Government small business set-aside designation is a valuable tool
when properly documented, registered, certified and wisely used.
There are several
Set Aside Codes for Qualified Small Businesses in Government
Carefully select your small business designation that may apply to
your company when preparing
business and marketing plans for federal government
Under the Small Business Act, federal agencies issue a
variety of procurement request that are reserved partially or
totally for small business participation.
- aside designation are Self-certifying and are
verified through record checks and site visits by contracting
officers, DCMAO and Source Selection Boards for federal procurements
before contract awards are made.
Difference between Small Business Set-Aside, Total/100% Small Business
Fines and or
imprisonment for misrepresenting status.)
What is a Government
Contracting set-aside code?
Part 19 of the Federal
Acquisition Regulation (FAR) implements the acquisition-related
sections of the Small Business Act (15 U.S.C. 631, et seq.),
applicable sections of the Armed Services Procurement Act (10 U.S.C.
2302, et seq.), the Federal Property and Administrative Services Act
(41 U.S.C. 252), section 7102 of the Federal Acquisition
Streamlining Act of 1994 (Public Law 103-355), 10 U.S.C. 2323, and
Executive Order 12138, May 18, 1979.
(See Federal Acquisition Regulation (FAR) PARTS
Small Business (SB) � Located in U.S, organized for
profit, including affiliates is independently owned & operated, not
dominant in field of operations in which it is bidding on Government
contracts, AND meets Small Business Administration (SBA) size standards
included in solicitation. Size standard is based upon the North American
Industrial Classification Standard (NAICS) assigned to the specific
procurement dependent upon product/service purchased.
Woman-Owned Small Business (WOSB) � Small Business,
at least 51% owned by ≥ 1 women, AND management & daily business
operations controlled by ≥ 1 women.
Small Disadvantaged Business (SDB) � Small Business,
unconditionally owned & controlled by ≥ 1 socially & economically
disadvantaged individuals who are of good character & citizens of the
U.S. AND SBA-certified.
Small Disadvantaged Business 8(a) Certified [8(a)] �
Small Business, SBA-certified as a SDB, AND SBA-certified into the 8(a)
Business Development Program for a period of 9 years.
Historically Underutilized Business Zone (HUBZone) �
Small Business, owned & controlled ≥ 51% by U.S. citizens, SBA-certified
as a HUBZone concern (principal office located in a designated HUBZone &
≥ 35% of employees live in a HUBZone).
Veteran-Owned Small Business (VOSB) � Small
Business, veteran-owned as defined in 38 USC 101(2), ≥ 51% owned by ≥ 1
veterans, & management/daily operations controlled by ≥ 1 veterans.
Service-Disabled Veteran Owned Small Business (SD-VOSB)
Small Business, veteran-owned, ≥ 51% owned by ≥ 1 service-disabled
veterans, AND management & daily business operations controlled by ≥ 1
service disabled veterans OR in the case of veteran with permanent &
severe disability, the spouse or permanent caregiver of such veteran,
AND with 0% - 100% service-connected disability as defined in 38 USC
101(16) & documented on DD 214 or equivalent.
Historically Black Colleges & Universities (HBCU)/
Minority Institutions (MI) � HBCU is an accredited institution
established before 1964 whose principal mission is education of black
Americans. MIs are institutions meeting requirements of Higher Education
Act of 1965 and Hispanic-serving institutions defined at 20 USC 1059.
The Secretary of Education must designate HBCUs/MIs.
SEE LIST AT:
However, anyone who misrepresents their status as a
small disadvantaged business for the purpose of securing a contract or
Be punished by imposition of fine, imprisonment, or both
Be subject to administrative remedies, including suspension and
Be ineligible for participation in programs conducted under the
authority of the Small Business Act