 explains how a contracting officer’s North American Industry Classification System (NAICS) code designation and corresponding size standard can be challenged, who may appeal, when the appeal must be filed, and what happens while the appeal is pending. It covers the finality of the contracting officer’s determination, the 10-calendar-day filing deadline, the special rule allowing SBA to appeal before offers are due, who has standing to appeal (including the special limitation for sole source 8(a) contracts), the requirement to notify the public by solicitation amendment, SBA Office of Hearings and Appeals (OHA) procedures, dismissal of untimely appeals, the contracting officer’s duty to respond and provide the solicitation record, the general rule to withhold award during the appeal, and the effect of OHA’s decision on the pending procurement versus future procurements. In practice, this section is important because the NAICS code and size standard determine which firms can compete as small businesses, so an incorrect designation can materially affect competition, set-aside eligibility, and the integrity of the procurement. The section also cross-references SBA regulations at 13 CFR 121.1102 through 121.1103 and 13 CFR part 134, which govern the appeal process in more detail. For contractors, this rule creates a short and strict window to challenge a code that may exclude them from competition; for contracting officers, it requires prompt notice, record production, and careful handling of the procurement while the appeal is pending.

General.

FAR 19.1301 is the opening, policy-setting section for the HUBZone Program. It identifies the legal source of the program—the HUBZone Act of 1997—and states the program’s core purpose: to provide Federal contracting assistance to qualified small business concerns located in historically underutilized business zones. In practical terms, this section explains why the HUBZone program exists and what government buyers are trying to achieve when they use it: channeling federal contracting dollars to small businesses in distressed communities to help create jobs, attract investment, and support economic development. Although this section does not itself set eligibility procedures, set-aside rules, or award mechanics, it frames the entire subpart by establishing the policy rationale that guides later HUBZone requirements. For contractors, it signals that HUBZone status is not just a label but a statutory tool tied to location, small business qualification, and community development goals. For contracting officers, it provides the basic justification for using HUBZone authorities in acquisition planning and source selection decisions where applicable.

[Reserved].

Status as a HUBZone small business concern.

FAR 19.1303 explains how a firm’s HUBZone small business status is established, where that status is shown, and when it must exist for HUBZone contracting eligibility. It covers SBA’s role in making the status determination under 13 CFR part 126, SBA’s designation of the firm in the Dynamic Small Business Search (DSBS) and SAM, and the rule that only firms shown as HUBZone small business concerns in those systems may receive HUBZone preferences. It also addresses HUBZone joint ventures, including the conditions under which a joint venture may qualify as a HUBZone small business concern, and it states the timing rule that the concern must be HUBZone-qualified at the time of its initial offer. In practice, this section tells contracting officers how to verify eligibility and tells contractors that HUBZone status is an official, system-based designation—not a self-declared label. It also makes clear that HUBZone preferences are not tied to where the work will be performed, which is a common point of confusion. For contractors, the key takeaway is that maintaining current SBA and SAM records is essential; for agencies, the key takeaway is that eligibility must be checked against the official databases at the right time.

Exclusions.

FAR 19.1304 explains when the small business program rules in this subpart do not apply. It excludes several categories of requirements from the subpart’s coverage: purchases that can be satisfied by Federal Prison Industries (FPI) or AbilityOne nonprofit agencies, orders placed under indefinite-delivery contracts, orders placed against Federal Supply Schedules, requirements that are already being performed under the SBA 8(a) program or have been accepted for 8(a) performance unless SBA releases them, and commissary or exchange resale items. In practice, this section tells contracting officers when they should not apply the subpart’s procedures to a requirement, even if the requirement might otherwise look eligible. It also points readers to related authorities where discretionary set-asides may still be possible for some order types. The practical significance is that it prevents improper application of the subpart, avoids conflicts with mandatory or preexisting acquisition programs, and helps contracting personnel route requirements through the correct acquisition vehicle or socioeconomic program.

HUBZone set-aside procedures.

FAR 19.1305 explains how contracting officers must decide whether to use a HUBZone set-aside and what procedural steps follow that decision. It covers the required order of consideration before setting aside an acquisition, when a HUBZone set-aside may be used for competition restricted to HUBZone small business concerns, the minimum market research findings needed to support the set-aside, what happens if only one or no acceptable HUBZone offers are received, and how the general small business set-aside rules and HUBZone sole-source authority fit into the decision process. It also incorporates the SBA procurement center representative (PCR) review and appeal process when SBA recommends a HUBZone set-aside and the contracting officer rejects that recommendation. In practice, this section is important because it controls both the acquisition strategy and the protest/appeal-like internal review path for HUBZone opportunities, so contracting officers must document their market research and sequencing decisions carefully. Contractors benefit because it determines when a procurement is reserved for HUBZone firms and when an award can still be made after a limited competition response.

HUBZone sole-source awards.

FAR 19.1306 explains when a contracting officer may make a HUBZone small business concern award on a sole-source basis instead of using a competition or a small business set-aside. It covers the required order of consideration, the threshold dollar limits for manufacturing and non-manufacturing requirements, the need to confirm that no other HUBZone competition is reasonably expected, the prohibition on using this authority when the requirement is already being performed by or has been accepted for the 8(a) program, the responsibility determination, and the requirement that the price be fair and reasonable. The section also points to the statutory and regulatory authority for sole-source awards and notes that the Small Business Administration may appeal a contracting officer’s decision not to make a HUBZone sole-source award. In practice, this means the contracting officer must document a careful eligibility and market assessment before bypassing competition, and must be prepared to justify both the decision to use or not use the HUBZone sole-source authority and the resulting price. For contractors, this section identifies when a HUBZone firm may receive a direct award opportunity and when the agency must instead consider other acquisition methods.

Price evaluation preference for HUBZone small business concerns.

FAR 19.1307 explains how the HUBZone price evaluation preference works in full and open competition. It covers when the preference may be used, when it may not be used, how the contracting officer must apply the 10 percent evaluation factor, how to treat line items and other price-related adjustments such as transportation costs or rent-free Government property, and the special award rule when a HUBZone small business concern and a large business are tied after the preference is applied. In practice, this section is meant to improve the competitiveness of HUBZone firms in eligible procurements by adjusting evaluated prices rather than changing the actual contract price. It is a source-selection tool, not a mandatory price discount, and it only affects evaluation in the situations the FAR allows. Contracting officers must apply it carefully and consistently, because the wrong use of the preference can distort competition or create an improper award decision. Contractors should understand that the preference can improve their chances of award, but only in the acquisition types and evaluation methods covered by this rule.

[Reserved].

Contract clauses.

FAR 19.1309 tells contracting officers which HUBZone-related clauses must be included in solicitations and contracts, and it ties those clauses to the type of acquisition being conducted. It covers the mandatory use of FAR 52.219-3, Notice of HUBZone Set-Aside or Sole-Source Award, for HUBZone set-asides and HUBZone sole-source awards under FAR 19.1305 and 19.1306, including certain multiple-award contract situations where HUBZone orders may be set aside or issued directly to a HUBZone small business concern. It also requires FAR 52.219-4, Notice of Price Evaluation Preference for HUBZone Small Business Concerns, in full and open competition acquisitions. In addition, it points users to the separate prescriptions for FAR 52.219-14, Limitations on Subcontracting, and FAR 52.219-33, Nonmanufacturer Rule, rather than restating those requirements here. In practice, this section is a clause-selection rule: it ensures the solicitation and resulting contract accurately reflect the HUBZone program structure, the evaluation method, and the post-award performance restrictions that apply. For contracting officers, the main significance is avoiding clause omission or misapplication; for contractors, it signals whether the procurement is a set-aside, sole-source, or preference-based competition and what compliance obligations may follow.

General.

FAR 19.1401 is the introductory provision for the Service-Disabled Veteran-Owned Small Business (SDVOSB) Program. It explains the legal origin of the program under the Veterans Benefit Act of 2003, identifies the statutory basis at 15 U.S.C. 657f, and states the program’s core purpose: to provide Federal contracting assistance to service-disabled veteran-owned small business concerns. In practical terms, this section does not set detailed eligibility procedures, set-aside rules, or contract administration requirements; instead, it establishes the policy foundation for the rest of the SDVOSB subpart. For contracting officers, it signals that later SDVOSB rules are intended to implement a congressionally created preference program. For contractors, it confirms that the program exists to expand access to Federal contracting opportunities for qualifying firms owned and controlled by service-disabled veterans.

Applicability.

FAR 19.1402 is the applicability provision for the subpart governing the procedures that follow in this section. It states that the subpart’s procedures apply to all Federal agencies that employ one or more contracting officers, which means the coverage is government-wide rather than limited to a particular department, bureau, or acquisition type. In practical terms, this section establishes the reach of the subpart and confirms that any agency with contracting authority must follow the prescribed procedures when the subpart is otherwise triggered. The section does not itself create substantive socioeconomic requirements or set evaluation criteria; instead, it answers the threshold question of who must use the subpart’s procedures. For contracting officers and acquisition personnel, this matters because it prevents agencies from treating the subpart as optional or narrowly applicable based on internal policy. For contractors, it signals that the related procedures may be used across the Federal Government wherever the subpart applies.

Status.

FAR 19.1403 explains how a concern’s status as a Service-Disabled Veteran-Owned Small Business (SDVOSB) is established and verified for SDVOSB set-aside and sole-source awards, and how that status is handled after SBA makes an adverse eligibility decision. It also addresses the special treatment of joint ventures seeking SDVOSB program eligibility. The section ties together SBA’s authority to determine SDVOSB status under 13 CFR part 128, the contracting officer’s duty to verify status in SAM, the transition rules for firms that had pending certification applications as of December 31, 2023, and the requirement to update SAM promptly if SBA denies certification or finds the firm ineligible. For joint ventures, it explains when a JV may qualify as an SDVOSB concern and points to the additional SBA joint venture requirements in 13 CFR 128.402. In practice, this section is about making sure only properly certified or grandfathered firms receive SDVOSB program awards, and that both offerors and contracting officers use current SAM and SBA certification information before award.

Exclusions.

FAR 19.1404 explains when the service-disabled veteran-owned small business (SDVOSB) program’s rules do not apply. It identifies four major exclusion categories: requirements that can be met through Federal Prison Industries or AbilityOne nonprofit agencies, orders placed under indefinite-delivery contracts, orders placed against Federal Supply Schedules, and requirements already being performed by an 8(a) participant or accepted by SBA under the 8(a) program unless SBA releases them. In practice, this section tells contracting officers when they must look outside the SDVOSB set-aside framework because another mandatory or specialized acquisition program controls the requirement. It also preserves limited discretion for set-asides of certain orders under the order-placement rules in FAR 16.505 and FAR 8.405-5. For contractors, the section matters because it can remove a procurement from SDVOSB competition even when the requirement otherwise appears eligible, and it can also affect whether a small business opportunity is available at all.

Set-aside procedures.

FAR 19.1405 explains how contracting officers establish and administer set-asides under the Service-Disabled Veteran-Owned Small Business (SDVOSB) Program. It covers the required sequencing before choosing an SDVOSB set-aside, the market-research standard for restricting competition, the post-2024 eligibility verification rules for offerors, what happens when only one or no acceptable SDVOSB offers are received, and the procedures for handling SBA procurement center representative (PCR) recommendations and appeals. In practice, this section tells contracting officers when they may reserve an acquisition for SDVOSB concerns, how to confirm that an offeror is eligible for award, and how to respond if the market does not produce adequate SDVOSB competition. It also protects the integrity of the program by requiring fair-market-price expectations and by ensuring that only properly certified or grandfathered offerors are considered after January 1, 2024. For contractors, the section is important because it determines whether they can compete for or receive award under an SDVOSB set-aside and what documentation or certification status they must maintain in SAM and SBA systems.

Sole source awards.

FAR 19.1406 explains when a contracting officer may make a sole-source award to a service-disabled veteran-owned small business (SDVOSB) concern and how that decision fits into the broader small business acquisition framework. It covers the required order of consideration between SDVOSB sole source and small business set-asides, the dollar thresholds for manufacturing and nonmanufacturing requirements, the need to confirm that no 8(a) program requirement blocks the award, the responsibility and fair-and-reasonable-price determinations, and the post-2024 certification rules for eligible SDVOSB concerns in SAM and SBA’s certification system. It also addresses the exclusion of certain requirements under FAR 19.1404 and recognizes SBA’s right to appeal a contracting officer’s decision not to use an SDVOSB sole source. In practice, this section tells contracting officers when they must consider SDVOSB sole source first, what eligibility and price checks must be completed before award, and which firms are eligible to receive these awards after the certification transition date. For contractors, it signals that SDVOSB status alone is not enough; the firm must also meet the certification and responsibility requirements and be able to support a fair and reasonable price.

[Reserved]

Contract clauses.

FAR 19.1408 tells contracting officers which clauses must be included when using the Service-Disabled Veteran-Owned Small Business (SDVOSB) program and where to look for the prescriptions for related clauses. Its main subject is the mandatory use of the SDVOSB set-aside/sole-source notice clause at 52.219-27 in solicitations and contracts that are set aside for, or awarded on a sole-source basis to, eligible SDVOSB concerns under FAR 19.1405 and 19.1406. The section also extends that clause requirement to certain multiple-award contract situations, including when orders may be set aside for SDVOSBs under FAR 8.405-5 and 16.505(b)(2)(i)(F), or when orders may be issued directly to one SDVOSB contractor under FAR 19.504(c)(1)(ii). In addition, it does not itself prescribe the limitations on subcontracting clause or the nonmanufacturer rule clause, but instead points the reader to the separate prescription provisions at FAR 19.507(e) and 19.507(h). In practice, this section is a clause-placement roadmap: it ensures the solicitation and contract documents accurately reflect SDVOSB program requirements and directs users to the correct FAR locations for related performance and supply-chain restrictions.

General.

FAR 19.1500 is the introductory provision for the Women-Owned Small Business (WOSB) Program. It explains three core topics: the statutory basis for the program under section 8(m) of the Small Business Act, the program’s purpose of giving women-owned small business concerns an equal opportunity to compete for federal contracts and helping agencies meet women-owned small business participation goals, and the relationship between the program’s eligible categories—economically disadvantaged women-owned small business (EDWOSB) concerns and WOSB concerns—and the broader definition of “women-owned small business concern” in FAR 2.101. In practice, this section tells contracting personnel and offerors why the program exists and how it fits into the federal small business framework. It also signals that the detailed eligibility and procedural rules are found in SBA regulations at 13 CFR part 127, not in this short FAR section itself. For contractors, the practical significance is that WOSB and EDWOSB status can create access to set-aside opportunities, but only if the firm meets the applicable SBA eligibility requirements. For agencies, the section reinforces that use of the program is tied to both competition policy and socioeconomic goal achievement.

[Reserved]

Applicability.

FAR 19.1502 is a scope-and-coverage provision for the subpart it sits in: it tells readers who must follow the procedures that follow in this section. The rule is simple but important—these procedures apply to all Federal agencies that employ one or more contracting officers. In practice, that means the subpart is not limited to a particular department, civilian agency, or type of procurement office; if an agency has contracting officers, the agency must use the subpart’s procedures when they are relevant. This section does not itself create substantive socioeconomic requirements or evaluation criteria; instead, it establishes the reach of the subpart so agencies know whether they are covered. For contracting personnel, the practical significance is that compliance is mandatory across the executive branch wherever contracting officers operate, and agencies cannot opt out based on internal organization or mission. For contractors, the section matters because it signals that the subpart’s procedures may affect solicitations and awards issued by any covered Federal agency.

Status.

FAR 19.1503 explains how a concern’s status is established and verified for Women-Owned Small Business (WOSB) and Economically Disadvantaged Women-Owned Small Business (EDWOSB) program purposes. It covers four main topics: SBA’s role in determining status under 13 CFR part 127, the contracting officer’s duty to verify SAM registration and certification before making a WOSB or EDWOSB set-aside or sole-source award, the consequences when SBA later issues an adverse eligibility decision, and the special rule for joint ventures seeking WOSB/EDWOSB treatment. In practice, this section is about making sure only properly certified firms receive WOSB/EDWOSB awards and that agencies stop relying on an award if SBA later finds the firm was not eligible. It also ties status verification to SAM and notes that pending certification applications appear in DSBS, not as proof of certified status in SAM. For contracting officers, the section creates a pre-award verification step and a post-award corrective-action obligation; for contractors, it underscores the need to maintain current certification and SAM information. For agencies, it affects award counting, reporting, and FPDS updates when SBA overturns eligibility.

Exclusions.

FAR 19.1504 explains when the rules in this subpart do not apply. It covers four exclusion categories: requirements currently being performed by an 8(a) contractor or already accepted by SBA for the 8(a) program unless SBA releases them; requirements that must be satisfied through mandatory Government sources under FAR 8.002; orders placed under indefinite-delivery contracts under FAR subpart 16.5; and orders placed against Federal Supply Schedules under FAR subpart 8.4. The section exists to prevent overlap between this subpart and other acquisition authorities, and to preserve the priority of existing statutory or regulatory sourcing mechanisms. In practice, it tells contracting officers and contractors that this subpart is not a universal rule for all acquisitions, especially where the 8(a) program, mandatory sources, task or delivery orders, or schedule orders are already governed elsewhere. The cross-references to FAR 16.505 and 8.405-5 are important because they preserve limited discretion to set aside certain orders even though the general subpart does not apply.

Set-aside procedures.

FAR 19.1505 explains how contracting officers apply the Women-Owned Small Business (WOSB) Program and the Economically Disadvantaged Women-Owned Small Business (EDWOSB) Program when setting aside acquisitions. It covers when a contracting officer may use an EDWOSB-only set-aside or a broader WOSB set-aside, the market-research findings required before restricting competition, and the size and certification eligibility an offeror must have to compete. It also addresses how the contracting officer must verify eligibility in SAM and DSBS, what to do when the apparently successful offeror’s certification is pending, and the SBA status-determination process and timing. The section further covers award when only one acceptable offer is received, withdrawal of the set-aside when no acceptable offers are received, and the role of the SBA procurement center representative (PCR), including the appeal process if the contracting officer rejects a PCR recommendation. In practice, this section is the operational roadmap for using WOSB/EDWOSB set-asides correctly, avoiding awards to ineligible firms, and handling SBA review and appeals without delaying procurement unnecessarily.

Women-Owned Small Business Program sole-source awards.

FAR 19.1506 explains when a contracting officer must consider a sole-source award under the Women-Owned Small Business (WOSB) Program, including awards to Economically Disadvantaged Women-Owned Small Business (EDWOSB) concerns and other WOSB concerns eligible under the program. It covers the order of consideration before small business set-asides, the NAICS-based eligibility thresholds for underrepresentation and substantial underrepresentation, the requirement that no reasonable expectation exists of receiving two or more offers from eligible firms, and the additional conditions that must be met for a sole-source award. The section also addresses the dollar-value caps for manufacturing and nonmanufacturing acquisitions, the responsibility determination, the fair and reasonable price requirement, and the certification requirement under 13 CFR 127.300. It further prohibits contracting officers from asking SBA for a status determination on pending certification applications and gives SBA the right to appeal a contracting officer’s decision not to make a sole-source award. In practice, this section is a gatekeeping rule: it tells contracting officers when a WOSB sole-source award is legally available, and it tells contractors that certification, NAICS eligibility, and pricing all matter before a sole-source award can be made.

[Reserved]

Contract clauses.

FAR 19.1508 tells contracting officers which contract clauses must be included when using the Women-Owned Small Business (WOSB) and Economically Disadvantaged Women-Owned Small Business (EDWOSB) programs. It covers the mandatory use of the notice clauses at 52.219-29 and 52.219-30 for solicitations and contracts that are set aside for, or awarded on a sole-source basis to, EDWOSB or WOSB concerns, including certain multiple-award contract situations where orders may later be set aside or issued directly to one qualifying contractor. It also points the reader to the separate prescription rules for using the limitations on subcontracting clause at 52.219-14 and the nonmanufacturer rule clause at 52.219-33. In practice, this section is about making sure the solicitation and contract documents match the acquisition strategy and the applicable small business program requirements. If the wrong clause is omitted or the wrong one is used, the procurement may not properly notify offerors of the program conditions and may create compliance problems later in performance or order placement.