XL EagleSet-Aside (Small Business Set-Aside)
Set-Aside stands for Small Business Set-Aside. A set-aside limits a competition to small businesses, or to a specific group like 8(a), HUBZone, women-owned or service-disabled veteran-owned firms. Large companies cannot bid as the prime.
Contracting officers set aside work when they expect at least two capable small businesses to bid at fair prices, often called the rule of two. Set-aside winners must also follow limits on how much work they pass to firms that are not small.
Why it matters to a small contractor
Set-asides are where small trades have the best odds. Make sure your SAM profile lists the right NAICS codes and size so you are eligible for the ones you want.
Example
A park service janitorial contract is set aside for small businesses under a NAICS size standard. Only firms that are small for that code can submit offers.
Set-Aside: common questions
What is the rule of two?
If the contracting officer expects at least two responsible small businesses to bid at fair market prices, the work is generally set aside for small businesses.
Can a large business sub on a set-aside?
Yes, within limits. The small prime must still perform its required share of the work.
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