Small Business Programs
FAR Part 19 establishes the framework and requirements for maximizing small business participation in federal contracting through set-asides, status determinations, and targeted programs.
Overview
FAR Part 19, Small Business Programs, establishes the policies and procedures for promoting and ensuring the participation of small businesses in federal contracting. It covers the determination of small business size standards, set-aside requirements, subcontracting plans, cooperation with the Small Business Administration (SBA), and specific programs for disadvantaged, HUBZone, service-disabled veteran-owned, and women-owned small businesses. The part is organized into subparts that address size standards, policies, status determinations, set-asides, certificates of competency, subcontracting, the 8(a) program, and other targeted small business initiatives. Each subpart provides detailed rules for eligibility, solicitation, award, and administration of contracts involving small business concerns. The overall goal is to maximize opportunities for small businesses to compete for and perform federal contracts, in accordance with statutory requirements and government-wide policy objectives.
Key Rules
- Size Standards and Status
- Establishes how businesses are classified as small, including use of NAICS codes and SBA determinations.
- Set-Asides and Reserves
- Details when and how acquisitions must be set aside for small businesses, including total and partial set-asides.
- Subcontracting Plans
- Requires large contractors to submit and comply with subcontracting plans to ensure small business participation.
- Special Small Business Programs
- Provides procedures for 8(a), HUBZone, service-disabled veteran-owned, and women-owned small business programs.
- Cooperation with SBA
- Outlines the roles of SBA representatives and the process for resolving disputes or appeals regarding small business status.
Responsibilities
- Contracting Officers: Must identify opportunities for small business participation, apply set-aside rules, verify status, and enforce compliance with subcontracting plans.
- Contractors: Must accurately represent their size/status, comply with set-aside and subcontracting requirements, and maintain required documentation.
- Agencies: Oversee implementation, report on small business participation, and coordinate with SBA as needed.
Practical Implications
- FAR Part 19 ensures small businesses have fair access to federal contracts, supporting economic growth and diversity in the supplier base.
- Contractors must be vigilant in understanding eligibility, set-aside rules, and reporting obligations to avoid compliance issues.
- Common pitfalls include misrepresentation of size/status, failure to comply with subcontracting plans, and overlooking set-aside opportunities.