FAR 19.502-6—Setting aside a class of acquisitions for small business.
Plain-English Summary
FAR 19.502-6 explains when an agency may establish a class of acquisitions as a small business set-aside instead of deciding set-aside status one procurement at a time. It covers class set-asides for selected products or services, including partial class set-asides, and ties them to the normal small business set-aside standards in FAR 19.502-1, 19.502-2, and 19.502-3(a). The rule also addresses how the class determination is made—either unilaterally or jointly—what must be included in the written determination, and how far the class set-aside reaches within the agency. Finally, it requires contracting officers to review each individual acquisition under the class set-aside for changed circumstances and allows withdrawal or modification when market conditions, requirements, or small business capability have materially changed. In practice, this section is meant to streamline recurring buys that are suitable for small business participation while still protecting the Government from using an outdated set-aside when the market or requirement has changed.
Key Rules
Class set-asides are allowed
An agency may set aside a class of acquisitions for exclusive small business participation when individual acquisitions in that class would satisfy the applicable small business set-aside criteria in FAR 19.502-1, 19.502-2, or 19.502-3(a). This can cover selected products or services, or only a portion of the acquisitions in the class.
Future needs can justify action
The determination does not have to wait for a current procurement if future acquisitions can be clearly foreseen. This lets agencies plan recurring requirements in advance and avoid repeated one-off set-aside decisions.
Unilateral or joint determination
The class set-aside decision may be made by the contracting activity alone or jointly with SBA, depending on the circumstances and agency practice. The rule recognizes both approaches as valid.
Written determination required
Each class small business set-aside must be documented in writing. The written determination must identify the covered products and services, limit the scope to the named contracting office(s), and state any exclusions required by the rule.
No overlap with automatic set-asides
The class set-aside cannot override acquisitions that are automatically set aside under FAR 19.502-2(a). Those acquisitions remain subject to the automatic set-aside rule and are not controlled by the class determination.
Office-specific scope only
The class set-aside applies only to the contracting office(s) named in the determination. Other offices are not bound unless they are specifically included in the written action.
Partial class limits
If the class set-aside is only partial, it does not apply to an individual acquisition that cannot be severed into two or more economic production runs or reasonable lots. In other words, the requirement must be divisible in a practical and economical way before a partial set-aside can be used.
Ongoing review is mandatory
For each individual acquisition under the class set-aside, the contracting officer must review whether requirements, specifications, delivery terms, or market conditions have materially changed since the class was approved. The review is intended to ensure the set-aside still makes sense for the specific buy.
Withdrawal or modification when conditions change
If the changes are material enough that the Government would likely pay more than a fair market price or small businesses no longer have the capability to meet the requirement, the contracting officer may withdraw or modify the class set-aside under FAR 19.502-9(a). Written notice must be given to the SBA PCR, or to the appropriate SBA office if no PCR is assigned.
Responsibilities
Agency / Contracting Activity
Identify recurring products or services that may be suitable for a class small business set-aside, decide whether the class should be established unilaterally or jointly, and ensure the determination is properly documented and limited to the correct contracting office(s).
Contracting Officer
Review each individual acquisition under the class set-aside, compare current requirements and market conditions to the original approval, and determine whether the class set-aside still applies or should be withdrawn or modified. The contracting officer must also provide written notice to SBA when withdrawing or modifying the set-aside.
SBA PCR
Receive written notice when a class set-aside is withdrawn or modified, and participate in joint determinations where applicable. The PCR serves as SBA’s point of contact for oversight and coordination on small business set-aside matters.
Small Business Concerns
Compete for acquisitions covered by the class set-aside and rely on the agency’s written determination only to the extent the acquisition remains within the scope of the class and the requirement is still suitable for small business participation.
Practical Implications
This rule is most useful for recurring buys such as common supplies or services where the agency can predict future demand and small businesses are likely to remain competitive.
The biggest pitfall is treating a class set-aside as permanent; contracting officers still have to check each buy for changes in scope, quantity, delivery, specs, or market conditions.
Another common mistake is failing to document the class determination clearly enough—especially the covered items, the named offices, and any partial-set-aside limits.
Agencies should be careful not to use a class set-aside to bypass the automatic set-aside rules in FAR 19.502-2(a); those acquisitions must be handled under the automatic rule.
When a requirement is not severable into reasonable lots or production runs, a partial class set-aside may not be appropriate, so the acquisition strategy should be reassessed before solicitation.
Official Regulatory Text
(a) A class of acquisitions of selected products or services, or a portion of the acquisitions, may be set aside for exclusive participation by small business concerns if individual acquisitions in the class will meet the criteria in 19.502-1 , 19.502-2 , or 19.502-3 (a). The determination to make a class small business set-aside shall not depend on the existence of a current acquisition if future acquisitions can be clearly foreseen. (b) The determination to set aside a class of acquisitions for small business may be either unilateral or joint. (c) Each class small business set-aside determination shall be in writing and must- (1) Specifically identify the product(s) and service(s) it covers; (2) Provide that the set-aside does not apply to any acquisition automatically set aside under 19.502-2 (a). (3) Provide that the set-aside applies only to the (named) contracting office(s) making the determination; and (4) Provide that the set-aside does not apply to any individual acquisition if the requirement is not severable into two or more economic production runs or reasonable lots, in the case of a partial class set-aside. (d) The contracting officer shall review each individual acquisition arising under a class small business set-aside to identify any changes in the magnitude of requirements, specifications, delivery requirements, or competitive market conditions that have occurred since the initial approval of the class set-aside. If there are any changes of such a material nature as to result in probable payment of more than a fair market price by the Government or in a change in the capability of small business concerns to satisfy the requirements, the contracting officer may withdraw or modify (see 19.502-9 (a)) the unilateral or joint set-aside by giving written notice to the SBA PCR (or, if a PCR is not assigned, see 19.402 (a)) stating the reasons.