Set-Asides & Small Business Programs
Understanding small business set-asides, 8(a), WOSB, SDVOSB, HUBZone, SDB programs, and how to leverage certifications for federal contracts.
What are small business set-aside contracts?
Federal opportunities reserved specifically for qualified small businesses instead of opening competition to large primes.
Do small business set-asides increase the cost of government contracting?
Set-asides are designed to expand competition and strengthen the supplier base, not simply drive up costs.
What is a set-aside in government?
A procurement that an agency reserves for a specific category of businesses, such as small businesses or SBA programs like 8(a), WOSB, SDVOSB, or HUBZone.
What are the set-aside limitations on subcontracting for small business?
Small business primes must perform a required percentage of contract cost or effort themselves or through similarly situated small firms.
What is 100% small business set aside?
The entire procurement is reserved exclusively for qualified small businesses; large businesses cannot compete as primes.
What is the 2 year rule for contractors?
SBA expectation that a small business prime should not be unduly reliant on a single large subcontractor over time.
When can a contract be set-aside?
When market research shows at least two responsible small businesses can perform the work at fair prices under the rule of two.
At what point is a business no longer considered a small business?
When it exceeds the SBA size standard for its primary NAICS code, measured by average annual receipts or employee count.
What is 8(a) in federal contracting?
An SBA program supporting small, socially and economically disadvantaged businesses with training, mentoring, and access to set-aside contracts.
What is 8(a) set aside?
A federal contract competition limited to certified 8(a) businesses currently in the SBA 8(a) program.
How does 8(a) work?
A nine-year business development journey with SBA counseling, mentoring, and access to set-aside and sole-source opportunities.
What does "set aside" mean in government contracts?
The government reserves a contract opportunity for a specific category of businesses rather than opening competition to all vendors.
What are the four types of contracts?
Firm-fixed-price (FFP), cost-reimbursement, time-and-materials (T&M), and indefinite-delivery/indefinite-quantity (IDIQ) contracts.
How does set aside work in a contract?
Eligibility is limited to firms meeting specific small business or socio-economic criteria; non-eligible proposals are rejected.
What qualifies as a SDB?
A small business that is at least 51% owned and controlled by socially and economically disadvantaged individuals.
What is an example of set aside?
A VA IT support solicitation issued as an SDVOSB set-aside, or an 8(a) sole-source award for a cybersecurity requirement.
Is WOSB certification worth it?
Yes, if your target agencies actively use WOSB or EDWOSB set-asides and you are prepared to pursue those opportunities.
What is the difference between WOSB and WBE?
WOSB is a federal SBA program for federal contracts; WBE is a state, local, or private-sector recognition for women-owned businesses.
What makes you a small disadvantaged business?
Being a small business under SBA size standards and at least 51% owned and controlled by socially and economically disadvantaged individuals.
What net worth do you need for DBE?
DBE programs typically require disadvantaged owners to have personal net worth below approximately $1.32 million, excluding certain assets.
Turn Your Certifications Into Wins
Having a certification is just the start. GovCon in a Box helps you find set-aside opportunities that match your capabilities, connect with the right teaming partners, and build a capture pipeline focused on winnable work.
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