FAR 19—Small Business Programs

Scope of part.

FAR 19.000 is the scope statement for FAR Part 19, which is the federal government’s small business policy and program framework. It explains that Part 19 implements the Small Business Act, certain Armed Services Procurement Act authorities, 41 U.S.C. 3104, and Executive Order 12138, and it identifies the specific subjects covered: determining whether a concern is eligible for the programs in the part; the roles of agencies and the Small Business Administration (SBA); set-asides for small business, 8(a) participants, HUBZone small business concerns, service-disabled veteran-owned small business (SDVOSB) concerns, and economically disadvantaged women-owned small business (EDWOSB) and women-owned small business (WOSB) concerns; the certificate of competency program; subcontracting assistance; the 8(a) business development program; HUBZone price evaluation preferences; veteran-owned small business concerns; sole-source awards to HUBZone, SDVOSB, EDWOSB, and WOSB concerns where authorized; and the use of reserves. In practice, this section tells contracting officers and offerors what Part 19 is about and where its rules apply, so it serves as the gateway to the government’s small business acquisition programs. It also makes clear that participation in these programs depends on meeting the applicable definitions of “small business concern” and “concern,” which is foundational to eligibility and compliance. Finally, it establishes the geographic reach of the part, generally applying in the United States and its outlying areas, while allowing discretionary application outside those areas unless another rule says otherwise.

Definitions.

FAR 19.001 provides the core definitions used throughout FAR Part 19, which governs small business programs. This section defines “concern,” “fair market price,” “industry,” and “similarly situated entity,” and those definitions control how agencies and contractors apply set-asides, subcontracting requirements, size/status determinations, and price reasonableness concepts in small business contracting. In practice, these definitions determine who counts as a qualifying business, how to think about pricing in small business set-aside contexts, how to group firms by NAICS-based industry, and when a subcontractor can be treated as part of the prime contractor’s small business performance for subcontracting and limitation-on-subcontracting purposes. The section is important because a misunderstanding of any one of these terms can affect eligibility for award, compliance with subcontracting plans, and whether a contractor remains in compliance after award. It also cross-references SBA regulations, especially 13 CFR 121.105, showing that FAR Part 19 definitions work together with SBA size and affiliation rules rather than standing alone.

Subpart 19.1

Subpart 19.2

Subpart 19.3

Subpart 19.4

Subpart 19.5

Subpart 19.6

Subpart 19.7

Subpart 19.8