FAR 52.219-13—Notice of Set-Aside of Orders.
Plain-English Summary
FAR 52.219-13, Notice of Set-Aside of Orders, tells contracting officers when and how they may reserve individual orders under a multiple-award contract for small business concerns, and it explains how that notice applies only to the specific orders identified as set aside. The clause addresses two related but distinct situations: the basic clause, which gives the contracting officer discretion to set aside orders for the small business concerns identified in FAR 19.000(a)(3), and Alternate I, which makes set-asides mandatory when the conditions of FAR 19.502-2 and the applicable small business program eligibility requirements are met. In practice, this clause is the mechanism that turns a broad contract vehicle into a small-business-only competition for particular orders, while leaving the underlying contract itself unchanged. It also ties the order-level set-aside decision to the applicable socioeconomic or small business program rules, so the contracting officer must match the order to the correct program and eligibility standard. For contractors, the clause signals that some orders may be competed only among eligible small businesses, which affects market access, teaming, pricing, and proposal strategy. For agencies, it is a tool to meet small business goals at the order level without setting aside the entire contract vehicle. The clause’s restrictions are limited to the specific set-aside orders, so it does not automatically restrict all orders under the contract.
Key Rules
Order-level set-asides only
The clause applies to individual orders, not the entire contract. Only the specific orders identified by the contracting officer as set aside are subject to the notice and competition restrictions.
Basic clause is discretionary
Under the basic clause, the contracting officer may set aside orders for the small business concerns identified in FAR 19.000(a)(3). This gives the government discretion to reserve orders when appropriate, rather than requiring a set-aside in every case.
Alternate I is mandatory when criteria are met
Under Alternate I, the contracting officer will set aside orders when the conditions of FAR 19.502-2 and the applicable program eligibility requirements are satisfied. This changes the rule from permissive to mandatory for the covered small business programs.
Notice must identify set-aside orders
The contracting officer must give notice of which order or orders, if any, will be set aside for the relevant small business concerns and the applicable small business program. The notice is the formal signal that the order competition is restricted.
Restrictions apply only to the set-aside orders
The clause makes clear that the notice and its restrictions apply only to the specific orders that have been set aside. Other orders under the same contract remain available under the normal ordering procedures unless separately set aside.
Program eligibility matters
The set-aside decision must align with the specific small business program involved and its eligibility requirements. The contracting officer must ensure the intended offerors qualify under the applicable program before restricting the order competition.
Responsibilities
Contracting Officer
Decide whether to set aside an order under the basic clause, or set it aside when required under Alternate I. Provide notice identifying the specific order or orders set aside and ensure the correct small business program and eligibility rules are applied.
Small Business Concerns
Compete only for orders for which they are eligible under the applicable small business program. Ensure they meet the program-specific eligibility requirements before relying on the set-aside notice.
Agency
Use the clause appropriately in solicitations and ordering procedures for multiple-award contracts. Support contracting officers in meeting small business goals and applying the correct program rules at the order level.
Large Business Offerors/Contractors
Recognize that some orders may be restricted to eligible small businesses and adjust teaming, subcontracting, and bidding strategies accordingly. Do not assume access to orders that have been set aside.
Practical Implications
This clause is important in multiple-award contract ordering because it lets agencies reserve specific orders for small businesses without changing the base contract structure.
A common pitfall is confusing the basic clause with Alternate I: the basic clause allows discretion, while Alternate I requires a set-aside when the FAR 19.502-2 and program-specific conditions are met.
Contracting officers must be careful to match the order to the correct small business program and verify eligibility; using the wrong program or failing to document the basis for the set-aside can create protest risk.
Contractors should watch each order notice closely, because only the orders expressly set aside are restricted; other orders under the same contract may still be open to broader competition.
For small businesses, the clause creates opportunities at the order level, but only if they are eligible under the applicable program and responsive to the specific notice and ordering procedures.
Official Regulatory Text
As prescribed in 19.507 (f)(1) , insert the following clause: Notice of Set-Aside of Orders (Mar 2020) (a) The Contracting Officer may set aside orders for the small business concerns identified in 19.000 (a)(3). (b) The Contracting Officer will give notice of the order or orders, if any, to be set aside for small business concerns identified in 19.000 (a)(3) and the applicable small business program. This notice, and its restrictions, will apply only to the specific orders that have been set aside for any of the small business concerns identified in 19.000 (a)(3). (End of clause) Alternate I (Mar 2020) . As prescribed in 19.507 (f)(2) , substitute the following paragraph (a) for paragraph (a) of the basic clause: (a) The Contracting Officer will set aside orders for the small business concerns identified in 19.000 (a)(3) when the conditions of FAR 19.502-2 and the specific program eligibility requirements are met, as applicable.