Set-Aside
A contracting practice where competitions are restricted to specific categories of small businesses, such as 8(a), HUBZone, SDVOSB, or WOSB firms.
Overview
A set-aside is a contracting technique where the government restricts competition for a contract to a specific category of businesses — most commonly small businesses or specific socioeconomic subcategories. Only businesses that qualify under the designated category can compete, reducing competition and increasing the chances of award for eligible firms.
Why It Matters in GovCon
Set-asides are the primary mechanism through which the federal government meets its small business contracting goals. If your business holds an applicable certification, set-asides dramatically narrow the competitive field. Understanding which set-aside categories apply to your business is fundamental to building a viable opportunity pipeline.
Key Details
- Total Small Business Set-Aside: Open to all certified small businesses under the assigned NAICS code.
- Partial Set-Aside: A portion of the requirement is set aside for small businesses while the remainder is competed as full and open.
- Socioeconomic Set-Asides: Restricted to specific categories — 8(a), HUBZone, SDVOSB, WOSB/EDWOSB.
- Rule of Two: A contracting officer must set aside a procurement for small businesses if there is a reasonable expectation that at least two responsible small businesses will submit competitive offers.
- Self-Certification: For most categories, businesses self-certify their size status; SBA certifications are required for 8(a), HUBZone, WOSB, and SDVOSB.
How GovCon Data Can Help
GovCon Data's opportunity filters let you instantly narrow results by set-aside type, ensuring you only see contracts you are eligible to compete for. The AI matching engine prioritizes set-aside opportunities that align with your certifications.
Related Terms
- 8(a) Business Development Program
- HUBZone
- Service-Disabled Veteran-Owned Small Business (SDVOSB)
- Women-Owned Small Business (WOSB)
- Small Business Administration (SBA)
More Solicitations Terms
A procurement approach where the government selects the offer that provides the greatest overall benefit, considering factors beyond just price.
The group of offerors selected by the government as having a reasonable chance of being awarded the contract, based on initial proposal evaluations.
A solicitation method where the government awards a contract to the lowest-priced responsive, responsible bidder through sealed bidding.
A source selection method where the contract is awarded to the lowest-priced offeror whose proposal meets all technical requirements.
A document that describes required contract outcomes and performance standards rather than prescribing how the work should be done.
A pre-solicitation document where the government seeks industry input on requirements, capabilities, and market conditions before issuing a formal solicitation.
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