Question 1

What is a Total Small Business Set-Aside?

Accepted Answer

A Total Small Business Set-Aside reserves an entire procurement exclusively for small businesses. Acquisitions valued between $10,000 and $250,000 are automatically set aside under FAR 19.5. For acquisitions above $250,000, a contracting officer must set the acquisition aside if there is a reasonable expectation of receiving offers from at least two small businesses at a fair market price.

Question 2

How do I qualify for SBA set-asides?

Accepted Answer

You must be registered and active in SAM.gov, meet the SBA size standard for the NAICS code assigned to the contract, and be at least 51% owned and controlled by U.S. citizens. No additional certification is required beyond maintaining small business status.

Question 3

What is the SBA size standard and how is it determined?

Accepted Answer

SBA size standards vary by industry and NAICS code. They are expressed either as a maximum number of employees (for manufacturing and mining) or as an average annual revenue over three years (for service and other industries). You can look up the applicable standard at sba.gov/size-standards.

Question 4

Can large businesses compete on SBA set-aside contracts?

Accepted Answer

No. Once a contract is designated as a Total Small Business Set-Aside, only businesses meeting the applicable SBA size standard for the primary NAICS code may submit offers. Large businesses are excluded from the competition entirely.

Question 5

What happens if only one small business responds to a set-aside solicitation?

Accepted Answer

If only one small business responds and meets the requirements, the contracting officer may negotiate a sole-source award with that firm under FAR 13.106 (for simplified acquisitions) or convert the procurement to an unrestricted competition if two small businesses are not available at a fair price.

Question 6

Are subcontracting requirements different for SBA set-asides?

Accepted Answer

Yes. On contracts above $700,000 (or $1.5M for construction), the awardee must submit a small business subcontracting plan under FAR 19.702. The prime contractor is responsible for meeting agreed subcontracting goals.

Question 7

Can I lose my small business status mid-contract?

Accepted Answer

Yes, but the size determination is typically made at the time of initial offer. If you were small at the time of offer and award, you may continue performance even if you subsequently grow beyond the size standard, though recertification may be required on multi-year contracts.

Question 8

How does SamSearch help me find SBA set-aside contracts?

Accepted Answer

SamSearch automatically indexes and filters federal solicitations by the SBA set-aside code across all major federal agencies. You can further filter by NAICS code, state, agency, and keywords to quickly surface the most relevant opportunities for your business.

Question 9

How often are new SBA set-aside contracts posted to SAM.gov?

Accepted Answer

Federal agencies post new solicitations on SAM.gov on a rolling daily basis. SamSearch re-indexes these opportunities daily to ensure you see the most current active contracts.

Question 10

What is the difference between a set-aside and a sole-source award?

Accepted Answer

A set-aside is a competitive procurement restricted to qualifying small businesses, multiple firms can bid. A sole-source award goes directly to one firm without competition, typically justified under specific FAR exceptions such as urgency, unique capabilities, or after a failed set-aside competition.

Question 11

What is the ostensible subcontractor rule and how does it affect SBA set-asides?

Accepted Answer

The ostensible subcontractor rule (13 C.F.R. § 121.103(h)(4)) treats a subcontractor as affiliated with the prime contractor if the subcontractor performs the primary and vital requirements of the contract or if the prime is unusually reliant on the subcontractor. On SBA set-aside contracts, this affiliation can disqualify your bid if the subcontractor's employees are counted against your size standard. Ensure your firm genuinely performs the primary work.

Question 12

Can a foreign-owned company qualify for SBA set-aside contracts?

Accepted Answer

Generally no. SBA size standards require that the business be at least 51% owned and controlled by U.S. citizens or permanent resident aliens. Businesses with majority foreign ownership do not qualify as small businesses under the SBA's rules and are therefore ineligible for set-aside competitions.

Question 13

What NAICS codes have the highest volume of SBA small business set-aside contracts?

Accepted Answer

The highest-volume SBA set-aside NAICS codes include professional services (management consulting, IT services), defense-related engineering services, construction and maintenance, health services administration, and logistics support. DoD, GSA, VA, and DHS collectively award the largest shares of small business set-aside dollars annually.

Question 14

What is the limitation on subcontracting rule for small business set-asides?

Accepted Answer

Under FAR 52.219-14, a small business prime contractor on a set-aside for services must perform at least 50% of the labor costs with its own employees. For general construction, at least 15% must be performed by the prime's own workers. For specialty construction, at least 25%. These limits prevent small business set-asides from becoming pass-through vehicles for large businesses.

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