(a)(1) The purpose of small business set-asides is to award certain acquisitions exclusively to small business concerns. A “set-aside for small business” is the limiting of an acquisition exclusively for participation by small business concerns. A small business set-aside may be open to any of the small business concerns identified at 19.000(a)(3). A small business set-aside of a single acquisition or a class of acquisitions may be total or partial.
(2) The purpose of small business reserves is to award one or more multiple-award contracts to any of the small business concerns identified at 19.000(a)(3), under a full and open competition. A small business reserve shall not be used when the acquisition can be set aside, in total or in part.
(b) The contracting officer makes the determination to make a small business set-aside, in total or in part, or a reserve. The Small Business Administration (SBA) procurement center representative (PCR) (or, if a PCR is not assigned, see 19.402(a)) may make a recommendation to the contracting officer.
(c) The contracting officer shall review acquisitions to determine if they can be set aside, in total or in part, or reserved for small business, giving consideration to the recommendations of agency personnel in the Office of Small and Disadvantaged Business Utilization, or for the Department of Defense, in the Office of Small Business Programs. Agencies may establish threshold levels for this review depending upon their needs.
(d) At the request of an SBA PCR (or, if a PCR is not assigned, see 19.402(a)), the contracting officer shall make available for review at the contracting office (to the extent of the SBA representative's security clearance) any proposed acquisition in excess of the micro-purchase threshold.
(e) All solicitations involving set-asides, in total or in part, or reserves shall specify the NAICS code(s) and corresponding size standard(s) (see 19.102).
(f) Except as authorized by law, a contract may not be awarded as a result of a small business set-aside if the cost to the awarding agency exceeds the fair market price.
(g) For the applicability of the limitations on subcontracting and the nonmanufacturer rule, see 19.505.
[85 FR 11760, Feb. 27, 2020, as amended at 86 FR 44248, Aug. 11, 2021]
Notes of Decisions
Brent Berry v. Native Am. Servs. Corp., 109 F.4th 1297 (11th Cir. 2024).
“§ 637 ; 48 C.F.R. § 19.501 . One such program is the Minority Small Business and Capital Ownership Development Pro- gram—more commonly known as the 8(a) program.”
Adams & Assocs., Inc. v. United States, 109 Fed. Cl. 340 (Fed. Cl. 2013).
“” 48 C.F.R. § 19.501 (g). We think it was not hrational to rely on the mechanisms cited above to remedy problems with limited competition.”
Dynamic Educ. Sys., Inc. v. United States, 109 Fed. Cl. 306 (Fed. Cl. 2013).
“” 48 C.F.R. § 19.501 (g). Ms. Andry’s largest concern with respect to the limited number of small businesses available was that entities either would not bid, or would be unable to prepare to commence performance on more than one contract at a time.”
Contract Mgmt., Inc. v. Rumsfeld, 291 F. Supp. 2d 1166 (D. Haw. 2003).
“See 48 C.F.R. § 19.501 (a). 2 . At a September 18, 2003 hearing before this Court, the parties agreed that Plaintiff Contract Management Inc.”
Sigmatech, Inc. v. United States (Fed. Cl. 2018).
“For these reasons, the court has determined that the Contracting Officer’s August 10, 2016 decision to set aside the November 1, 2016 Solicitation for small businesses was neither arbitrary nor capricious, because the “small business” potential bidder information gathered…”
The Tolliver Grp., Inc. v. United States (Fed. Cl. 2020).
“656, 680 (2016) (quoting 48 C.F.R. § 19.501 (c)): “As noted by another Judge of the United States Court of Federal Claims, ‘[C]ontracting officers are required to ‘review acquisitions to determine if they can be set aside for small business,’ and must ‘perform market research’…”
The Tolliver Grp., Inc. v. United States (Fed. Cl. 2020).
“656, 680 (2016) (quoting 48 C.F.R. § 19.501 (c)): “As noted by another Judge of the United States Court of Federal Claims, ‘[C]ontracting officers are required to ‘review acquisitions to determine if they can be set aside for small business,’ and must ‘perform market research’…”
Young-Robinson Assocs., Inc. v. United States, 760 F. Supp. 212 (D.D.C. 1991).
“502-72(b)(l) (citing 48 C.F.R. § 19.501 (g)). Similarly, under SBA regulations, that agency will not “accept for 8(a) award proposed procurements not previously in the 8(a) program if (a) A solicitation has already been issued for procurement as a small business set-aside .”
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