FAR 52.219-6—Notice of Total Small Business Set-Aside.
Plain-English Summary
FAR 52.219-6, Notice of Total Small Business Set-Aside, tells offerors and contracting personnel how a total small business set-aside works and who may compete. It defines “small business concern” for purposes of the clause, including the role of affiliates and the link to SBA affiliation rules at 13 CFR 121.103. It also explains when the clause applies: to contracts totally set aside for small business and to certain orders set aside for small business under multiple-award contracts under FAR 8.405-5 and 16.505(b)(2)(i)(F). The clause then states the core competition rule: only small business concerns may submit acceptable offers, and offers from non-small businesses are nonresponsive and must be rejected. It further confirms that any award under the solicitation must go to a small business concern. The Alternate I version expands the competition pool to include Federal Prison Industries, Inc. (FPI), and changes the award rule so award may be made to either a small business concern or FPI. In practice, this clause is the notice that enforces the set-aside restriction, protects the integrity of small business programs, and gives offerors clear warning that eligibility is a threshold issue, not a matter for later cure after award.
Key Rules
Small business definition
The clause defines a small business concern as one that is independently owned and operated, not dominant in its field, and small under the solicitation’s size standard. This definition includes affiliates, so size and eligibility are not based only on the offeror’s standalone status.
Affiliation matters
Affiliates are entities that control or can control one another, directly or indirectly, including through common ownership, management, or contractual relationships. SBA determines affiliation under 13 CFR 121.103, so apparent small business status can be lost if affiliation makes the concern other than small.
Applies only to set-asides
This clause applies only to total small business set-aside contracts and to certain small business set-aside orders under multiple-award contracts. If the procurement is not set aside for small business, this clause does not govern competition or award eligibility.
Only small businesses may compete
Under the basic clause, offers are solicited only from small business concerns. Offers from firms that are not small business concerns are nonresponsive and must be rejected, meaning they cannot be accepted or corrected into eligibility after submission.
Award must go to a small business
Any award resulting from the basic clause must be made to a small business concern. This makes small business status a mandatory award condition, not just a preference or evaluation factor.
Alternate I includes FPI
Under Alternate I, the solicitation also permits offers from Federal Prison Industries, Inc. (FPI). In that version, award may be made to either a small business concern or FPI, so the competition and award rules are broader than in the basic clause.
Responsibilities
Contracting Officer
Insert the clause when required by FAR 19.507(c), ensure the correct version or alternate is used, and enforce the set-aside restriction in the solicitation and award process. The contracting officer must reject nonresponsive offers from ineligible firms and make award only to an eligible small business concern, or to FPI when Alternate I applies.
Offeror / Contractor
Determine and represent its small business status accurately, including the effect of affiliates and SBA affiliation rules. The offeror must submit an offer only if it qualifies under the applicable size standard and must understand that ineligibility will result in rejection of the offer.
SBA
Provide the governing affiliation framework through 13 CFR 121.103 and administer size and affiliation determinations when challenged or otherwise required. SBA’s rules control whether a concern is treated as small for purposes of this clause.
Agency / Procurement Activity
Structure the acquisition correctly as a total small business set-aside when appropriate and ensure the solicitation language matches the intended competition. The agency must also apply the clause consistently to covered orders under multiple-award contracts.
Practical Implications
This clause is a gatekeeper: if a firm is not small, it generally cannot compete under the basic version, and its offer should be rejected rather than evaluated on the merits.
Affiliation is a common pitfall. A company may appear small on its own but become other-than-small because of affiliates, joint control, common management, or certain contractual ties.
For contracting officers, using the wrong clause version can create protest risk or an improper competition pool, especially where FPI is involved or where the procurement is an order under a multiple-award contract.
For contractors, size status must be checked before bidding, not after submission. A mistaken self-certification can lead to rejection and potential downstream consequences if the representation is inaccurate.
The clause reinforces that small business set-asides are mandatory eligibility competitions, not evaluation preferences, so responsiveness and size status are threshold issues that can decide the procurement early.
Official Regulatory Text
As prescribed in 19.507 (c) , insert the following clause: Notice of Total Small Business Set-Aside (Nov 2020) (a) Definition . Small business concern , as used in this clause— (1) Means a concern, including its affiliates, that is independently owned and operated, not dominant in the field of operation in which it is bidding on Government contracts, and qualified as a small business under the size standards in this solicitation. (2) Affiliates , as used in paragraph (a)(1) of this clause, means business concerns, one of whom directly or indirectly controls or has the power to control the others, or a third party or parties control or have the power to control the others. In determining whether affiliation exists, consideration is given to all appropriate factors including common ownership, common management, and contractual relationships. SBA determines affiliation based on the factors set forth at 13 CFR 121.103. (b) Applicability . This clause applies only to- (1) Contracts that have been totally set aside for small business concerns; and (2) Orders set aside for small business concerns under multiple-award contracts as described in 8.405-5 and 16.505 (b)(2)(i)(F). (c) General. (1) Offers are solicited only from small business concerns. Offers received from concerns that are not small business concerns shall be considered nonresponsive and will be rejected. (2) Any award resulting from this solicitation will be made to a small business concern. (End of clause) Alternate I (Mar 2020) . As prescribed in 19.507 (c), substitute the following paragraph (c) for paragraph (c) of the basic clause: (c) General. (1) Offers are solicited only from small business concerns and Federal Prison Industries, Inc. (FPI). Offers received from concerns that are not small business concerns or FPI shall be considered nonresponsive and will be rejected. (2) Any award resulting from this solicitation will be made to either a small business concern or FPI.