Set-Aside Contracts
Government contracts reserved exclusively for small businesses or specific socioeconomic categories to promote competition and equity.
Set-aside contracts are government procurement actions reserved for specific categories of businesses. The federal government has statutory goals to award a percentage of contracts to small businesses and disadvantaged groups.
Types of Set-Asides
Common set-aside categories include Small Business (SB), 8(a) Business Development Program for socially and economically disadvantaged businesses, HUBZone Program for businesses in historically underutilized areas, Service-Disabled Veteran-Owned Small Business (SDVOSB), Women-Owned Small Business (WOSB), and Economically Disadvantaged Women-Owned Small Business (EDWOSB).
Federal Small Business Goals
The government aims to award at least 23% of federal contracting dollars to small businesses overall, with specific sub-goals for each category. These goals create significant opportunities for qualifying businesses.
Finding Set-Aside Opportunities
SAM.gov allows filtering by set-aside type. ProposalApp's bid matching automatically considers your certifications and set-aside eligibility when matching opportunities.
Frequently asked questions
What percentage of federal contracts are set aside for small business?
The federal government has a statutory goal to award at least 23% of all prime contract dollars to small businesses. Individual agencies also have sub-goals for 8(a), HUBZone, SDVOSB, and WOSB categories.
Can a large business bid on a small business set-aside?
No. Set-aside contracts are reserved exclusively for qualifying small businesses or specific socioeconomic categories. Large businesses are not eligible to submit prime bids on set-aside opportunities, though they can subcontract with set-aside businesses.