FAR 19.1505—Set-aside procedures.
Plain-English Summary
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.
Key Rules
Follow general set-aside rules first
Before deciding to set aside an acquisition under the WOSB Program, the contracting officer must comply with FAR 19.203. This means the WOSB/EDWOSB decision is not made in isolation; the normal small-business set-aside analysis still applies.
Use market research to justify restriction
For EDWOSB or WOSB set-asides, the contracting officer must have a reasonable expectation based on market research that enough eligible firms will compete and that award can be made at a fair and reasonable price. The exact competition threshold depends on whether the NAICS code is designated as underrepresented or substantially underrepresented.
EDWOSB set-aside for underrepresented NAICS codes
For NAICS codes SBA has designated as underrepresented, the contracting officer may restrict competition to EDWOSB concerns when there is a reasonable expectation that at least two EDWOSB offers will be received and award will be at a fair and reasonable price.
WOSB set-aside for substantially underrepresented NAICS codes
For NAICS codes SBA has designated as substantially underrepresented, the contracting officer may restrict competition to WOSB concerns eligible under the WOSB Program, including EDWOSBs, when there is a reasonable expectation that at least two eligible WOSB offers will be received and award may be made at a fair and reasonable price.
Offeror must be small and certified or pending
To submit an offer under an EDWOSB or WOSB set-aside, the firm must qualify as a small business under the assigned NAICS size standard and must be certified in accordance with SBA rules, or have a pending certification application in DSBS as allowed by the rule. The certification path differs depending on whether the set-aside is EDWOSB-only or WOSB.
Verify eligibility in SAM and DSBS
The contracting officer must check SAM to confirm the concern is designated as certified, or check DSBS for a pending certification application. If the firm is not shown as certified or pending in the required systems, the offer is ineligible and must be removed from award consideration.
Handle pending certification before award
Before award, the contracting officer must verify the apparently successful offeror’s status. If certification is pending in DSBS, the contracting officer must notify SBA’s Director/Government Contracting by email and request a status determination, providing the required identifying and solicitation information.
Observe SBA determination timelines
SBA has 15 calendar days from the contracting officer’s notice to determine whether the offeror is eligible under the WOSB Program. If SBA does not respond in time, the contracting officer may either allow more time or proceed to the next highest evaluated offeror, but may not award to an offeror that is not certified and eligible.
Award and withdrawal rules
The contracting officer may award if only one acceptable offer is received from a qualified EDWOSB or WOSB concern. If no acceptable offers are received, the set-aside must be withdrawn and the requirement, if still valid, must be reconsidered for set-aside under FAR 19.203 and subpart 19.5.
PCR recommendations and appeals
The SBA PCR may recommend use of the WOSB Program. If the contracting officer rejects that recommendation, the contracting officer must notify the PCR promptly, SBA may appeal within five business days, and the procurement is generally suspended until the head of the agency decides the appeal unless urgent and compelling circumstances justify proceeding. SBA must file the formal appeal within 15 business days, and the agency decision must state the reasons for denial in writing.
Responsibilities
Contracting Officer
Apply FAR 19.203 before using a WOSB set-aside; conduct and rely on market research; decide whether an EDWOSB-only or WOSB set-aside is appropriate based on the NAICS designation; verify offeror eligibility in SAM and DSBS; notify SBA when the apparently successful offeror has pending certification; wait for or manage SBA’s status determination; award only to a certified and eligible concern; award to a single acceptable qualified offeror when permitted; withdraw the set-aside if no acceptable offers are received; and respond to PCR recommendations and appeals as required.
Offeror / Contractor
Be a small business under the applicable NAICS size standard; obtain and maintain the required WOSB or EDWOSB certification status, or have a pending certification application where allowed; ensure the firm’s status is properly reflected in SAM and DSBS; and submit an offer only if eligible for the specific type of set-aside.
SBA
Maintain the NAICS underrepresentation and substantial underrepresentation designations; process certification-related status determinations when notified by the contracting officer; issue a determination within 15 calendar days when possible; and, through the PCR, recommend use of the WOSB Program and pursue appeals when the contracting officer rejects the recommendation.
SBA Procurement Center Representative (PCR)
Review procurements and may recommend use of the WOSB Program; if the contracting officer rejects the recommendation, notify the contracting officer of intent to appeal within five business days and pursue the appeal process through SBA and the agency head.
Head of the Agency / Designee
Decide SBA appeals in writing, state the reasons for any denial, and determine whether urgent and compelling circumstances justify proceeding with award while an appeal is pending.
Practical Implications
This section makes market research critical: if the file does not support a reasonable expectation of two eligible offers and fair pricing, the set-aside decision is vulnerable.
Eligibility must be checked in the systems named by the rule; relying on a representation in the proposal without SAM/DSBS verification can lead to an improper award.
Pending certification is not the same as confirmed eligibility. Contracting officers need to build time into the acquisition schedule for SBA’s 15-day determination window.
If no acceptable offers come in, the set-aside does not simply fail silently; it must be withdrawn and the requirement reconsidered under the broader small-business set-aside rules.
PCR objections can pause the procurement, so contracting officers should document the rationale for their set-aside decision carefully and be prepared to defend it in an appeal.
Official Regulatory Text
(a) The contracting officer- (1)
Shall comply with 19.203 before deciding to set aside an acquisition under the WOSB Program; (2) (i) May set aside acquisitions exceeding the micro-purchase threshold for competition restricted to EDWOSB concerns when the acquisition is assigned a NAICS code in which SBA has determined that WOSB concerns are underrepresented in Federal procurement; or (ii) Is assigned a NAICS code in which SBA has determined that WOSB concerns are substantially underrepresented in Federal procurement, as specified on SBA’s Web site at http://www.sba.gov/WOSB . (b) For requirements in NAICS codes designated by SBA as underrepresented, a contracting officer may restrict competition to EDWOSB concerns if the contracting officer has a reasonable expectation based on market research that- (1)
Two or more EDWOSB concerns will submit offers for the contract and; (2)
Contract award will be made at a fair and reasonable price. (c) A contracting officer may restrict competition to WOSB concerns eligible under the WOSB Program (including EDWOSB concerns), for requirements in NAICS codes designated by SBA as substantially underrepresented if there is a reasonable expectation based on market research that- (1)
Two or more WOSB concerns eligible under the WOSB Program (including EDWOSB concerns), will submit offers and; (2)
Contract award may be made at a fair and reasonable price. (d) An EDWOSB or WOSB concern may submit an offer under an EDWOSB or WOSB set-aside when the offeror— (1) Qualifies as a small business concern under the size standard corresponding to the NAICS code assigned to the contract; and (2) (i) For an EDWOSB set-aside, is certified pursuant to 13 CFR 127.300 as an EDWOSB or has a pending application for EDWOSB certification in the DSBS (see 13 CFR 127.504(a) ); or (ii) For a WOSB set-aside, is certified pursuant to 13 CFR 127.300 as an EDWOSB or WOSB, or has a pending application for EDWOSB or WOSB certification in the DSBS (see 13 CFR 127.504(a) ). (e) The contracting officer shall verify that offers received are eligible for consideration for award by checking SAM to see if the EDWOSB or WOSB concern is designated as a certified concern or checking DSBS for a pending application for certification. (1) If the offeror is designated as certified in SAM or has a pending application for certification in DSBS, proceed with the offer evaluation. (2) Unless the offeror is designated as certified in SAM or has a pending application for certification in DSBS, the offer is not eligible for award and shall be removed from consideration. (f) Prior to award, the contracting officer shall verify the apparently successful offeror is certified in SAM, or has a pending application for certification in DSBS. If the apparently successful offeror's EDWOSB or WOSB certification is pending in DSBS, the contracting officer shall notify SBA's Director/Government Contracting by email at WOSBpendingcertification@sba.gov , and request SBA's status determination. The contracting officer shall provide SBA with the offeror's name, unique entity identifier, type of set-aside, NAICS code, and solicitation number. (1) Within 15 calendar days from the date of the contracting officer's notification, SBA will make a determination regarding the offeror's status as an EDWOSB or WOSB eligible under the WOSB program. (2) If the contracting officer does not receive a determination from SBA within 15 calendar days, the contracting officer at their discretion, may provide SBA additional time to make a determination, or may proceed with award to the next highest evaluated offeror. (3) The contracting officer shall not make award to an offeror who is not a certified EDWOSB or WOSB concern eligible under the WOSB program. (g) The contracting officer may make an award, if only one acceptable offer is received from a qualified EDWOSB concern or WOSB concern eligible under the WOSB Program. (h) If no acceptable offers are received from an EDWOSB concern or WOSB concern eligible under the WOSB Program, the set-aside shall be withdrawn and the requirement, if still valid, must be considered for set aside in accordance with 19.203 and subpart 19.5 . (i) The SBA procurement center representative (PCR) may recommend use of the WOSB Program. If the contracting officer rejects a recommendation by SBA's PCR— (1)
The contracting officer shall notify the PCR as soon as practicable; (2)
SBA shall notify the contracting officer of its intent to appeal the contracting officer’s decision no later than five business days after receiving notice of the contracting officer’s decision; (3)
The contracting officer shall suspend further action regarding the procurement until the head of the agency issues a written decision on the appeal, unless the head of the agency makes a written determination that urgent and compelling circumstances which significantly affect the interests of the United States compel award of the contract; (4)
Within 15 business days of SBA’s notification to the head of the contracting activity, SBA shall file a formal appeal to the head of the agency, or the appeal will be determined withdrawn; and (5)
The head of the agency, or designee, shall specify in writing the reasons for a denial of an appeal brought under this section.