Set asides +

What are set-asides?

To help provide a level playing field for small businesses, the government limits competition for certain contracts to small businesses. Those contracts are called “small business set-asides,” and they help small businesses compete for and win federal contracts.

How many set-asides are there?

There are two kinds of set-aside contracts: competitive set-asides and sole-source set-asides.

What are competitive set-aside contracts?

When at least two small businesses could perform the work or provide the products being purchased, the government sets aside the contract exclusively for small businesses. With few exceptions, this happens automatically for all government contracts under $150,000. Some set-asides are open to any small business, but some are open only to small businesses who participate in SBA contracting assistance programs.

What are Sole-source set-aside contracts?

Most contracts are competitive, but sometimes there are exceptions to this rule. Sole-source contracts are a kind of contract that can be issued without a competitive bidding process. This usually happens in situations where only a single business can fulfill the requirements of a contract. To be considered for a sole-source contract, register your business with the System for Award Management (SAM) and participate.