What a set-aside is
A set-aside reserves a contract, or part of one, for a group of businesses. When a contracting officer expects at least two capable small businesses to bid at a fair price, federal rules generally call for a small business set-aside. This is often called the “rule of two”.
The common types
- Small business (total or partial): open to firms that are small under the size standard for the notice's NAICS code.
- 8(a): for firms in the SBA's 8(a) Business Development program.
- HUBZone: for certified firms in Historically Underutilized Business Zones.
- Service-disabled veteran-owned (SDVOSB): for certified firms owned and controlled by service-disabled veterans.
- Women-owned (WOSB and EDWOSB): for certified women-owned small businesses in eligible industries.
Size standards
“Small” depends on your industry. The SBA sets size standards by NAICS code, based on revenue or employees. Check the standard for the code on each notice.
Open competitions still matter
Plenty of notices have no set-aside at all. Aeonis Bids always keeps those in view, and hides only notices reserved for groups you haven't selected.
Certification
Most programs require certification through the SBA. Check the official SBA pages for current requirements before you claim a status in a bid.